Social Media Company Snap Misses Revenue Targets
Posted on 05/24/2022
Shares of Snap plummeted 30% in extended trading on May 23, 2022 after Snap CEO Evan Spiegel warned in a note to employees that the company will miss its own targets for revenue and adjusted earnings in the current quarter. Snap runs the Snapchat app. Snap went public in 2017.
“Today we filed an 8-K, sharing that the macro environment has deteriorated further and faster than we anticipated when we issued our quarterly guidance last month,” Evan Spiegel wrote in the note. “As a result, while our revenue continues to grow year-over-year, it is growing more slowly than we expected at this time.”
“We believe it is now likely that we will report revenue and adjusted EBITDA below the low end of the guidance range we provided for this quarter,” Evan Spiegel wrote in the May 23, 2022 update.
Spiegel indicated that 2021’s iOS privacy change continues to affect the company. The privacy change impacted the ad businesses of social apps like Snapchat and Facebook.
