Snap Inc. reported first-quarter results, highlighting that the company is feeling the sting from disruptions in the digital ad market,
- Snap posted sales that narrowly fell short of its forecast then Wall Street expected.
Chief Executive Evan Spiegel called the quarter “more challenging than expected.“
Snap is one of the first tech companies with sales focused on the digital ad market to report results for the January through March period.
Meta Platforms Inc. Twitter Inc. and Alphabet Inc. all report quarterly results this week.
*Snap trends chart projection by Financesonline
reported a net loss of $360 million for the first three months of this year, including a $92 million unrealized loss on an investment, but sales jumped 38% from a year earlier to $1.06 billion.
For the current quarter, sales have seen growth so far of around 30%, Chief Financial Officer Derek Andersen said
“We are concerned that the operating environment ahead could be even more challenging, leading to further campaign pauses or advertiser budget reductions,” he said.
“Our brand advertising business grew at a relatively slower rate,” Mr. Andersen said.
He added that advertisers across numerous industries have expressed concerns about everything from rising costs and interest rates to supply- chain disruptions.
Digital ad sales at Snap and other companies were hit after Apple introduced software changes last year that started requiring apps to ask users whether they wanted to be tracked.