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Snap Posts Q4 Beat and Light Q1 Outlook as DAU Slips, Announces $500 Million Buyback

Rising competition plus an unresolved Perplexity rollout push a shift toward more profitable, diversified revenue.

Overview

  • Revenue reached $1.72 billion in Q4, up 10% year over year and slightly above estimates, with net income of about $45 million and adjusted EBITDA of $358 million topping projections.
  • Snap guided first‑quarter revenue to $1.50–$1.53 billion, below consensus, while projecting adjusted EBITDA of $170–$190 million, which is above expectations.
  • Global daily active users fell to 474 million, down 3 million sequentially, as reduced growth marketing and Australia’s new age checks led to the removal of roughly 400,000 accounts.
  • Subscriptions continued to scale, with Snapchat+ and Memories Storage Plans reaching 24 million subscribers, up 71% year over year, alongside growth in newer ad formats and a 28% increase in active advertisers.
  • The company formed Specs Inc. to develop augmented‑reality glasses as it prepares a commercial push, and its outlook excludes potential revenue from the Perplexity integration due to the lack of a broader rollout agreement.