• Cryptocurrency
  • Earnings
  • Enterprise
  • About TechBooky
  • Submit Article
  • Advertise Here
  • Contact Us
TechBooky
  • African
  • AI
  • Metaverse
  • Gadgets
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
  • African
  • AI
  • Metaverse
  • Gadgets
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
TechBooky
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

Snap Shares Decline 30 Percent After CEO Says The Company Will Miss Revenue And Earnings Estimates

Ibhadojemu Emmanuel by Ibhadojemu Emmanuel
May 24, 2022
in Uncategorised
Share on FacebookShare on Twitter

Shares of social media company Snap were down 30 percent in Monday’s extended trading after the company’s CEO Evan Spiegel sent a note to employees informing them that the company will miss its targets for revenue and earnings for the ongoing quarter.

The CEO also added that the company would reduce hiring through the end of the year as part of its strategy to manage its expenditures. The letter was also filed with the US Securities and Exchange Commission (SEC).

In the note, CEO Evan Spiegel wrote that “Today we filed an 8-K, sharing that the macro environment has deteriorated further and faster than we anticipated when we issued our quarterly guidance last month. As a result, while our revenue continues to grow year-over-year, it is growing more slowly than we expected at this time.”

The company reported its first-quarter earnings results last month.  Key margins such as profit, sales, and revenue growth fell short of expectations. Daily users, however, surpassed expectations – the company reported growth of 18 percent YoY.  For guidance, the company said it expected between 20% and 25% year-over-year growth in revenue. Snap said it expected adjusted earnings before interest, taxes, depreciation, and amortization of between $0 and $50 million. Snap Inc.’s CEO admitted that “the first quarter of 2022 proved more challenging than we had expected.” According to him, the challenges the company faced were caused by macroeconomic situations as well as advertisers who pulled the brakes on their campaigns after Russia invaded Ukraine back in February.

In the note the CEO sent to employees on Monday, he said that “We believe it is now likely that we will report revenue and adjusted EBITDA below the low end of the guidance range we provided for this quarter.”

Shares of other social media companies were also down following Snap’s announcement. Meta shares declined 7 percent in after-hours trading, while Twitter and Pinterest saw a decline of 4 percent and 12 percent respectively in trading hours.

Although the company will be slowing down on hiring, the company will continue to employ people and expects to hire 500 people by the end of the year, the CEO wrote in his note. In the last twelve months, the company has hired roughly 2,000 people.

The CEO also noted that the company is facing rising inflation, interest rates, and supply chain shortages. Apple’s iPhone privacy feature is also a source of challenge for the company just as the Russia-Ukraine war is taking its toll on the social media company and others. “Our most meaningful gains over the coming months will come as a result of improved productivity from our existing team members,” the CEO wrote.

Related Posts:

  • Snap Inc. Reports Disappointing Second Quarter…
  • elon-musk-solar-roofs1
    Roku Shares Plunge 25 Percent After Earnings Results…
  • Apple's Fiscal Fourth Quarter Results Surpasses All…
  • Snap Faces Investor Concerns As Q3 Revenue Declines
  • Nvidia Blames Lower Sales Of Its Gaming Products For Its Lower-than-expected Earnings Results
    Nvidia Blames Lower Sales Of Its Gaming Products For…
  • DocuSign Shares Decline After The Company Reports…
  • Nvidia Reports Better-than-expected Third-quarter Revenue
    Nvidia Reports Better-than-expected Third-quarter Revenue
  • Adam
    Snap Reports Disappointing Third-quarter Results,…

Discover more from TechBooky

Subscribe to get the latest posts sent to your email.

Ibhadojemu Emmanuel

Ibhadojemu Emmanuel

Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.

BROWSE BY CATEGORIES

Select Category

    Receive top tech news directly in your inbox

    subscription from
    Loading

    Freshly Squeezed

    • 22 Nigerian Banks Join PAPSS Cross-Border Payment System May 31, 2025
    • Nintendo’s Hardware Finally Matches Switch Ambitions May 31, 2025
    • Remita Intends To Expand to other African Nations May 31, 2025
    • Vitel Wireless Connects with All Major Nigerian Mobile Networks May 31, 2025
    • Walmart Spent $580M on Microsoft Azure in 11 Months, Leak Shows May 30, 2025
    • Texas Signs Internet Regulations Targeting Apple & Google May 30, 2025

    Browse Archives

    May 2025
    MTWTFSS
     1234
    567891011
    12131415161718
    19202122232425
    262728293031 
    « Apr    

    Quick Links

    • About TechBooky
    • Advertise Here
    • Contact us
    • Submit Article
    • Privacy Policy
    • Login

    © 2021 Design By Tech Booky Elite

    Generic selectors
    Exact matches only
    Search in title
    Search in content
    Post Type Selectors
    • African
    • Artificial Intelligence
    • Gadgets
    • Metaverse
    • Tips
    • About TechBooky
    • Advertise Here
    • Submit Article
    • Contact us

    © 2021 Design By Tech Booky Elite

    Discover more from TechBooky

    Subscribe now to keep reading and get access to the full archive.

    Continue reading

    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok