‘We are not satisfied with the results.’ Snap stock tanks 25% after another disappointing quarter

By Clare Duffy, CNN Business

Snap’s rough year continues.

Shares of Snapchat’s parent company tanked more than 25% in after-hours trading Thursday after it posted even worse sales growth results for the three months ended in June than it had expected.

Snap last month warned investors that the economy had worsened faster than it expected, and said its revenue growth would likely be at the low end of its previous guidance, or around 20%. On Thursday, the company said revenue grew just 13% to $1.1 billion during the quarter.

Snap also posted a quarterly net loss of $422 million, compared to a $152 million loss in the same quarter last year. And daily active users grew 18% year-over-year to more than 347 million, a five percentage-point slowdown in growth rate from the year prior.

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.”

“The second quarter of 2022 proved more challenging than we expected,” the company said in the letter to investors. “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. We are not satisfied with the results we are delivering, regardless of the current headwinds.”

The company also declined to offer financial guidance for the current quarter, citing “uncertainties related to the operating environment.”

Even before the latest stock plunge, the company was struggling on Wall Street. 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.

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