Snap(SNAP-US) on Monday (23rd) warned that due to the rapidly deteriorating economic outlook, this quarter’s revenue and profit performance may be lower than forecasts, and the stock price plummeted more than 30% following the market.
Snap said in an internal memo that the company continues to face factors such as rising inflation and interest rates, supply chain, platform policy changes, and the Russian-Ukrainian war. The overall economic environment is deteriorating faster than expected. Revenue and adjusted EBITDA this quarter It may be lower than the low end of the forecast range.
When Snap released its earnings report last month, it expected Q2 revenue to increase by 20% to 25% annually, and adjusted EBITDA was estimated to be between breakeven and $50 million.
Like rivals such as Meta and Twitter, Snap plans to slow down hiring to save money, but it will continue to hire new employees, with an estimated 500 more this year.
Snap closed down 3.4% at $22.47 a share on Monday, as the company’s bearish outlook on the outlook sent shares tumbling 31% to $15.55 a share in following-hours trading.
Other social platforms that also rely on digital have also suffered, Pinterest (PINS-US) tumbled 12.4% following hours, Meta (FB-US) fell 7.5%, Twitter (TWTR-US) fell 3.6%.
