5.9k Share this
Snap’s stock (NYSE: SNAP) has lost approximately 38% YTD as compared to the 12% drop in the S&P500 index over the same period. Notably, the benchmark index for the technology sector, the NASDAQ
SNAP is an American camera and social media company, which primarily generates revenue through advertising – Snap Ads and AR
The company’s total revenues increased 64% y-o-y to $4.1 billion in FY 2021. This was mainly driven by a 74% growth in the North American revenues, followed by a 45% rise in the international revenues. Further, DAUs grew from 265 million in Q4 2020 to 319 million in Q4 2021. Similarly, ARPU improved 18% y-o-y to $4.06 in Q4. Contrary to the growth in the top line, the company posted a loss in 2021. However, it was lower than the prior-year – down from $944.8 million to $487.9 million. The improvement was partly due to lower total costs & expenses as a % of revenues and partly because of other income of $240.2 million. The other income was mainly a result of realized and unrealized gains on strategic investments.
Altogether, Snap’s revenues are expected to touch $5.5 billion in FY2022. Further, its revenue per share is likely to be around $3.53, which coupled with a P/S multiple of 11x will lead to the valuation of $39.
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates