![]() Snap attributed its disappointing results to slowing demand for its online ad platform. The company said it now plans to "substantially slow our rate of hiring, as well as the rate of operating expense growth." "The second quarter of 2022 proved more challenging than we expected," Snap said in the investor letter. At the time, Snap cited a macroeconomic environment that was deteriorating much faster than expected. In May, Snap said it wouldn't meet the second-quarter guidance it set the prior month, leading to a 43% plunge in the share price. It's the latest chapter in a tough year for Snap, whose stock has lost almost two-thirds of its value in 2022. "We are not satisfied with the results we are delivering, regardless of the current headwinds," the company said in the letter. Analysts were expecting sales growth of 18% for the third quarter, according to Refinitiv. In its investor letter, Snap said it's not providing guidance for the third quarter because "forward-looking visibility remains incredibly challenging." The company said that revenue so far in the period is "approximately flat" from a year earlier. Global Daily Active Users (DAUs): 347 million versus 344.2 million expected, according to StreetAccount.Revenue: $1.11 billion versus $1.14 billion expected, according to Refinitiv.Earnings per share: A loss of 2 cents, adjusted, versus expected loss of 1 cent, according to a Refinitiv survey of analysts.Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower The company also shelved several projects during the year, including its photo-taking drone and Snap Originals premium shows.Best Debt Consolidation Loans for Bad Credit Snap announced in August it would lay off 20% of its workforce of over 6,000 employees. But its simplicity also meant that companies could quickly pause campaigns in such a way as to severely affect Snap's finances. Snap debuted its subscription service last summer, pitching it as a way for users to access pre-release and exclusive features for $3.99 a month.Īs executives told analysts several times last year, the company's online ad platform was built to be easy to use and to enable brands to quickly launch campaigns. It said its Snapchat+ service now has over 2 million paying subscribers as of the fourth quarter. The company said it's refocusing investments to concentrate on growing its community and engagement, accelerating and diversifying its sales growth and developing augmented reality technologies. The stock has recouped some of its losses, rising 29% in January, along with a broader rally in the tech sector. Snap's stock plummeted 81% last year as the Nasdaq Composite had its worst year since 2008. Pinterest, which releases results next week, fell almost 5%. ![]() Meta shares dropped 2% after Snap's report. Facebook parent Meta reports fourth-quarter results on Wednesday, followed by Google parent Alphabet and Amazon on Thursday. Investors will get a clearer picture of the state of that market later this week. It's an ominous start to fourth-quarter earnings season for ad-supported internet companies. ![]() ![]() Best Debt Consolidation Loans for Bad Credit ![]()
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