SNAP Prepares to Report Third Quarter Income: What’s in the Cards?

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Break SNAP is expected to release its third quarter 2021 results on October 21.

Zacks’ consensus estimate for revenue is currently set at $ 1.09 billion, which indicates growth of 59.9% from the figure released a year ago.

In the last reported quarter, its subscriber growth – reflected in Daily Active Users (DAU) – increased by 55 million year-over-year and 13 million sequentially. The DAU at the end of the second quarter was 293 million.

Zacks’ consensus estimate for global DAUs is currently set at 301 million, indicating growth of 20.9% from the previous year quarter.

The consensus mark for net income has held steady at 6 cents per share over the past 30 days, indicating a 500% increase from the prior year quarter.

Let’s see how things went for the upcoming announcement.

Snap Inc. Price and EPS Surprise

Snap Inc. price-eps-surprise | Snap Inc. quote

Factors to consider

Snap benefited from a spike in Snapchat usage. The growing adoption of Snapchat among Gen Z (13-24 year olds) should have driven SADs. It is a platform larger than Facebook FB, Instagram and Twitter TWTR among this demographics.

The company has focused on continuously adding a set of innovative features like Lens Studio 2.0, Camera Kit, Snap Minis, and Bitmoji for Games, which makes Snapchat more appealing to users and advertisers.

In the third quarter, the company launched Bitmoji 3D with more than 1,200 combinations of body poses, facial expressions, gestures, and backgrounds to choose from. Snapchatters can see their 3D Bitmoji in Snap profiles, Friendship profiles, and also have the option to share their personalized 3D Bitmoji with friends on and off Snapchat.

Snap introduced the My Places feature for Snap Map, where Snapchatters can discover over 30 million businesses, save their favorite local spots, and find personalized recommendations told by their friends and the global Snapchat community.

The company also released a suite of creative tools, including personalized stickers and three augmented reality-enabled lenses that encourage Snapchatters to spell fingers, in honor of International Deaf Week. Using SignAll’s AI and computer vision technology that recognize and translate American Sign Language, these AR lenses will inspire Snapchatters to spell their name, along with other common words like love, hug, and smile.

In addition to the strong adoption of AR lenses, Discover content and shows are expected to have driven user growth.

Zacks’ consensus estimate for Q3 ARPU is set at $ 3.65, which suggests a 33.7% increase from the figure released a year ago.

A stable ad spend environment is expected to reflect on Snap’s third-quarter revenue growth. Creator Marketplace, launched in Q2, is expected to have been a key enabler in Q3. Creator Marketplace integrates creators directly into Snap’s advertising ecosystem so businesses can connect with lens makers, lens developers, lens partners, and possibly Snap stars to help elevate their Snapchat marketing presence. .

The partnership of this company Zacks Rank # 3 (Hold) with the multiplatform game engine, Unity software U to extend the reach of Unity’s advertising offering to Snapchat advertisers is expected to have attracted ad revenue in the reporting quarter. You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

Advertising was the sole source of revenue for Snap, which faced significant competition from Twitter, Facebook, Google, and Pinterest for ad dollars. Additionally, a persistent decline in the price per ad impression likely weighed on ad revenue.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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