Snap Inc. released its Q4 and full-year 2022 earnings on Tuesday, reporting weaker-than-expected results. The Snapchat parent generated $1.30B in revenue in Q4, roughly the same amount reported in Q4 2021. Full-year revenue was $4.6B, up 12% YoY. Snapchat ended the year with 375 million daily active users, up 12% YoY. More: - The company posted a net loss of $288M for Q4, compared to a net income of $23M reported during the same period in 2021.
- Snap's annual net loss widened to $1.43B in 2022 from the $488M loss reported in 2021.
- Snap's subscription service, Snapchat+, had more than 2 million subscribers at the end of Q4.
- Snap shares fell more than 14% in extended trading on Tuesday.
- Share of Meta Platforms fell more than 1% in extended trading following Snap's earnings; Meta is set to report its earnings on Wednesday.
| |
Universal Music Group is exploring restructuring the industry’s current streaming economics and directing more money to artists. According to sources, the music company is in talks with several large streaming platforms about improving the current streaming reward incentives, including cracking down on bots used to inflate listening figures. More: - According to Beatdapp, a startup focused on identifying streaming fraud, about 10% of all music streams on U.S. platforms are fraudulent.
- Universal is also exploring options to limit or ban 31-second repetitive clips aimed at gaming the system to generate more streams to earn revenue.
- The company is also exploring a subscription tier for superfans that would charge fans more for exclusive perks from their favorite artists.
- Universal is the world’s largest music company and controls more than 30% of the music in the world.
- Universal artists include Taylor Swift, Bad Bunny, Sting, Ariana Grande, and Drake.
- Universal CEO Lucian Grainge, while addressing employees earlier this month, said the music industry needs a model that supports all artists, including DIY, indie, and major.
| |
 A message from 360LEARNING Why is it so hard to pick the right LMS? Fact: There are over 1,000 Learning Management Systems. Also fact: Picking the right one for your company is really hard to do. This checklist is here to help with: - Identifying training pain points
- Tips to assess business maturity and level of digital expertise
- The best content ideation and training delivery methods for you
- Which specific LMS features to look for
Increase your odds of choosing the right one. Identify what you need and want in an LMS before you even start looking with the LMS checklist from 360Learning. Get the checklist
| |
Spotify shares closed up more than 12% on Tuesday after reporting better-than-expected Q4 earnings. The music and podcast streaming platform generated €3.2B ($3.5B) in revenue, up 18% YoY. Revenue from its premium service grew 18% YoY to €2.7B, and ad-supported revenue rose 14% to €449M, driven by podcasts. More: - Spotify added 33 million monthly active users during the quarter to 489 million, up 20% YoY.
- Paid subscribers grew to 205 million, up 14% YoY.
- Spotify reported a gross profit of €801M, up 25% YoY, and an operating loss of $231M, from €7M reported during the same period in 2021.
- Spotify’s net loss ballooned to €270M, or €1.40 a share, from a net loss of €39M, or €0.20 per share, reported in Q4 2021.
- Full-year 2022 revenue came in at €$11.73B, up from 21% YoY.
- Net loss for the entire year was €430M, from €34M reported in 2021.
- Last week, Spotify announced it was laying off 6% of its global workforce, or about 600 workers.
| |
ExxonMobil released its Q4 and full-year 2022 earnings on Tuesday, posting a record profit of $56B for 2022. The oil giant generated $95.4B in total revenues in Q4 and nearly half a trillion dollars in total revenues for the full year 2022, beating its 2021 revenues and profits and its 2008 profit record. More: - Q4 EPS was $3.09 and $13.26 for the entire year, more than double full-year 2021 earnings.
- Exxon incurred a $1.3B charge in Q4 from an EU windfall tax targeting the oil giant’s record profits.
- Exxon is suing the EU, claiming the tax charge exceeds the union’s legal authority.
- The company reported $76.8B in cash flow from operating activities in 2022.
- Exxon produced 3.8 million barrels per day in 2022, up roughly 100,000 barrels per day from a year ago.
- Exxon shares closed at $116.01 on Tuesday, up more than 2% for the day.
| |
PayPal announced it is laying off about 7% of its global workforce, or 2,000 workers. CEO Dan Schulman pointed to the challenging macroeconomic environment, noting that the company has made substantial progress in focusing resources on core priorities and rightsizing its cost structure. However, there is still more work to be done. More: - In a note to employees, Schulman said the reductions would happen over the coming weeks, and the company would provide generous severance packages to impacted employees.
- PayPal is set to report its Q4 earnings on Feb. 9.
- The company joins a long list of tech layoff announcements in recent months.
- According to layoffs.fyi, tech firms have laid off more than 75,000 employees so far this year.
- PayPal shares closed at $81.49, up ~2% for the day.
| |
General Motors surpassed expectations for its Q4 and full-year earnings. The U.S. automaker reported $43.11B in Q4 revenue and $156.7B for the entire year. Q4 net income was $2B, or $2.12 a share, up from $1.7B reported in the same period last year. Full-year net income was $10B, or $5.59 a share. More: - The company incurred charges in the quarter of $511M related to its buyout program for its Buick dealers and $657M related to exiting its Russian operations.
- For 2023, GM expects net income between $8.7B and $10B.
- The company plans to cut costs by $2B over the next two years, with half of the savings expected this year.
- GM shares closed at $39.32 on Tuesday, up more than 8% for the day.
| |
Quick Hits - This year, try a resolution that sticks — going to therapy with BetterHelp. Save 25% off your first month.*
- The Eurozone economy grew 0.1% in Q4 from Q3; economists had predicted a 0.1% decline. The region's economy grew by 3.5% in 2022.
- Whole Foods has asked its suppliers to lower their prices to reflect the decline in inflation. Food suppliers raised prices in 2022, citing higher transport, labor, and production costs.
- Pfizer expects 2023 sales to fall between $67B and $71B. The pharmaceutical giant reported a record $100.3B in revenue in 2022.
- The White House plans to end the COVID-19 public health and national emergencies on May 11.
- McDonald's beat expectations in its Q4 earnings. The fast-food giant generated $5.93B in revenue and a net income of $1.9B, or $2.59 a share.
- Automation is your finance team's best productivity strategy. See five finance tasks you should be automating today.*
*This is a sponsored post.
| |
| |
 |  | Vanessa Omeokachie is a writer for Inside.com; she writes the daily Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, traveling, and exploring. Connect with her on Twitter @VanessaOmeo or on LinkedIn. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
360Learning is the LMS for collaborative learning that enables companies to upskill from within. | |
