Snap misses Q2 revenue, refuses to predict future financial performance – sure naira

snap issued second-quarter earnings on Thursday missed analyst expectations. Revenue was $1.11 billion for the quarter, up 13 percent from the same period a year earlier, but fell short of previous expectations of 20 to 25 percent. Snap also declined to predict its future financial performance due to “uncertainties related to the business environment”. The company also reported that the number of daily active users increased 18 percent year-over-year to 347 million.

“While the continued growth of our community enhances long-term opportunities for our business, our second quarter financial results do not reflect the scale of our ambition,” the company said in a statement. a letter to investors. “We are not satisfied with the results we are delivering, regardless of the current headwinds.”

Snap noted that the second quarter of the year was more challenging than expected and that it now plans to “significantly slow our hiring, as well as operating expense growth.”

The results come as Snap said in May it would not meet the second-quarter guidelines it set the previous month. At the time, Snap also indicated that last year’s iOS privacy change continues to affect the company. Once iOS users were given the choice to opt out of off-app tracking, most users chose not to transfer more personal data to the apps they use, impacting the advertising activity of social apps such as Snapchat and Facebook.

While Snap continues to grow year on year, the company is growing more slowly than expected due to the general economic environment.

In an effort to boost revenue, Snap officially launched its paid subscription plan two weeks ago to offer users exclusive features like the ability to change the app’s icon and see who’s rewatched your stories. Snapchat+ costs $3.99 per month and unlocks a special badge, the option to pin a friend as your No. 1 friend, and the ability to “see the general direction of travel for where friends have recently moved.” The company says the latter feature is only available if your friends have already agreed to share their location.

The company also announced this month that it is introducing Snapchat for the web, which allows users to send photos and chat with friends via video calls, all from their desktop. While Snap still sees itself as a mobile-first platform, it decided it was time to bring Snapchat’s core features to the web after listening to user feedback.

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