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HomeNEWSSnapchat reported less revenue forecast for Facebook and Twitter? • Wisetrendz

Snapchat reported less revenue forecast for Facebook and Twitter? • Wisetrendz

The Snapchat social network revenue report for the second quarter of 2022 was released, and although there was a 13% growth, the figure was lower than expected. As a direct consequence of not having achieved its objectives, the company’s shares fell 21% on the New York Stock Exchange.

Rising inflation and increased competition, such as TikTok, would be the main causes of this result, according to company representatives. Snapchat is the first to report its advertising revenue for this quarter. So this result could be a gauge for Twitter reports on Friday and Facebook (Meta) expected next week. The company’s representatives were dissatisfied because until June 30 the company had profits of 1.11 billion dollars (13% more than the previous year). But it fell short of expectations of $1.14 billion.

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Part of Snap’s explanation, the slow growth is due to recent changes in Apple’s privacy policies, as well as macroeconomic challenges and growing competition for advertising. Due to the slower results, Snap announced that it will take measures such as significantly reducing hiring and investing in its advertising business to get new sources of income. An interesting and encouraging fact is that Snapchat’s daily active users grew 18% year over year to 347 million, beating forecasts of 344 million.

Regarding the third quarter that is underway, Snap announced that so far the numbers look flat compared to the previous year, without giving more details about it. Investors generally expect a slower pace of ad revenue growth this year across all social networks, and competition between TikTok and Apple could aggravate competition.

Image: Thought Catalog on Unsplash

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