Snapchat turns a profit for the first time

Snap, which operates Snapchat, posted its financial results for the last months of 2021 and made a profit for the first time in a quarter. This has never happened since the company went public.

Profits for Snapchat, a first

Snap’s revenue in the fourth quarter of 2021 was $1.3 billion, up 42% from the same period a year earlier. Net profit was $22.55 million, compared to a loss of $113.1 million previously. Earnings per share are 22 cents. By comparison, analysts were expecting revenue of $1.2 billion and earnings per share of $3.79. Also, the average revenue per user (ARPU) this time is $4.06. Analysts expected $3.79.

Snap also provided a Q1 2022 guidance range of $1.03 billion to $1.08 billion in revenue, higher than analysts’ forecast of $1.01 billion.

319 million counter users

On the other hand, Snapchat now has 319 million users, an increase of 20% year-on-year. Analysts expected 316.9 million users. As of the current quarter, Snap is targeting between 328 and 330 million users on Snapchat. This is again higher than the expectations of the markets, which rely on 327.8 million users.

For the full year 2021, Snap reported revenue of $4.12 billion, up 64% from 2020. Losses were $487.96 million, against losses of $944.84 million in 2020.

“2021 has been an exciting year for Snap and we have made significant progress in growing our business and serving our global community,” said executive Evan Spiegel. “The strength of our core business has allowed us to accelerate our investments in augmented reality, transforming how the Snapchat community experiences the world through our camera.”

In view of the very good results, the action in post-session on the Stock Exchange is up 39.14% to 34.09 dollars.