Snap, the social media giant, experienced a significant boost in its shares on Monday, with a 12% rally. This surge came in response to an encouraging message from CEO Evan Spiegel to Snap's staff regarding the company's financial outlook for 2024.
The report also reveals that Snap foresees $500 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by 2024, along with positive free cash flow. Furthermore, Spiegel mentioned an expectation to surpass 475 million daily active users by the end of the year.
Snap confirmed that Spiegel communicated these ambitious goals to the staff last month, providing a clear vision for the company's future. However, it declined to release a copy of the exact message.
RBC Capital analyst Brad Erickson highlighted in a research note that Snap's targets exceed previous estimates from industry experts. Consensus predictions had projected a 13.5% revenue growth and $267 million adjusted EBITDA, which falls short of Snap's goal.
The Verge also pointed out that Snap had achieved only one out of nine business goals outlined in the previous year's letter. Despite this setback, Spiegel emphasized the company's commitment to pursuing stretch goals and making a meaningful impact on its community.
As Snap's shares see a surge following Spiegel's optimistic note, investors are eagerly anticipating the company's progress towards its ambitious aims for 2024.
