Snap Inc. reported first-quarter revenue of $1.36 billion, slightly surpassing expectations, though shares dropped by 14% in after-hours trading following the company's decision to withhold guidance for future quarters. The CEO cited macroeconomic uncertainties, particularly regarding advertising demand, as the reason for this cautious outlook. The company also highlighted a growth in daily active users and a rise in ad revenue, primarily driven by direct response advertising, despite a decline in brand-oriented revenue. Analysts had anticipated a stronger second-quarter performance, which Snap did not confirm.
"While our topline revenue has continued to grow, we have experienced headwinds to start the current quarter, and we believe it is prudent to continue to balance our level of investment with realized revenue growth."
"Snap's cited potential constraints on advertising demand as the reason for holding off on guidance. Ad revenues for the period rose 9% year over year to $1.21 billion."
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