the stock has sunk after
parent chat reported slowing sales and said it would not issue a forecast for its third-quarter performance.
The company’s second-quarter losses totaled $422.1 million, or 26 cents a share. Revenue rose 13% year-on-year to $1.11 billion, compared with a 38% year-on-year increase in the first quarter. Analysts polled by FactSet had expected a loss of 22 cents a share and revenue of $1.14 billion. Adjusted earnings before interest, taxes, depreciation and amortization were $7.2 million, beating estimates for a loss of $4.4 million.
Snap shares fell 25% in after-hours trading.
“While the continued growth of our community increases the long-term opportunities for our business, our financial results for Q2 do not reflect the size of our ambitions.” the company wrote in an investor letter. “We are not satisfied with the results we are delivering, despite the current difficulties.”
Investors have been watching closely to see how bad the Weak economy is influence advertising at Snapchat, the social media platform. Shares of parent company Facebook Meta . Platform 5% off in after-hours trading.
Concerns that a recession is underway and the continuing challenge of adjusting to
Year 2021 enhance privacy by making it more difficult for advertisers to track the actions of people online that have affected Snap stock this year. Shares have fallen 74% in the past 12 months.
In the MayThe company cut its financial forecasts, pointing out economic deterioration. It said adjusted earnings before interest, taxes, amortization and amortization will likely fall below the $0 to $50 million range that management has told investors to expect in April.
The company’s quarterly conference call has been set to begin at 5 p.m. ET.
Editing and Amplification: Snap will report its earnings on Thursday. The headline on an earlier version of this article incorrectly stated that the report would be today, Wednesday.
Write to Connor Smith at email@example.com