Snap says it will miss its own revenue targets as the economy deteriorates faster than expected.
The social media company in April said it expected between 20% and 25% full year growth in revenue.
However, the company has wound that back, saying:.
“Since we issued guidance on April 21, 2022, the macroeconomic environment has deteriorated further and faster than anticipated.
“As a result, we believe it is likely that we will report revenue and adjusted EBITDA below the low end of our Q2 2022 guidance range.
“We remain excited about the long-term opportunity to grow our business. Our community continues to grow, and we continue to see strong engagement across Snapchat, and continue to see significant opportunities to grow our average revenue per user over the long term.”
CEO Evan Spiegel reportedly told employees in a note that he was slowing hiring.
“Our most meaningful gains over the coming months will come as a result of improved productivity from our existing team members,” Spiegel said.
He says the company faces inflation, rising interest rates, supply chain issues, the impact of Apple’s iPhone privacy moves and a negative impact from the war in Ukraine.
Snap shares are down and the news has impacted other advertising supported platforms such as Meta and Twitter.
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