Live updates: Russia turns to broken equipment to shore up depleted resources, UK MoD says
Snapchat’s parent company has seen a slowdown in ad growth in response to the war in Ukraine, which is one of many macro concerns that could weigh on its revenue outlook in the coming months.
Los Angeles-based Snap said that prior to Russia’s February 24 invasion of Ukraine, year-over-year revenue growth in the quarter was 44%, which ” exceeded” his expectations. A “large number” of advertisers then suspended their campaigns after the invasion.
The majority of clients resumed their campaigns “within 10 days” of the invasion, CFO Derek Andersen said Thursday, but year-over-year revenue growth of 32% remained below pre-invasion levels for the rest of the year. the first quarter.
Anderson said ‘macro headwinds’, such as supply chain disruptions, labor shortages, rising interest rates and inflationary pressures, have been further complicated by the war. and remain challenges in the current quarter.
The war’s impact on “input costs, marketing budgets and overall economic confidence was significant,” Andersen said. “The operating environment ahead could be even more challenging, resulting in further campaign pauses or advertiser budget cuts.”
Snap’s revenue forecast will grow 20-25% year on year in the current quarter, below analysts’ expectations of 28%. Revenue rose 38% to $1.06 billion in the first quarter, slightly beating Wall Street’s forecast of $1.07 billion.
Snap’s net loss widened to $360 million in the first quarter from $287 million a year ago, mostly due to higher costs. Analysts forecast a loss of $29 million.
On a positive note, Snap’s daily active users grew 18% to 332 million in the first quarter, beating analysts’ expectations for 329 million. The company guided between 343 and 345 million DAUs in the current quarter, above Wall Street forecasts for around 340 million.
The shares rose 1% in after-hours trading, but swung between negative and positive territory.