The share price of Snap, Inc (SNAP) closed the regular trading session at $24.50 with a decline of 23.60%. The share price kept oscillating between $25.70 and $24.51, during the previous traded session. At the last check, the stock price of SNAP gained 59.18% to $39.00, during after-hours. The gain in the stock price of SNAP came right after the release of the financial result for the fourth quarter of FY21, as the company reported a quarterly profit for the very first time.
Snap Inc is a camera platform, headquartered in Santa Monica, California, United States of America, with a market capitalization of $59.19 billion.
Financials – SNAP
Snap Inc released the financial report for the fourth quarter of FY21, on February 3, 2022.
- The revenue increased 42% to $1.29 billion in the fourth quarter, compared to the same period, last year.
- SNAP reported the net income to be $22.5 million.
- The company produced an EPS of $0.22, against the expectation of $0.06 per share.
- Adjusted EBITDA increased about 97% to $327 million in the fourth quarter of FY21.
The results were good news for the tech industry.
CEO’s Remarks
The Chief Executive Officer (CEO) of Snap Inc, Evan Spiegel, said that 2021 was an exciting year for them, making significant business growth and serving the global community. He further added that the strength of their business has enabled them to accelerate their investments in augmented reality (AR), transforming the way that the community experiences the world through cameras.
“We achieved adjusted EBITDA profitability for the second consecutive year; we recorded our first full year of positive free cash flow; and Q4 marked our first quarter of the positive net income.”, he spoke.
What is going on?
A day prior to SNAP’s financial results, the business monster Meta Platforms Inc. delivered its Q4 and FY21 financial results. Facebook revealed unimpressive growth in income during Q1 and FY22. The justification behind this is the current sensation TikTok. An ever-increasing number of individuals are investing their time in the video application TikTok.
