The app actions of social Snapchat networking dropped dramatically after parent company Snap released disappointing numbers during the third quarter.
Shares of Snapchat were down about 25% in Thursday’s session after Snap reported slowest revenue growth to date and a much larger-than-expected loss during the third quarter.
“We found that our advertising partners in many sectors are reducing theirs budget of marketing, in particularly in the face of headwinds in the operating environment, cost pressures from inflation and rising costs, “the company said. in a letter to the shareholders.
Snap’s revenue increased 6% year-over-year in the fourth quarter to $ 1.13 billion. The growth rate in the first quarter of questyear was 38%.
The quarterly loss extended to $ 359.5 million, from about $ 72 million a year earlier.
Meanwhile, the number of daily active users has increased from 347 to 363 million in three months.
“This quarter, we have taken steps to focus our business on our three strategic priorities: growing our community and deepening its involvement in our products, re-accelerating and diversifying our revenue growth and investing in augmented reality,” he said. CEO Evan Spiegel in a note .
Snap’s share price fell in trading 25% after-hour at about $ 8. At the start of the year it was still over $ 40.
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