👻💸 Snap Dey Bust! Sales Drop Kine Firs Time As Public Company 📉
Eh brah, Snap, da big daddy of Snapchat, wen go spill da beans on Thursday dat dea kala (money) wen go down fo’ da firs time since dey wen open up to da public. Da bugga had hard time fo’ handle da rough economic scene, az why! 😓💼
Da kala fo’ da firs quartah wen be $989 million, down 7 percent from da same time las year. Dat wen stay below da Wall Street’s guess of $1 billion. Da company wen say da demand fo’ dea ads wen get “bump” by da new tings dey wen put on da platform dey sell ads on. Snap’s stock wen go down mo’ dan 20 percent aftah trading time on Thursday. 💰💡📊
Snap wen also record a net loss of $329 million, which was less dan da $360 million it wen lose las year.
But no worry, not all da news stay bad. Da numba of Snapchat daily usahs wen grow to 383 million, a 15 percent increase ova las year. 📈🙌👥
Evan Spiegel, da head honcho of Snap, wen talk good ’bout Snapchat’s usahs increasing. “We stay working to make our revenue grow fasta,” he wen say.
Why It Mattahs: Da digital ad slump stay bouncing back, but not fo’ everybody. Google’s search ads and Facebook’s display ads stay stable now, and both wen report lil bit mo’ growth dis week. 🌐💻🔍
But Snap, smalla kine company, still get big kine fight from TikTok. Snap wen also get hit by privacy changes from Apple dat make um hard fo’ advertisers fo’ collect data and show high target pitches. 🎯🍎🛡️
Oddahs also stay trying fo’ deal wit da ad slump. Advertising kala at YouTube, one part of Google, wen go down 3 percent in da firs three months of da year. 🎥💸📉
Background: Tough times. Snap wen start in 2011 and wen go public in 2017. Da investors dey expect it fo’ grow fast. As recently as 2021, Snap wen report revenue growth dat wen double da previous year. But dat wen slow down big time ova da last year cause of da unsure economic times wit da high inflation and interest rates, and den finally dis quartah’s drop. 📆💡📉
Snap’s stock wen drop 65 percent ova da last year, pulling its valuation below $16 billion early dis week. Dat’s even less dan wat da venture capitalists valued da company at before it wen go public in 2017. 💔💰📉
What’s Nex: Subscriptions and A.I. Jus’ like plenty otha tech companies, Snap wen spend da las year laying off staff and cutting back on da big dream side projects. And jus’ like plenty otha tech companies, it stay going big on artificial intelligence. 🤖🧠⚙️
Snap wen recently show off one chatbot called My AI dat let Snapchat usahs talk story wit da bot by demself or wit one group. Da bot, powered by OpenAI, wen get some bad talk from usahs. Snap wen say its usahs wen send ova two million messages a day to da bot. 🤖💬
NOW IN ENGLISH
👻💸 Snap Stumbles! Sales Plunge for the First Time as a Public Company 📉
On Thursday, Snap, the company behind Snapchat, revealed for the first time since going public that their revenue had dipped. The company grappled with a challenging economic climate, causing quite the struggle! 😓💼
Revenue for the first quarter was $989 million, a 7 percent decrease from the same time last year. That was less than Wall Street’s estimate of $1 billion. The company mentioned that the demand for its ads was “jostled” due to improvements made to the ad platform. Snap’s stock took a hit, plunging more than 20 percent after trading hours on Thursday. 💰💡📊
Additionally, Snap reported a net loss of $329 million, which was less than the $360 million it lost the previous year.
But it’s not all doom and gloom. The number of daily Snapchat users grew to 383 million, marking a 15 percent increase compared to last year. 📈🙌👥
Evan Spiegel, the CEO of Snap, was upbeat about Snapchat’s user growth. “We’re striving to accelerate our revenue growth,” he shared.
Why It Matters: The digital ad market is rebounding, but not for everyone. Google’s search ads and Facebook’s display ads have stabilized, with both giants reporting a slight increase in growth this week. 🌐💻🔍
However, Snap, being a smaller player, still faces tough competition from the likes of TikTok. Snap was also impacted by privacy changes implemented by Apple, making it harder for advertisers to gather data and create highly targeted ad pitches. 🎯🍎🛡️
Others are also grappling with the ad slump. For example, ad revenue at YouTube, a subsidiary of Google, declined by 3 percent in the first three months of the year. 🎥💸📉
Background: Tough Times. Snap was founded in 2011 and went public in 2017. It’s a growth stock, meaning investors expect it to expand rapidly. As recently as 2021, Snap reported a revenue growth that doubled from the previous year. However, this growth has significantly slowed over the last year due to macroeconomic uncertainties like inflation and rising interest rates, culminating in this quarter’s decline. 📆💡📉
Snap’s stock plummeted 65 percent over the past year, bringing its valuation below $16 billion earlier this week. This is less than what venture capitalists valued the company at before it went public in 2017. 💔💰📉
What’s Next: Subscriptions and A.I. Much like many other tech companies, Snap spent the last year laying off staff and scaling back on ambitious side projects. And just like these other tech companies, it’s investing heavily in artificial intelligence. 🤖🧠⚙️
Snap recently unveiled a chatbot named My AI, which allows Snapchat users to interact with the bot individually or in a group. The bot, powered by OpenAI, received some criticism from users. Snap reported that its users were sending over two million messages a day to the bot. 🤖💬
