From CNBC:

Snap Inc. reported lower-than-expected revenue and a forecast just under Wall Street predictions. Earnings per share of 8 cents were higher than the expected 6 cents, while global daily active users reached 414 million, exceeding expectations. Revenue was $1.36 billion, lower than the estimated $1.38 billion.

Snap faced a downturn in the digital ad market and six consecutive quarters of slow growth or sales declines. It saw a 5% year-over-year revenue increase to $1.36 billion, attributing some weakness to the Middle East conflict. Sales are expected to grow 11% to 15% in the first quarter, less than analysts anticipated.

The company plans to cut 10% of its global workforce after a previous 20% reduction mid-2022. Net loss for the quarter decreased by 14% year over year, representing a loss of $248.2 million. The company disclosed a revenue run rate of $249 million for its Snapchat+ subscription service, which has 7 million subscribers.

Snap’s growth lags behind larger digital ad rivals like Meta, Amazon, and Alphabet. The company’s slower growth is reflective of ongoing struggles for smaller platforms to build substantial ad businesses. CEO Evan Spiegel attended a Senate Judiciary Committee hearing on child safety and technology.

The company is expected to release fourth-quarter earnings on Thursday.



Read more: Snap Q4 2023 earnings report