The parent company of Snapchat, Snap, saw its share price plummet by twenty percent after reporting earnings for the first quarter (Q1) that fell short of expectations set by Wall Street.
Snap’s revenue fell by 7% to $989 million from 1.063 billion during the same time a year ago, while the company’s net loss shrunk from $360 million to $329 million.
In comparison to the previous year’s total of $106 million, this year’s free cash flow came in at $103 million.
According to a statement released by the firm, the number of daily active users has climbed by 15 percent year over year, reaching 383 million.
According to Evan Spiegel, CEO of Snapchat, “Our community is continuing to expand, reaching 383 million daily active users in Q1,” and “we are working to deepen engagement with our content platform while building innovative new features and services like My AI.”
“We are working hard to accelerate the growth of our revenue, and we are taking advantage of this opportunity to make significant improvements to our advertising platform,” he continued, “to assist in driving an increased return on investment for our advertising partners.”
Snap’s second-quarter 2023 revenue prediction of $1.04 billion is significantly lower than analysts’ $1.10 billion.
My AI is a new AI-powered chatbot that Snapchat has released for all of its users. Its purpose is to make conversational artificial intelligence helpful and incorporates relevant augmented reality lenses and recommendations from the Snap Map.
According to the firm, “Total time spent watching Spotlight content increased by more than 170 percent year-over-year,” and “Spotlight reached more than 350 million monthly active users on average in Q1,” which is an increase of 46 percent year-over-year.