Snap (NYSE:SNAP) shares plunged more than 10% today after the company’s Q4 results displayed slowing revenue growth. Q4 EPS was $0.14, beating the Street estimate of $0.11. Revenue came in at $1.3 billion (flat year-over-year), in line with the Street estimates. Daily active users (DAUs) increased 17% year-over-year to 375 million in Q4.
For Q1, the company anticipates DAUs to be in the range of 382-384 million. The company anticipates that the operating environment will remain challenging, as it expects the current headwinds (macroeconomic, platform policy changes, and increased competition) to persist throughout Q1.
The company didn’t provide Q1 guidance for revenue or EBITDA, but noted that it had observed a 7% quarter-to-date revenue decline and its internal forecast assumes a revenue drop in the range of 2%-10% year-over-year in Q1.
Snap Shares Plummet 10 percent on Slowing Revenue Growth