Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Snap: Continued Challenges with Weak Monetization and Cost Battles – What’s the Bottomline Impact, Outlook & its Key Catalysts ?
Snap Inc. (SNAP) delivered a solid Q3 2024 performance, with 15% YoY revenue growth to $1.37 billion, surpassing expectations by $14.51 million, driven by strong execution in Direct Response (DR) advertising (+16% YoY) and Snapchat+ subscriptions, which more than doubled YoY to contribute $123 million in revenue. Adjusted EPS of $0.08 exceeded estimates by $0.03, while Daily Active Users (DAUs) rose 9% YoY to 443 million, with international markets like Rest of World (+15% QoQ) and Europe (+2% QoQ) driving growth. Engagement improved, with global time spent watching content up 25% YoY, reflecting Snap’s success in leveraging AI-driven content discovery. However, challenges persist, including a 7% YoY decline in eCPMs as impression growth outpaced ad demand and brand-oriented advertising softness (-1% YoY) in discretionary categories. Infrastructure costs per DAU increased to $0.84, highlighting ongoing investment in AI and ML. Forward guidance for Q4 2024 reflects cautious optimism, with revenue expected to grow 11–15% YoY to $1.51–$1.56 billion, supported by DR ad innovations and a growing SMB advertiser base. While Snap’s long-term potential lies in AR advancements, GenAI tools, and monetization of Simple Snapchat, near-term profitability pressures and flat North American DAU growth limit upside. Can Snap’s AI-driven innovation and evolving DR ad strategy sustain growth amid macro and competitive pressures?
