Snap Stock Sinks On Q4 Earnings, Company Holds Back Guidance: What's Going On?

Snap Inc SNAP shares are trading lower in Tuesday's after-hours session after the company reported fourth-quarter results and withheld forward guidance, citing "uncertainties related to the operating environment."

What Happened: Snap reported fourth-quarter revenue of $1.3 billion, which was in line with average analyst estimates, according to Benzinga Pro. The company reported quarterly earnings of 14 cents per share, which beat consensus estimates of 11 cents per share.

Daily active users increased by 56 million, or 17% year-over-year, to 375 million. Snap said total time spent watching Spotlight content grew over 100% on a year-over-year basis.

Free cash flow totaled $78 million in the fourth quarter, down from $161 million in the prior year's quarter.

Check This Out: Trading Strategies For Snap Stock Before And After Q4 Earnings

"We continue to face significant headwinds as we look to accelerate revenue growth, and we are making progress driving improved return on investment for advertisers and innovating to deepen the engagement of our community," said Evan Spiegel, CEO of Snap.

Given uncertainties related to the operating environment, Snap refrained from providing revenue and adjusted EBITDA guidance for the first quarter. The company said it remains focused on expanding and diversifying its revenue growth. 

Snap will hold a conference call to discuss these results at 5:30 p.m. ET.

See Also: Snapchat Growth Slowed Last Quarter: Apptopia Data

Snap is a technology company that believes the camera presents the greatest opportunity to improve the way people live and communicate.

SNAP Price Action: Snap has a 52-week high of $41.97 and a 52-week low of $7.33.

The stock was down 15.5% in after-hours at $9.78 at the time of writing, according to Benzinga Pro.

Photo: Stock Catalog from Flickr.