Snap shares fell more than 30% in after-hours trading after the company disclosed to the SEC on Monday that it expected to miss its second-quarter revenue guidance.
“Since we released guidance on April 21, 2022, the macroeconomic environment has deteriorated further and faster than expected,” the company said in its after-market filing. “As a result, we believe it is likely that we will report revenue and Adjusted EBITDA below the low end of our guidance range for the second quarter of 2022.”
In its first quarter earnings report, Snap – the parent company of Snapchat – hinted at disappointing revenue expectations, given that the company did not disclose a specific revenue target for the second quarter, as she usually does. Instead, Snap said it expects revenue growth to increase 20-25% year-over-year. As for its second-quarter adjusted EBITDA, Snap projected it would break even or hit $50 million.
During the company’s first quarter earnings call in April, Derek Anderson, Snap’s chief financial officer, warned that continued supply chain disruptions, labor shortages, inflation and the ongoing war against Ukraine would have a negative impact on the company’s performance in the second quarter.
Speaking at JP Morgan’s global technology, media and communications conference on Monday, Snap CEO Evan Spiegel said the company will “change some of the pace of [Snap’s] hiring,” but said this year would continue to be a “time of significant investment for the business.”
“It’s definitely something we’re working on with many other companies who are of course affected by supply chain issues, inflation, interest rate concerns, the war in Ukraine, etc. “, said Spiegel. “So there is a lot to manage in the macro environment today, but we remain focused on the long term and investing through it.”