Shares of Snapchat’s parent company Snap rose more than 30% in late trading after the company said its second-quarter financial reports would disappoint Wall Street “because the macroeconomic environment is worsening faster than ever.”
Snap, filing an SEC filing Monday afternoon after the market closed, said earnings and adjusted EBITDA (gains from interest, taxes, depreciation and amortization) would be below the “lower end” of the investor-managed range. April. .
“We are excited about the long-term opportunity to develop our business. “Our community continues to grow and we continue to be heavily involved in Snapchat and have significant opportunities to increase our average long-term revenue per customer,” the company said.
On April 21, Snap said its daily active users rose 18% in the first quarter to 332 million, beating Wall Street targets. But the Santa Monica-based advertising-based company also noted economic challenges related to macro and supply chain issues, labor costs, and changes to Apple’s privacy policy.
The social media company behind Lenses suffered a net loss of $360 million from profits of $287 million a year earlier, while revenue rose 38% to $1 billion and fell short of targets.
The company previously said it expects revenue to increase 20% year over year in the current quarter, with Adjusted EBITDA estimated at $50 million. It did not provide us with a new measure.
Snap shares fell 3.40% to $22.47 at the end of today’s session, a sign of broader market growth. It lost a third of its value after the market, changing hands for just over $15.
The markets are extremely volatile and have dropped significantly recently. Friday night and today, the rally marks a 20% drop in the latest figures, nearly surpassing the official bear market announcement.
Source: Deadline
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