(CercleFinance.com) – Snap, owner of Snapchat, reported quarterly results yesterday evening considered disappointing, which caused its stock price to plunge by more than 30% on Wednesday in the first transactions on Wall Street
The Santa Monica group reported a 10% increase in the number of active Snapchat users in the fourth quarter, which reached 414 million by the end of the year.
But the increase in its audience was not reflected in its turnover, which comes mainly from advertising revenue, since it only increased by 5% to 1.36 billion dollars.
As a result, its net loss narrowed to just $248 million, from $288 million a year earlier.
Chief executive Evan Spiegel said the company had successfully laid a ‘strong foundation’ for long-term growth, but its forecast for 2024 disappointed the market.
Snapchat said it was targeting revenue growth of between 11% and 15% this year, but investors were hoping for better, with forecasts of between 14% and 16%.
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