Snap Q1 earnings report 2025

Snap reported better-than-expected first-quarter revenue Tuesday but declined to provide guidance, citing macroeconomic uncertainties that could weigh on advertising demand.

Shares dropped 13% in after-hours trading.

Here is how the company did compared with Wall Street’s expectations:

• Earnings per share: Loss of 8 cents. That figure is not comparable to analysts’ estimates.
• Revenue: $1.36 billion vs. $1.35 billion expected, according to LSEG 
• Global daily active users: 460 million vs. 459 million expected, according to StreetAccount
• Global average revenue per user: $2.96 vs. $2.93 expected, according to StreetAccount

Snap did not offer an outlook for the second quarter, citing uncertainties surrounding “how macro economic conditions may evolve in the months ahead, and how this may impact advertising demand more broadly.”

Analysts had expected $1.39 billion in second-quarter revenue guidance. The company said it expects the number of daily active users to come in near the midpoint of its second-quarter range at 468 million.

“While our topline revenue has continued to grow, we have experienced headwinds to start the current quarter, and we believe it is prudent to continue to balance our level of investment with realized revenue growth,” the company said in a letter to investors.

Similar to many tech companies, Snap is facing a turbulent macro setup as it grapples with President Donald Trump’s evolving trade plans. Many fear that global trade uncertainty might lead companies to lower guidance or pull back spending this earnings season.

Snap cited potential constraints on advertising demand as the reason for holding off on guidance. Ad revenues for the period rose 9% year over year to $1.21 billion. That growth came mainly from direct response advertising. The company also said brand-oriented advertising revenue dipped 3% from a year ago.

Derek Andersen, Snap’s finance chief, said during an earnings call that some advertisers have reported an impact from changes to the de minimis exemption that is scheduled to end Friday. Shipments under $800 can come into the U.S. duty-free under the current loophole.

The company isn’t alone. Last Thursday, Alphabet reported first-quarter sales of $90.23 billion, which surpassed Wall Street expectations, but executives told analysts that the company may experience headwinds to its online ad business in the Asia-Pacific region also related to the de minimis loophole ending.

Snap lowered its full-year adjusted operating expenses range to between $2.65 billion and $2.70 billion, down from between $2.70 billion and $2.75 billion. The company also revised its full-year cost guidance for stock-based compensation downward to between $1.13 billion and $1.16 billion, from $1.15 billion to $1.20 billion.

Sales…