Last month, Snapchat reported dismal quarterly earnings,
revealing that current quarter revenue could decline by as much as 10 percent,
as the social platform struggles with weak advertising demand.
The owner of photo messaging app Snapchat was the first of
the major digital advertising platforms to report fourth-quarter results, which
provides an early clue for platforms like Facebook owner Meta Platforms and
Alphabet's Google.
In a letter to investors, Snap said a weakening economy,
increased competition from other social media platforms and "platform
policy changes" continued to hurt its business in the fourth quarter.
Apple began rolling out privacy changes on iPhones in 2021
that have limited advertisers' ability to collect data for targeted
advertising.
Snap Chief Executive Evan Spiegel said during a conference
call with analysts that the company is working to improve its ability to
measure and boost the effectiveness of its ads, but it would take time for the
investments to translate into higher revenue.
Snap's net loss was $288 million during the quarter, down from net income of
$23 million the previous year. Revenue
for the fourth quarter that ended December 31 was $1.3 billion, flat from the
prior-year quarter and in line with analyst expectations. © Reuters
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