Snap reported a second quarter of sliding advertising growth , with sales for the three months to June down 3.9% to $US1.067 billion.
The social media platform says “forward visibility of advertising demand remains limited“.
And Snap’s best estimate puts revenue in the September quarter between $1.07 billion to $1.13 billion, implying negative 5% to flat year-over-year growth.
“This forecast also assumes modest sequential headcount growth as we continue to carefully calibrate our operating investments to focus on the inputs most essential to the acceleration of top line growth,” Snap says
Daily Active Users increased 14% to 397 million in the June quarter.
The net loss was $377 million, compared to $422 million at the same time last year.
“We are excited by the progress we have made delivering increased return on investment for our advertising partners, growing our community to 397 million daily active users, and reaching more than 4 million Snapchat+ subscribers,” said CEO Evan Spiegel, CEO.
The company says the business is in a period of rapid transition as Snap works to improve its advertising platform.
Snap says it continues to invest in infrastructure to improve the performance of its advertising platform and to drive deeper content engagement.
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