Summary: Snap reported a decline in revenue of up to 14% in Q4 2022, along with a loss of about 300,000 daily users, leading to a 15% drop in shares on Wednesday. The company expects a further decline of 2-10% in 2023 and has not given guidance on the future.
Snap saw a revenue decline of up to 14% in the fourth quarter of 2022 as ads revenue on Snapchat slump. Although, the company is not alone in suffering from declining digital ads revenue as we have seen others like Facebook and Google face similar troubles.
The media company made a revenue of $1.30 billion against the expected $1.31 billion. It appears to have lost about 300,000 daily users during the same period as well, which likely further contributed to its poor performance.
In a report, CNBC Tech points out that this is the third quarter report in a row that Snap is giving investors bad news about its earnings.
Also read:
–UK Set To Regulate Crypto After Seeing FTX’s Collapse
–Google Begins Testing ChatGPT AI Competitors In-House
–Starlink Now Available In Nigeria | See How To Setup, Price & More.
On Wednesday, Snap shares had fallen by 15% following its revenue posting. This domino effect is even better than its shares dropping by 39% after its Q2 2022 report and 28% after its Q3 results.
The company told investors that 2022 was a challenging year, mentioning ‘macroeconomic headwinds’, a term that is becoming commonplace among tech companies. It also refused to give guidance on what it expects to happen in 2023.
However, in an internal forecast letter, it expects a further decline of 2% and 10%, saying that the challenges from 2022 will remain throughout Q1 2023, at least.
In addition, Snap announced that its premium service, Snapchat+ now has more than 2 million paying subscribers. It charges each of these subscribers $3.99 per month and the service offers them features like ghost trails on the map, a pin for #1 best friend, story rewatch monitoring, custom app icons and themes, Snapchat+ badge, Snapchat for web, and more.
Snap was among the tech firms that laid off employees in 2022 firing 6,000 workers and shelving several projects. Yet, it hasn’t managed to turn its luck around.
For your daily dose of tech, lifestyle, and trending content, make sure to follow Plat4om on Twitter @Plat4omLive, on Instagram @Plat4om, on LinkedIn at Plat4om, and on Facebook at Plat4om. You can also email us at info@plat4om.com and join our channel on Telegram at Plat4om. Finally, don’t forget to subscribe to OUR YOUTUBE CHANNEL.
