Snap still hard on Wall Street after conceding colossal losses in 2022

The quarters follow one another and look alike for Snap. The parent company of Snapchat is again battered on the New York Stock Exchange after the announcement of its financial results for the last three months of 2022. During this period, turnover fell very slightly to 1.3 billion euros. dollars, while the accounts are in the red with a net loss of 288 million dollars in the fourth quarter, which contrasts with the profit of 23 million earned a year earlier. In addition, the app now claims 375 million daily users, up 17% year on year.

Over the whole of the 2022 financial year, the copy made by Snap is not more encouraging. The company conceded a dizzying net loss of $1.4 billion, tripling in the space of a year. The first quarterly profit in the history of the company headed by Evan Spiegel, recorded a year ago, therefore seems a long way off. As losses escalated, revenue was $4.6 billion, up 12% year-on-year.

Snapchat

Snapchat, a free application available on iOS and Android, or via an internet browser, which allows you to exchange photos and short videos, which have a limited lifespan.

• Version :
  12.18.0.33
• Downloads:
  232
• Release date :
  01/31/2023
• Author :
  Snap Inc.
• Licence :
  Free License
• Categories:
  

  Hobbies – Communication

• Operating system :
  

  Android, Online service All Internet browsers, iOS iPhone / iPad
  

This is Snap’s weakest growth since its IPO in March 2017, which quickly allowed it to reach a valuation of $35 billion. Today, the firm is worth only 16.4 billion dollars on Wall Street, where its action fell by nearly 15% on the evening of Tuesday, January 31, after the announcement of these results. The company had already seen its share price collapse by more than 30% in a few hours after the publication of its financial figures for the third quarter of 2022.

In great difficulty on the advertising market, Snap does not see any improvement in the near future and has therefore refused to publish its forecasts for the first quarter of 2023. This will not reassure Meta and Google, these two giants also being very largely addicted to online advertising.

Like the Gafam, Snap has bled its workforce. Faced with the ambient economic slump, the company decided to lay off nearly 20% of its staff, separating itself from the employees of Zenly, a French app acquired in 2017 and serving as the basis for the Snap Map. Last year, Snap also drew a line under its drone gadget Pixy just a few months after its launch. The prolific days of Covid are now over.