Earnings Results: Snap posts surprise revenue growth, but Israel conflict is making advertisers skittish

by | Oct 24, 2023 | Stock Market

Snap Inc. shares tend to swing wildly after earnings reports, but the reaction looks unusually muted after Tuesday’s results. That’s not because the latest numbers were lacking in developments. Rather, Wall Street seems to be weighing a long-awaited improvement in business trends during the most recent quarter against some more ominous signals that emerged after it ended.

broke a streak of revenue declines Tuesday as it sported 5% growth on the top line for its latest quarter. The company noted that new brand-advertising products were seeing nice uptake. At the same time, the company sounded a more measured tone about the current quarter, owing in part to the conflict in the Middle East. Snap “observed pauses in spending from a large number of primarily brand-oriented advertising campaigns immediately following the onset of the war in the Middle East, and this has been a headwind to revenue quarter-to-date,” the company said in its earnings release. “While some of these campaigns have now resumed, and the impact on our revenue has partially diminished, we continue to observe new pauses and the risk that these pauses could persist or increase in magnitude remains.” See also: Google parent Alphabet’s business growth is fastest in more than a year on advertising rebound The company added that it would be “imprudent to provide formal guidance for Q4” given the war in the Middle East, though it did share that its that its internal forecasts assume $1.320 billion to $1.375 billion in revenue, where …

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