CFO Derek Anderson told investors that "we confront a lot of very large and highly competent competitors" and that "we're seeing the overall advertising pie increase at a slower clip amid the macro challenges."
Digital Desk: The
parent company of Snapchat, Snap, lost almost $10 billion when its shares hit a
new 52-week low following weak second-quarter results and bleak future
expectations.
The company announced a net
loss of $422 million on Friday, compared to a loss of $152 million the previous
year, as it "significantly" cut hiring. As a result, the stock price
of the company fell by about 40%.
CFO Derek Anderson told investors that "we confront a lot
of very large and highly competent competitors" and that "we're
seeing the overall advertising pie increase at a slower clip amid the macro
challenges."
As competition has increased, he continued, "it's difficult
to disentangle the multiple things here impacting what's clearly a headwind
driving deceleration in our business, whether it's with TikTok or any of the
other very significant, smart companies in this sector.
Snap said in May that recruiting would be reduced this year.
After alerting investors that its income wouldn't increase as quickly as
anticipated, Spiegel informed staff that the business planned to hire 500
workers this year, down from the 2,000 it hired during the previous 12 months.
Like many tech firms, Snap is still dealing with issues such as
rising prices and interest rates, labour and supply chain interruptions,
platform policy changes, the effects of the conflict in Ukraine, and more.
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