Like much larger rivals, including Facebook and Google, Snap continues to operate in a difficult online ad market in which companies have reduced their marketing and promotional spend as the economy remains shaky. "We are working to accelerate our revenue growth and we are using this opportunity to make significant improvements to our advertising platform to help drive increased return on investment for our advertising partners," Snap CEO Evan Spiegel said in a statement. The company's free cash flow was $103 million in the first quarter, representing a nearly 3% year-over-year decrease. Snap's first-quarter revenue declined 7% from $1.06 billion during the year-earlier period, while the net loss narrowed from $359.6 million, or 21 cents per share, in the first quarter of 2022 to $328.7 million, or 22 cents per share. Analysts were estimating that second-quarter sales projections would be $1.10 billion. Personal Loans for 670 Credit Score or LowerĪlthough the company didn't provide official guidance for the second quarter, it said in a letter to shareholders that its "internal forecast" for revenue would be $1.04 billion, representing a 6% year-over-year decline. Personal Loans for 580 Credit Score or Lower “We are working to accelerate our revenue growth and we are using this opportunity to make significant improvements to our advertising platform to help drive increased return on investment for our advertising partners,” said Spiegel in a statement.Ī lot of these changes haven’t yet manifested into significant revenue dollars for the company, which at the end of the day is still struggling with its core ad business.Best Debt Consolidation Loans for Bad Credit Snap has also said subscribers, of which there are about 3 million today (barely 1% of daily active users), will gain access later this year to a feature that lets My AI reply to them with a visual Snap by generating an image based on the conversation.ĭuring the quarter, Snap also launched AR Enterprise Services, a new SaaS business, to sell its AR technology suite to other companies. The company offers a $4 per month subscription for Snapchat+, which offers features like custom notification sounds, story expiration controls, customizable chat wallpapers and more. Snap is also working to boost revenue from subscriptions. Snapchat subsequently saw a spike in one-star reviews as users trash-talked the chatbot and called for its removal. The company said users were sending more than 2 million messages a day to the bot, but that could just be the initial novelty factor unless the product improves. Last week, Snap launched its OpenAI-powered chatbot, My AI, that lets Snapchat users chat to the bot individually or with a group. The company is now pivoting toward more AI-focused endeavors. Larger companies like Meta are starting to see ad revenue rebound. The Facebook-parent company’s earnings Wednesday reported a revenue beat that suggests Meta is coming out of its downward slump and into revenue growth.Īs is becoming the norm in the tech industry, Snap has over the past year had to lay off staff and try to mitigate costs by slowing production on things like Snap-funded originals, minis and games, hardware and more. And as a smaller company that’s popular among Gen Z users, Snap faces competition from TikTok. Ad revenue for YouTube, for example, dropped 3% in the first quarter. The company is not the only one experiencing the impact of reduced digital ad revenue. Investors may purchase Snap-on stock and increase their investment through a no-commission dividend reinvestment and direct stock purchase plan sponsored by Computershare Trust Company, N.A., our transfer agent. It might also have something to do with the privacy changes Apple has made, which make it more difficult for advertisers to collect data and target ads. Snap attributed this downgrade to a “disrupted” demand for ads after making upgrades to the platform on which it sells ads. That’s down 7% from the same period last year, and it represents the first time since Snap went public that revenue fell. The company missed Wall Street revenue estimates of $1 billion, closing out the quarter with $989 million. Snap, the parent company of Snapchat, has seen its stock tumble 20% in after-hours trading after reporting first-quarter earnings Thursday.
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