Snap shares rallied 12% on Monday in response to an upbeat note from CEO Evan Spiegel to the social media company’s staff about the financial outlook for 2024.
As reported on Friday by the tech website The Verge, Spiegel told his colleagues that
Snap
(ticker: SNAP) is targeting better than 20% growth in full-year ad revenue in 2024, with more than 14 million Snapchat+ subscribers by the end of the year, and more than $500 million in non-ad revenue.
According to the report, Snap sees $500 million in 2024 adjusted earnings before interest, taxes, depreciation, and amortization, with positive free cash flow. Spiegel also said that Snap expects to top 475 million daily active users by the end of 2024, the website said.
Snap confirmed that Spiegel sent the emo to staff last month, laying out the company’s stretch goals. It declined to make a copy available to Barron’s.
RBC Capital analyst Brad Erickson pointed out in a research note that the company’s targets are well above previous Street estimates. The consensus had called for 13.5% revenue growth and $267 million of adjusted Ebitda, he said.
The Verge pointed out that Snap only hit one of its nine business goals laid out in the 2022 version of the letter
“The exhilarating rush of achieving stretch goals, of building things that matter, of surprising and delighting our community is at the heart of all that we do,” Spiegel wrote in this year’s letter, according to the Verge. “But some years, like this one, and the one before it, bring the bruising reality of missing our aspirations by a mile.”
Write to Eric J. Savitz at [email protected]
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