SNAP - Snap CEO explains why he's 'excited about the results we saw in Q4'

2024-02-07 15:12:50 ET

Evan Spiegel – the chief executive of Snap Inc (NYSE: SNAP) says he’s “excited about the results we saw in Q4” even though his company’s stock is down more than 35% today following the poor quarterly print.

Highlights from Snap CEO’s interview with CNBC

The social media company also issued muted guidance for its current financial quarter as Invezz reported here .

Still, CEO Spiegel was positive in an interview with CNBC on Wednesday as the parent company of Snapchat is already seeing signs of improvement in advertiser performance.

I do think advertisers are looking for an alternative to these very large, big tech advertising companies.

Note that analysts at Morgan Stanley as well as JPMorgan maintained their “underweight” rating on after its earnings report. Their $11 price objective is roughly in line with where to stock is trading at writing.

Snap Inc is focusing on performance advertising

CEO Evan Spiegel also told CNBC today that Snap Inc will continue to invest aggressively in “direct response advertising” to capitalise on advertisers interested in diversifying their spend.

The chief executive dubbed performance advertising the “right place to focus” as it delivers “more resilient revenue growth”. Recent improvements made to the platform are attracting small and medium sized advertisers to Snapchat, he added.

Spiegel expects that “progress” to eventually result in “improved revenue trends”.

His forecast is for up to 15% annualised growth in revenue in Q1. Snap stock has now pared back its entire gain over the past three months.

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