Summary: Snap shares jumped nearly 12% after CEO Evan Spiegel shared optimistic projections for 2024 with employees. The internal memo outlined expectations of over 475 million daily active users and advertising revenue growth of more than 20% for that year. Despite characterizing these projections as internal goals, Snap confirmed their validity. The company has faced challenges in the past year, including difficulties with online advertising and a decline in stock value. Snap’s third-quarter earnings report will be released on October 24.
Snap shares experienced a significant increase of nearly 12% following the revelation of strong 2024 projections by CEO Evan Spiegel. In an internal memo, Spiegel shared that the company is expected to surpass analysts’ projections by reaching more than 475 million daily active users in 2024. This was higher than the original estimate of 448 million. Additionally, the memo outlined a projected full-year advertising revenue growth of over 20% for 2024, surpassing the consensus expectations of just over 14%. The company confirmed the accuracy of these projections with CNBC but categorized them as ‘stretch, internal goals only.’ Despite the positive news, Snap has encountered challenges over the past year, struggling with its online advertising system following Apple’s privacy update and difficulties in the digital advertising economy. These factors led to a decline in Snap’s stock value. Nevertheless, analysts believe that as long as Snap performs well in its upcoming third-quarter earnings report, the stock could see a significant increase. The report is scheduled to be released on October 24.
Tags: Snap, Evan Spiegel, daily active users, advertising revenue, projections