Snap reported higher revenues and narrowed profit losses in the fourth quarter, with more user engagement. The company said it continued to invest in its camera and augmented reality platforms and strengthened its ad platform, resulting in better outcomes for advertising partners. CEO Evan Spiegel noted the company delivered its first full year of adjusted EBITDA profitability, and it would build on its investments in AR, mapping and content to drive its ongoing growth. Snap gave a guidance going forward, after withholding forecasts for the past few quarters amid the coronavirus pandemic.
Snapchat had 265 million daily users in the quarter, from 249 million in the third quarter and up by 47 million or 22 percent year-on-year.
Revenues jumped 62 percent to USD 911.3 million from 560.8 million the year before, while the net loss narrowed to USD 113.1 million or USD 0.08 per share from a loss of 240.7 million and 0.17 per share . The adjusted EBITDA soared to USD 165.6 million from 42.3 million. The operating cash flow, still at minus, nevertheless improved to a negative USD 52.5 million from a negative 66.8 million the year earlier. The free cash flow also improved, to a negative USD 68.9 million from a negative 75.9 million.
For the full year, revenues went up 46 percent to USD 2.5 billion, the net loss narrowed to USD 944.8 million from a loss of over 1 billion, and the adjusted EBITDA leaped 122 percent to USD 45.2 million from a loss of 202.2 million.
For the first quarter of this year, Snap is guiding for revenues rising to USD 720-740 million from 462 million year-on-year, with the adjusted EBITDA loss at USD 70-50 million, from a loss of 81 million.
