Snap Inc. stock fell more than 30% in Monday’s extended session when Snapchat Guardians said it would probably miss quarterly estimates because the economy “has deteriorated more and faster than expected.”
A filing states that it will report revenue and consistent EBITDA below the lower end of the second-quarter guidelines.
The company said in late April that it expects second-quarter revenue growth of between 20% and 25% per annum, and that EBITDA is between BreakEven and 50 million.
It reported second-quarter revenue of $ 982 million in 2021, and analysts surveyed by Factset expect second-quarter revenue of $ 1.2 billion in 2022.
As a result of the macroeconomic situation, “probably we will report revenue and consistent EBITDA below the lower end of our Q2 2022 guideline,” the company said in filing.
“We are excited about the long-term opportunity to grow our business,” the company said. “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 Wall Street Journal reported late Monday that Snap told employees it would slow down hiring and seek further cost savings. The year was an investment year, the company said in an internal memo, the journal said.
Shares of other ad-dependent technology companies also declined following the news of Snap with Meta Platforms Inc. FB.
Stocks down nearly 9% in late session, Pinterest Inc. PINS,
The stock fell 16%, and Twitter Inc. TWTR,
The stock is down about 4%.
Shares of Snap fell 3.4% to end regular trading days. The stock has lost 52% so far this year, compared to a fall of about 17% on the S&P 500 Index SPX.