Snap, Snapchat’s maker is seeing a growth slump over the last few quarters. In July, the growth had been the slowest over a long time. There have been financial losses over the months and Snapchat even laid off its staff earlier. All this, despite being pretty popular among teens.
The Challenges Marring Growth
Revenue stood at $1.11 billion for this year’s second quarter. This was a 13 per cent jump year on year but the growth at Snap was slower. Before the pandemic arrived, the revenue increased by 17 per cent. The company has come out clean over the challenges it is facing on the economic front too.
Snap also mentioned that its revenue for the current quarter stood at an “approximately flat” curve from the year earlier. The stock also plunged higher than 25 per cent in to close at $16.35 in July this year.
The bright spot amid this was still some user growth among younger segments. Snap added that its active users on a daily basis saw an increase by 18 per cent to touch 347 million in 2022’s second quarter.