The company is normally one of the first of the social media firms to report second-quarter earnings and is viewed as a bellwether for similar stocks. It recently launched a premium service called Snapchat Plus, which costs $3.99/£3.99 a month and offers features such as the ability to message friends from your desktop.įacebook owner Meta, Google owner Alphabet and other companies that sell online ads lost about $80bn in combined stock market value on Thursday after Snap’s results. Advertising is Snap’s main source of revenue.

The California-based company said it would significantly slow hiring, invest in its advertising business and find new sources of revenue in order to grow at a faster pace. Mike Proulx, a research director at analysis firm Forrester, said: “While the platform’s user base remains strong, Snap’s ad-centric model is no longer a sure bet and is especially volatile heading into a period of economic headwinds where marketers are sure to pull back their ad spend.” Snap said revenue in the current third quarter was flat compared with the prior year.ĭaily active users on Snapchat rose 18% year-over-year to 347 million, beating consensus estimates of 344 million users. The figure grew 13% from the prior-year quarter. Snap’s revenue for the second quarter ending on 30 June was $1.11bn (£930m), missing analyst expectations of $1.14bn, which pushed its shares down by a quarter to $12.33.

Snap, which generates more than two-thirds of its revenue in North America, said some advertisers continued to face supply-chain disruptions and labour shortages, and many others were contending with rising costs amid record inflation, which has led to cuts in spending on advertising.

Snapchat share price