Snapchat announced disappointing results for the second quarter, and said it plans to slow hiring, because it expects weak revenue growth, and the company confirmed that it has 347 million active users, daily, versus 344.2 million expected. Snapchat shares fell more than 25% in following-hours trading on Thursday.
The company incurred 422 million dollars in losses in the second quarter, and achieved 1.11 billion dollars in revenue, compared to 1.14 billion expected, and the stock achieved a loss of two years, compared to one cent that was expected.
Snap said it was not providing guidance for the third quarter because “the outlook remains very challenging.”
She explained that revenue in this period so far is “almost flat” compared to the previous year, while analysts expected sales growth of 18% for the third quarter, according to Refinitiv.
“We are not satisfied with our results, regardless of the current headwinds,” the company said in the letter.
In May, Snap said it would not meet the second-quarter guidance it set the previous month, sending the stock down regarding 43%. At the time, Snap indicated the macroeconomic environment was deteriorating much faster than expected.
“The second quarter of 2022 was more difficult than we expected,” Snape said following the results were announced. The company said it now plans to “significantly slow the rate of hiring, as well as the growth rate of operating expenses.”
“In some high-growth sectors, companies are reassessing investment levels amid rising costs of capital, which is further reflected in campaign budgets,” Snape added.
Earlier this week, Snap first launched Snapchat for Web, a desktop version of the Snapchat mobile app that people can use to send messages and make video calls with their Snap contacts.
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