The photo app Snapchat continues to attract new users, but the advertising business has not taken off. Developer Snap internally expects a revenue decline of between two and ten percent for the current quarter.
Snap also recently dipped deep into the red. All in all, there was a loss of about $288.5 million in the last quarter, after a profit of $22.5 million a year earlier. Sales remained at $1.3 billion, Snap announced after the US market closed on Tuesday. The stock fell about 14 percent in aftermarket trading.
The number of Snapchat users rose from 363 million three months earlier to 375 million.
Founder and boss Evan Spiegel referred to the weakening economy, which is slowing down the online advertising market. Snapchat continues to tease Apple’s iPhone privacy policy. App developers like Snap need to ask users for permission if they want to track their activity across apps and websites to personalize ads. Many users reject this, which has made advertising platforms, including Snapchat and Facebook, less efficient. (sda/dpa)
Source: Watson
I’m Ella Sammie, author specializing in the Technology sector. I have been writing for 24 Instatnt News since 2020, and am passionate about staying up to date with the latest developments in this ever-changing industry.
