Snapchat last month launched a subscription service called Snapchat+ that could represent a new revenue driver for the company. In an effort to fuel faster growth, the company said it plans to find new sources of revenue, in addition to investing in its existing products and platforms and its direct-response advertising business. “We are working to reaccelerate growth and take share, but we believe it will likely take some time before we see significant improvements,” Snap said in Thursday’s investor letter. Snap’s stock was already down 65% since the start of this year, after it also missed sales and profit estimates for the first quarter. It added that thus far in the third quarter, revenue is approximately flat on a year-over-year basis.Įven before the latest stock plunge, the company was struggling on Wall Street. The company also declined to offer financial guidance for the current quarter, citing “uncertainties related to the operating environment.” However, the company noted in its shareholder letter that it expects daily active users in the third quarter to be around 360 million, which would mark around 18% year-over-year growth, a deceleration in growth from the prior-year quarter. We are not satisfied with the results we are delivering, regardless of the current headwinds.” “While the continued growth of our community increases the long-term opportunity for our business, our financial results for Q2 do not reflect the scale of our ambition. “The second quarter of 2022 proved more challenging than we expected,” the company said in the letter to investors. In a letter to investors on Thursday, the company pointed to “a series of significant headwinds,” including broader issues with the economy and “increasing competition for advertising dollars that are now growing more slowly.” It also hinted at the impact of changes to the Apple app store’s tracking practices, which have upended much of the digital advertising world.
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