Snap Shares Plunge 25 Percent on Dismal Quarterly Earnings, Increasing Competition Slows Growth


Shares of Snapchat-parent Snap lost a quarter of their value in after-hours trades on Thursday following release of dismal quarterly earnings figures.

Snap reported that its loss in the recently ended quarter nearly tripled to $422 million (roughly Rs. 3,371 crore) despite revenue increasing 13 percent under conditions “more challenging” than expected.

“We are not satisfied with the results we are delivering, regardless of the current headwinds,” California-based Snap said in a letter to investors.

Snap share price was slightly above $12 (roughly Rs. 950) in the wake of the earnings report.

Snap told investors that policy changes have “upended” advertising industry standards while macroeconomic woes have disrupted industries that buy Snapchat advertising.

“We are also seeing increasing competition for advertising dollars that are now growing more slowly,” Snap said.

“Our revenue growth has substantially slowed, and we are evolving our business and strategy to adapt.”

The number of people using Snapchat daily grew 18 percent to 347 million from the same quarter a year ago, Snap reported.

Snap last month launched a subscription version of Snapchat as it looks to generate more money from the image-centric, ephemeral messaging app.

Snapchat+ is priced at $4 (roughly Rs. 400) a month and will provide access to exclusive features. It said that these would include priority tech support and early access to experimental features.

The subscription version of the service made its debut in Australia, Britain, Canada, France, Germany, New Zealand, Saudi Arabia, the United Arab Emirates, and the United States, Snap said.

Snap in February reported its first quarterly profit, but two months later warned that it saw the economic outlook as having darkened considerably.

Products You May Like

Articles You May Like

Looks like sex tech startup Lora DiCarlo is done for
Google CEO Sundar Pichai Pays Tribute to Indian Roots on Being Honoured With Padma Bhushan
Mozilla acquires Active Replica to build on its metaverse vision
WhatsApp Begins Beta Testing Android Tablet Support, iOS Testers Get ‘Search by Date’ Feature
The Callisto Protocol, NFS Unbound, More: December Games on PC, PS4, PS5, Switch, Xbox One, Xbox Series S/X

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.