Latest news with #Snapchat-parent
RTÉ News
4 days ago
- Business
- RTÉ News
Snap's revenue growth slowest in over a year as competition, ad platform glitch hurt
Snap has reported its slowest quarterly growth in more than a year, hurt by a temporary glitch in its ad platform and advertiser preference for bigger rivals such as Meta, sending its shares down over 16% in extended trading. The Snapchat-parent said it had resolved the error that unintentionally allowed some ads to run at much lower prices. Snap faces tough competition from the likes of TikTok and Meta-owned Facebook and Instagram, with advertisers preferring the larger platforms as they curtail marketing budgets amid economic uncertainty. Rivals Meta and Reddit reported upbeatsecond quarter results last week. "The digital ad tailwinds that propelled Meta and Reddit to blowout quarters turned into a light breeze for Snap," said eMarketer principal analyst Jasmine Enberg. Under different circumstances, investors might have overlooked its ad platform misstep, but "there is little room for mistakes," she added. Snap's quarterly revenue was also impacted by the timing of Ramadan, which influenced ad spending patterns. The end of the "de minimis" exemption - a US duty-free import provision - also prompted some Chinese advertisers to reduce their marketing budgets. In April, ad revenue declined about 1% before "largely recovering" through May, and triggering the company to roll out Sponsored Snaps - a new video ads format that appears in user inboxes - more broadly in June, said CFO Derek Andersen. The company said its expanded roll-out of Sponsored Snaps across the US and several other global regions is driving more user actions and deeper engagement with ad content. The Santa Monica, California-based company reported second-quarter revenue of $1.34 billion, up around 8.7% from last year and largely in line with estimates, but lower than the double-digit growth it recorded in the last five quarters. Its net loss widened to $263 million from $249 million a year ago. Small and medium-sized businesses were the largest contributors to ad revenue growth and its subscription service Snapchat+ remained a key driver for diversifying revenue beyond ads. Snapchat+ subscribers rose 42% to nearly 16 million for the quarter ended June 30. Daily active users rose 9% to 469 million, compared with estimates of 467.9 million. The company forecast third-quarter revenue between $1.48 billion and $1.51 billion, compared with analysts' average estimate of $1.48 billion, according to data compiled by LSEG.
The Star
6 days ago
- Business
- The Star
Snap sinks as ad glitch, fierce competition stall growth
FILE PHOTO: A woman stands in front of the logo of Snap Inc. on the floor of the New York Stock Exchange (NYSE) while waiting for Snap Inc. to post their IPO, in New York City, NY, U.S. March 2, 2017. REUTERS/Lucas Jackson/File photo (Reuters) -Snap shares plummeted nearly 17% in premarket trading on Wednesday as a weak quarter and mounting competition underscored the company's struggle to keep pace with AI-driven peers. Advertisers have been curtailing marketing budgets amid economic uncertainty and leaning toward bigger platforms like TikTok and Meta's Facebook and Instagram. That, and a glitch in Snap's ad-buying platform that resulted in ads being delivered at discounted rates contributed to quarterly revenue growth slowing down to 8.7% from a year ago. Although it aligned with estimates, it is a far cry from the brisk double-digit growth the Santa Monica, California-based company logged over the past five quarters. MoffettNathanson analysts said advertisers favor platforms that sit closer to users inclined to buy their product, offer strategies to different marketing tools, and can demonstrate clear return on ad spend. "Snap still lags on all three fronts," they said. "Until those factors change, we think the company remains stuck in monetization purgatory." The Snapchat-parent is now in a tough spot, especially as rivals Meta and Reddit reported strong second-quarter results last is down around 12% this year, trailing rivals Meta that is up 30.3% and Reddit that is up 21.8%, as their AI-driven businesses are making big leaps. The company said a broader rollout of Sponsored Snaps — a new video ad format that appears in user inboxes — in June across the U.S. and several global regions, is driving increased user actions and deeper engagement with ad content."For Snap to take advantage of its improvements in engagement it must better prove out the efficacy of its ads to advertisers and lower barriers to advertiser adoption of its products", Morgan Stanley analysts said. (Reporting by Joel Jose in Bengaluru; Editing by Harikrishnan Nair)
The Hindu
6 days ago
- Business
- The Hindu
Snap's revenue growth slowest in over a year as competition, ad platform glitch hurt
Snap on Tuesday reported its slowest quarterly growth in more than a year, hurt by a temporary glitch in its ad platform and advertiser preference for bigger rivals such as Meta, sending its shares down over 16% in extended trading. The Snapchat-parent said it had resolved the error that unintentionally allowed some ads to run at much lower prices. Snap faces tough competition from the likes of TikTok and Meta-owned Facebook and Instagram, with advertisers preferring the larger platforms as they curtail marketing budgets amid economic uncertainty. Rivals Meta and Reddit reported upbeat second quarter results last week. "The digital ad tailwinds that propelled Meta and Reddit to blowout quarters turned into a light breeze for Snap," said eMarketer principal analyst Jasmine Enberg. Under different circumstances, investors might have overlooked its ad platform misstep, but "there is little room for mistakes," she added. Snap's quarterly revenue was also impacted by the timing of Ramadan, which influenced ad spending patterns. The end of the "de minimis" exemption, a U.S. duty-free import provision, also prompted some Chinese advertisers to reduce their marketing budgets. In April, ad revenue declined about 1% before "largely recovering" through May, and triggering the company to roll out Sponsored Snaps, a new video ads format that appears in user inboxes, more broadly in June, said CFO Derek Andersen. The company said its expanded roll-out of Sponsored Snaps across the U.S. and several other global regions is driving more user actions and deeper engagement with ad content. The Santa Monica, California-based company reported second-quarter revenue of $1.34 billion, up around 8.7% from last year and largely in line with estimates, but lower than the double-digit growth it recorded in the last five quarters. Its net loss widened to $263 million from $249 million a year ago. Small and medium-sized businesses were the largest contributors to ad revenue growth and its subscription service Snapchat+ remained a key driver for diversifying revenue beyond ads. Snapchat+ subscribers rose 42% to nearly 16 million for the quarter ended June 30. Daily active users rose 9% to 469 million, compared with estimates of 467.9 million. The company forecast third-quarter revenue between $1.48 billion and $1.51 billion, compared with analysts' average estimate of $1.48 billion, according to data compiled by LSEG.
Time of India
6 days ago
- Business
- Time of India
Snap's revenue growth slowest in over a year as competition, ad platform glitch hurt
Academy Empower your mind, elevate your skills Snap on Tuesday reported its slowest quarterly growth in more than a year, hurt by a temporary glitch in its ad platform and advertiser preference for bigger rivals such as Meta , sending its shares down over 16% in extended Snapchat-parent said it had resolved the error that unintentionally allowed some ads to run at much lower faces tough competition from the likes of TikTok and Meta-owned Facebook and Instagram, with advertisers preferring the larger platforms as they curtail marketing budgets amid economic uncertainty. Rivals Meta and Reddit reported upbeat second quarter results last week."The digital ad tailwinds that propelled Meta and Reddit to blowout quarters turned into a light breeze for Snap," said eMarketer principal analyst Jasmine different circumstances, investors might have overlooked its ad platform misstep, but "there is little room for mistakes," she quarterly revenue was also impacted by the timing of Ramadan, which influenced ad spending patterns. The end of the "de minimis" exemption - a U.S. duty-free import provision - also prompted some Chinese advertisers to reduce their marketing April, ad revenue declined about 1% before "largely recovering" through May, and triggering the company to roll out Sponsored Snaps - a new video ads format that appears in user inboxes - more broadly in June, said CFO Derek company said its expanded roll-out of Sponsored Snaps across the U.S. and several other global regions is driving more user actions and deeper engagement with ad Santa Monica, California-based company reported second-quarter revenue of $1.34 billion, up around 8.7% from last year and largely in line with estimates, but lower than the double-digit growth it recorded in the last five quarters. Its net loss widened to $263 million from $249 million a year and medium-sized businesses were the largest contributors to ad revenue growth and its subscription service Snapchat+ remained a key driver for diversifying revenue beyond subscribers rose 42% to nearly 16 million for the quarter ended June 30. Daily active users rose 9% to 469 million, compared with estimates of 467.9 company forecast third-quarter revenue between $1.48 billion and $1.51 billion, compared with analysts' average estimate of $1.48 billion, according to data compiled by LSEG.
The Star
6 days ago
- Business
- The Star
Snap records slowest revenue growth in over a year amid tough competition for ads
FILE PHOTO: Snapchat logo is seen in this illustration taken July 28, 2022. REUTERS/Dado Ruvic/Illustration/File Photo (Corrects paragraph 4 to say revenue rose 8.7%, not 8.1%, in the second quarter) (Reuters) -Snap on Tuesday reported second-quarter revenue growth that was the slowest in more than a year, a sign of growing competition from bigger social media rivals including Meta. Shares of the Snapchat parent slumped 15% after the bell following the results. The company's results came after stellar performances by rivals, including Instagram and Facebook parent Meta Platforms and Reddit. The Snapchat-parent's second-quarter revenue rose 8.7% to $1.34 billion, largely inline with estimates. The quarterly revenue was hit by changes to its ad platform, the timing of Ramadan and the termination of de minimis exemption or a duty-free import loophole in the U.S. The company said it had reverted the ad platform change that unintentionally allowed some ads run at much lower prices, hurting revenue growth in the reported quarter. Snap said its expanded roll-out of the new ad format — Sponsored Snaps, video ads that appear in user inboxes — across the U.S. and several other global regions is helping by driving more user actions and deeper engagement with ad content. Small and medium-sized businesses were the largest contributors to ad revenue growth and its subscription service Snapchat+ remained a key driver for diversifying revenue beyond advertising. Snapchat+ subscribers rose 42% to nearly 16 million for the quarter ended June 30. Daily active users rose 9% to 469 million, compared with estimates of 467.9 million. The company forecast third-quarter revenue between $1.48 billion and $1.51 billion, compared with analysts' average estimate of $1.48 billion, according to data compiled by LSEG. It expects quarterly adjusted earnings before interest, taxes, depreciation, and amortization to be between $110 million and $135 million, above estimates of $111.9 million. For the second quarter, the company's net loss widened to $263 million from $249 million a year ago. (Reporting by Jaspreet Singh in Bengaluru; Editing by Leroy Leo)
