Stock Market News

Snap misses revenue targets as growing competition slows growth, shares fall

2022.07.22 00:38

2/2
Snap misses revenue targets as growing competition slows growth, shares fall
FILE PHOTO: A woman stands in front of the logo of Snap Inc. on the floor of the New York Stock Exchange (NYSE) while waiting for Snap Inc. to post their IPO, in New York City, NY, U.S. March 2, 2017. REUTERS/Lucas Jackson

2/2

By Sheila Dang

(Reuters) -Snap Inc missed second-quarter revenue targets on Thursday as record-high inflation and increasing competition from rival apps like TikTok hurt advertising demand, but it reported higher user growth than Wall Street had expected.

Shares of Snap (NYSE:SNAP) dropped 21% in trading after the bell.

The Snapchat owner is the first of the major tech firms to report second-quarter earnings, and the results could be a bellwether of conditions also affecting Facebook (NASDAQ:META) owner Meta Platforms Inc, which reports results next week, and Twitter Inc (NYSE:TWTR), which reports on Friday.

“We are not satisfied with the results we are delivering, regardless of the current headwinds,” Snap said in prepared remarks released ahead of a conference call with analysts.

Revenue for the second quarter ended June 30 was $1.11 billion, an increase of 13% from the prior-year quarter. The figure missed analyst expectations of $1.14 billion, according to IBES data from Refinitiv.

Recent privacy changes on iPhones, macroeconomic challenges and increasing competition for advertising dollars all contributed to “substantially slowed” revenue growth, Snap said.

The Santa Monica, California-based company said it intended to significantly slow hiring, invest in its advertising business and find new sources of revenue, in order to grow at a faster pace.

Daily active users on Snapchat rose 18% year-over-year to 347 million, beating consensus estimates of 344 million users.

Snap said revenue so far in the current third quarter is flat compared with the prior year, but did not provide revenue guidance because “forward-looking visibility remains incredibly challenging.”

Investors are expecting the slowest-ever pace of growth for social media ad revenue this year, as increasing competition from TikTok and Apple Inc (NASDAQ:AAPL) in advertising could compound economic conditions.

Snap on Thursday also announced a share repurchase program of up to $500 million.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 84,543.65 1.81%
ethereum
Ethereum (ETH) $ 1,947.84 3.86%
tether
Tether (USDT) $ 1.00 0.01%
xrp
XRP (XRP) $ 2.37 3.22%
bnb
BNB (BNB) $ 629.04 5.12%
solana
Solana (SOL) $ 130.40 2.85%
usd-coin
USDC (USDC) $ 1.00 0.00%
cardano
Cardano (ADA) $ 0.727541 3.81%
dogecoin
Dogecoin (DOGE) $ 0.175658 4.20%
tron
TRON (TRX) $ 0.220134 2.99%
staked-ether
Lido Staked Ether (STETH) $ 1,945.01 3.89%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 84,376.61 1.77%
pi-network
Pi Network (PI) $ 1.34 3.61%
leo-token
LEO Token (LEO) $ 9.82 2.67%
chainlink
Chainlink (LINK) $ 14.16 5.35%
the-open-network
Toncoin (TON) $ 3.50 3.43%
stellar
Stellar (XLM) $ 0.27615 3.43%
usds
USDS (USDS) $ 1.00 0.00%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,331.55 3.84%
hedera-hashgraph
Hedera (HBAR) $ 0.194039 5.39%
avalanche-2
Avalanche (AVAX) $ 19.03 3.86%
shiba-inu
Shiba Inu (SHIB) $ 0.000013 0.97%
sui
Sui (SUI) $ 2.37 6.22%
litecoin
Litecoin (LTC) $ 93.57 4.36%
mantra-dao
MANTRA (OM) $ 7.03 3.13%
bitcoin-cash
Bitcoin Cash (BCH) $ 341.53 2.49%
polkadot
Polkadot (DOT) $ 4.42 4.42%
ethena-usde
Ethena USDe (USDE) $ 0.999738 0.01%
weth
WETH (WETH) $ 1,947.40 3.81%
bitget-token
Bitget Token (BGB) $ 4.44 1.64%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.20%
hyperliquid
Hyperliquid (HYPE) $ 13.63 3.49%
whitebit
WhiteBIT Coin (WBT) $ 28.58 0.61%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,069.18 3.83%
monero
Monero (XMR) $ 211.99 0.19%
uniswap
Uniswap (UNI) $ 6.38 5.03%
susds
sUSDS (SUSDS) $ 1.04 0.10%
aptos
Aptos (APT) $ 5.41 5.31%
dai
Dai (DAI) $ 0.999668 0.05%
near
NEAR Protocol (NEAR) $ 2.68 6.89%
okb
OKB (OKB) $ 50.46 3.21%
pepe
Pepe (PEPE) $ 0.000007 13.27%
internet-computer
Internet Computer (ICP) $ 6.02 8.25%
mantle
Mantle (MNT) $ 0.829591 1.46%
ondo-finance
Ondo (ONDO) $ 0.881944 7.70%
ethereum-classic
Ethereum Classic (ETC) $ 18.04 3.55%
gatechain-token
Gate (GT) $ 22.01 3.68%
tokenize-xchange
Tokenize Xchange (TKX) $ 32.96 10.69%
aave
Aave (AAVE) $ 176.69 7.07%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 84,580.66 1.94%