Snap’s shares surged by nearly 12% on Monday after news of an internal CEO memo hinting at better-than-expected results for 2024. Evan Spiegel, the co-founder and CEO of the company, communicated in a memo sent in September that they might exceed 475 million daily active users in 2024, surpassing analysts’ projections of 448 million.
The memo also indicated that the full-year advertising revenue growth for 2024 could be over 20%, which is notably higher than the consensus expectations of just above 14%. Furthermore, the memo outlined a target of $500 million for adjusted EBITDA in 2023, a figure that Bernstein characterized as a “significant outperformance” compared to the current analyst projections of $250 million.
Snap clarified that these were “ambitious, internal goals only.” Schilsky advised the company to refrain from disclosing such objectives in employee memos and expressed concern about their public release.
Snap has faced a challenging year, like other social media companies such as Meta and Pinterest. It has struggled to adapt its online advertising system in the wake of Apple’s 2021 iOS privacy update, which reduced its ability to track users for targeted advertising.
In addition, Snap has faced challenges in the digital advertising landscape due to companies scaling back their marketing efforts amid economic uncertainty. Snap’s shares dropped more than 17% in July after providing guidance for the current quarter that fell short of analysts’ expectations.
Schilsky wrote, “The stock is near the lows, expectations are incredibly low (although perhaps that changed after this leak), and the digital ad market is generally doing quite well. As long as SNAP doesn’t completely whiff the quarter as it has for the past five, the stock could jump (squeeze?) materially higher on the next print.”
Snap is scheduled to report its third-quarter earnings on October 24.
Have you read?
Report: Türkiye Citizenship by Investment Programme, 2023.
Report: Vanuatu Citizenship by Investment Programme, 2023.
Report: CEO approval rating index, 2023.
PR for CEOs is Critical for Brand Success: Top PR Firms for CEOs.
Report: Top CEOs With The Highest Average Yearly Bonus, 2023.
Add CEOWORLD magazine to your Google News feed.
Follow CEOWORLD magazine headlines on: Google News, LinkedIn, Twitter, and Facebook.
Copyright 2024 The CEOWORLD magazine. All rights reserved. This material (and any extract from it) must not be copied, redistributed or placed on any website, without CEOWORLD magazine' prior written consent. For media queries, please contact: info@ceoworld.biz
