MMM: Meta Platforms, Snap, and Spotify Q1 2023 Earnings Results and Trends

Key Takeaways:

• Meta exceed street estimates on every metric in 1Q23 and also reported positive trends in user engagement attributable to Reels: Sensor Tower data corroborated strength in Meta app engagement during the quarter as hours engaged per day (per user) on Facebook Blue and Instagram increased 12% and 16% YoY in 1Q23, respectively

• Snapchat shares fell 20% on worse-than-expected 1Q23 revenue. Though the Snapchat app continues to see double-digit active user growth (reported in-line with ST estimates), Consumer Intelligence showed a 9% decline in YoY time spent per user

  • Further, per Pathmatics Advertising data eight of the top ten categories of US advertisers spending on Snapchat from 1Q22 decreased ad spend in 1Q23 by an average of 30% YoY

• Spotify’s reported 1Q23 earnings fell short on street estimates for revenue and EPS, but exceeded expectations on MAUs. Per ST estimates, worldwide Spotify MAUs in 1Q23 were up 3% QoQ (13% YoY) while reported MAUs and Premium Subscribers were up 5% QoQ (22% YoY) and 2% QoQ (15% YoY), respectively. Notably the app saw gains in engagement, with weekly sessions and average time spent per user on Spotify increasing 6% and 5% YoY, respectively, in 1Q23

• With ST’s proprietary device panel, digital activity can be broken down into two major buckets: desktop and mobile. Across the three largest US domestic air carriers (American, Delta and United), ST data indicates that from Dec’22 to Apr’23 there's been a clear mix shift toward desktop engagement. Though mobile continues to make up the majority of digital engagement for each carrier, desktop gained 11pps of share on United, and 9pps each on Delta and American

For more information, request the full report from reports@sensortower.com.