Here Is What You Should Expect From Snap Earnings

Happy Tuesday and welcome to an extremely interesting earnings day. Two companies of note to us will report after the bell: Apple and Snap. One will make a lot of money, while the other will lose a lot of money. Can you guess which is which?

Correct, Snap will detail another period of deficits, but that’s almost beside the point. No one expects it to make money (yet). Instead, Snap’s user growth, revenue expansion, and cost control will be under the microscope.

So, before the market’s close (hell, they just opened), here’s a teaser of what to expect.

According to the analysts summed by the fine folks over at Yahoo Finance, here are the average expectations for the firm’s quarter:

• Revenue of $243.55 million ($149.65 million in the year-ago quarter)
• Per-share adjusted losses of $0.17 (-$0.20 in the year-ago quarter, adjusted)

In that year-ago quarter, Snap’s operating expenses totaled $196 million, while its gross profit was negative when share-based compensation expenses were included. That’s the baseline that Snap investors will measure from.

User growth is also on the menu. Snap’s decelerating user growth has weighed on its share price. However, during Q4’2017, new users got back to speed, as the LA Times reported at the time:

Snap’s flagship app, Snapchat, added 8.9 million daily active users in the quarter that ended Dec. 31. That’s the largest jump since the third quarter of 2016. The company now has 187 million daily active users, surpassing analysts’ estimates of 184 million.

That got investors more than excited. If Snap can meet financial expectations and beat on user growth, it could put up back-to-back earnings wins. Given recent layoffs, such a result could do wonders for morale.

All this is even more exciting as Twitter recently reported real GAAP net income during its Q1’2018 earnings download. Meanwhile, Facebook is heading into its own F8 conference after strong earnings and nearly infinite troubles.

So keep your eyes peeled after the bell. We’re counting down until Snap tells us more.