The company said second-quarter financials would disappoint Wall Street “as the macroeconomic environment has become faster and worse than expected” after Snapchat’s original Snap shares rose more than 30% in late trading.
In an SEC filing Monday afternoon after the market closed, Snap said revenue and adjusted EBITDA (interest, tax, depreciation and earnings before payments) would come “below the range” that investors had indicated in April with its first quarterly numbers. .
“We are excited about the long-term opportunity to grow our business. Our community continues to grow, and we’re seeing strong engagement across Snapchat, and a significant opportunity to grow our average revenue per user in the long run, ”the company said.
Revenue rose 38% to $ 1 billion, well below the target, and the social media company behind the lens went into a net loss of $ 360 million from a profit of 7 287 million the previous year.
The company had previously said it would expect year-on-year revenue growth for the current quarter to be between 20% and 25%, with a consistent EBITDA break even and estimated at $ 50 million. It did not provide new metrics.
Snap stock closed 3.40% lower at $ 22.47 at the end of today’s session – which saw broad market growth. It dropped one-third of the market’s next price, changing hands at just 15 15.
Markets have been extremely volatile and have been declining sharply of late. An uptick between late Friday and today compressed an official beer market announcement – indicated by a 20% decline from the recent high.