Shares of Snapchat parent Snap are more than 30% in late trading after the company said second quarter financials will disappoint Wall Street “as the macroeconomic environment has deteriorated further and faster than anticipated.”
In an SEC filing Monday afternoon after market close, Snap said revenue and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) will come in “below the low end” of the range it guided investors to in April with its first quarter numbers.
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“We remain excited about the long-term opportunity to grow our business. Our community continues to grow, and we continue to see strong engagement across Snapchat, and continue to see significant opportunities to grow our average revenue per user over the long term,” the company said.
Revenue rose 38% to $1 billion, below targets, and the social media company behind Lenses swung to a net loss of $360 million from a profit of $287 million the prior year.
The company previously said it expects estimated revenue growth year-over-year for the current quarter to be between 20% and 25%, with adjusted EBITDA estimated to be between breakeven and $50 million. It didn’t provide new metrics.
Snap stock closed down 3.40% at $22.47 at the end of today’s session — which saw the broader market rise. It has shed a third of its value in the after market, changing hands at just over $15.
Markets have been extremely volatile and largely down of late. An uptick late Friday and into today narrowly skirted the declaration of an official bear market — indicated by a 20% drop from recent highs.
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