Shares of Snap Inc. (NYSE: SNAP) inches down in pre trading session on Monday as the firm released that financial results for the quarter and full year ended December 31, 2022.
CEO of firm, Evan Spiegel stated that they finished a difficult 2022 with 375 million Daily Active Users, 12% year-over-year revenue growth, and positive full-year Free Cash Flow. They face significant headwinds as they seek to accelerate revenue growth, but they are making progress in driving improved return on investment for advertisers and innovating to deepen community engagement.
In the fourth quarter, their subscription service Snapchat+ had over 2.0 million paying subscribers. Snapchat+ provides subscribers with over 12 exclusive features, including exclusive, experimental, and pre-release features, and in Q4 we launched new features such as Custom Story Expiration and Custom Notification Sounds. The company increased the accessibility of the Conversions API (CAPI) by allowing access through four new third-party partners, bringing the total to 12 by the end of the year, making CAPI more accessible to all advertisers on our platform.
The launch of our partnership with BigCommerce has accelerated our commerce integrations, allowing tens of thousands of merchants to seamlessly sync catalogs and run Dynamic Ads. Smartly.io has been partnered with the firm to unlock growth and drive performance through real-time automation. Brands can tap into their automated ads by scaling thousands of targeted versions using Smartly.io’s creative and campaign management tools.
Thousands of brands continued to invest in their organic Snapchat presence through Public Profiles for Businesses in order to build deeper connections, grow their audience, and organic engagements.
CEO Evan Spiegel said on a conference call with analysts Tuesday that it appears that advertising demand hasn’t really improved, but it hasn’t gotten significantly worse either. Their partners are simply managing their spending very carefully in order to respond quickly to any changes in the environment.
Snap was the first of the group to report fourth-quarter earnings, which included the holiday shopping season. Revenue of $1.3 billion was flat year on year, marking the company’s first-ever flat quarter. Snap dropped 16% in extended trading, dragging Facebook parent Meta and Pinterest Inc down with it.