Snapchat parent Snap reported its first ever quarterly profit – Quartz

For the first time in its 11-year corporate history, the company behind Snapchat had a quarterly profit.For the last two years, the company was making money on an “adjusted EBITDA” basis, a creative accounting measure that can remove select costs from the earnings equation. But in the fourth quarter of 2021, Snap turned a profit using GAAP measures, or Generally Accepted Accounting Principles. Snap earned $23 million in the quarter, compared with a loss of $113 million in the fourth quarter of 2020.Snap’s quarterly revenue, meanwhile, grew 42% year over year to $1.3 billion.A wild week for tech stocksThe news came amid a tumultuous week for social media stocks. Meta’s stock fell 25% on Feb. 3., erasing $237 billion worth of value, after the company announced that Facebook lost daily users for the first quarter in its history. Meta CEO Mark Zuckerberg pointed to the Chinese-owned app TikTok as its main competition.Meta’s news sunk the entire category of social media stocks: Twitter, Pinterest, and Google (which owns YouTube) all fell in regular trading hours on Feb. 3 before rebounding after hours. But Snap’s day was the most erratic. Its stock fell 24% during the regular session; after the bell, when…
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