Since the end of April,the macroeconomic environment deteriorated further and faster than expected. As a result, we believe it is likely that we will report revenue and Adjusted EBITDA below the lower end of our second quarter 2022 guidance range.“, said the company last night.
U.S. stocks had finished higher on Monday, helped by gains in banks and tech, but the rise followed Wall Street’s longest streak of weekly declines since the dotcom meltdown more than 20 years ago. Many investors remain on their guard.
Snap chief executive Evan Spiegel told employees in a memo seen by Reuters that the company will slow hiring this year and presented a wide range of issues.
Snap on two years before nightfall
Multiple pressure factors
“Like many businesses, we continue to deal with rising inflation and interest rates, supply chain shortages and labor disruptions, platform policy changes, impact of the war in Ukraine, and more“, he wrote.
Last month, Snap forecast second-quarter revenue growth of 20-25% year-over-year.
This news follows statements from companies like Uber Technologies and Meta Platforms (Facebook), which announced earlier this month that they would cut costs and cut hiring. In the memo, Spiegel explained that Snap will adjust its forecast and that “leaders were told to review spending to find additional savings“However, around 500 hires are still planned for this year.