"We're Different from Meta" Snap Posts Strong Results but... "Uncertainty Remains"

[Asia Economy Reporter Myunghwan Lee] Snap Inc. (SNAP), a U.S. company operating the photo and video-focused social networking service (SNS) 'Snapchat,' posted results that exceeded expectations. The securities industry assessed that Snap's strong performance would have a positive impact on its stock price, although uncertainties remain.

According to the securities industry on the 6th, Snap recorded revenue of $1.3 billion (approximately 1.55 trillion KRW) in the fourth quarter of last year. This represents a 42% increase compared to the same period last year and surpassed the market forecast of $1.2 billion (approximately 1.43 trillion KRW). Following concerns over an earnings shock from Meta Platforms, Snap's stock price had fallen 24%, but after the market closed on the 3rd (local time), it surged about 56% in after-hours trading due to the better-than-expected results.

The increase in daily active users (DAU) and average revenue per user (ARPU) supported these results, according to the securities industry analysis. According to Samsung Securities, Snap's global DAU in Q4 was 319 million, up 20.4%. Global ARPU also rose 18.1% to $4.06 (approximately 4,870 KRW). Both DAU and ARPU showed growth exceeding market expectations. Samsung Securities analyst Youngjin Lee analyzed, "Growth in DAU outside North America and Europe was effective."

Samsung Securities assessed that Snap is recovering quickly from the adverse effects of Apple's mobile operating system iOS advertising policy changes. In April last year, Apple introduced the 'App Tracking Transparency' policy, requiring advertisers to obtain device user consent when collecting information such as search history and visited sites. If users do not consent, personalized advertising becomes impossible. Analyst Lee noted, "Recovery from the impact of Apple's policy changes in the direct response (DR) advertising sector is faster than expected."

He added, "The better-than-expected digital advertising content and results could positively affect the stock price," and "Strong demand from advertisers for augmented reality (AR) advertising, which Snap is focusing on, continues."

However, there is also analysis that uncertainties remain for Snap to deliver good results in the next quarter. Analyst Lee stated, "The impact of Apple's iOS (advertising policy changes) cannot be concluded from just one quarter's report card," and "To maintain the stock price uptrend, proof of three factors is necessary: user growth, platform competitiveness enhancement, and reduction of uncertainties in the advertising sector."

This content was produced with the assistance of AI translation services.