Snap Inc.’s stock price plunged more than 30% in after-hours trading on Tuesday after the social media company reported lost revenue and gave a disappointing outlook, a day after announcing yet another deep layoff.
The results come a week after Facebook parent company Meta Platforms Inc.’s META.
and GOOGL, Google’s parent company.
Google,
Alphabet Inc. posted unusually strong digital advertising sales.
snap recorded Net loss was $248.2 million, or 15 cents per share, compared to net income of $288.5 million, or 18 cents per share, in the same period last year. Adjusted earnings were 8 cents per share.
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Revenue improved to $1.36 billion from $1.3 billion in the year-ago period.
Analysts surveyed by FactSet had expected adjusted earnings of 6 cents per share on revenue of $1.38 billion.
“While we are encouraged by the progress of our advertising platform and the improved results we are delivering to many of our advertising partners, we estimate that the outbreak of conflict in the Middle East was a year-over-year headwind. is expected to grow by approximately 2 percentage points,” the company said in a statement. letter To all investors.
For the current first quarter, Snap expects revenue to be in the range of $1.095 billion to $1.135 billion. FactSet analysts on average expected first-quarter sales of $1.12 billion.
Even more alarming, Snap warned that first-quarter adjusted EBITDA would be between -$55 million and -$95 million.
The results were announced amid severe tightening by the company.
Snap said on Monday that it will be closing approximately 5,288 employees “to best position our business to deliver on our top priorities and ensure our ability to make incremental investments to support long-term growth.” announced that it plans to reduce this by 10%. Snap announced 20% layoffs in August 2022.
read more: 10% of employees suddenly reduced as engineers continue to be laid off
Snap also reported a 10% increase in daily active users to 414 million.
Snap stock has increased 43% in the past 12 months. The broader S&P 500 index SPX is up 19%.
