Snap just released a good set of results for the September quarter but says conflict in the Middle East has hit advertising campaigns.
The uncertainty has also stopped the social media platform forecasting ad revenue for the next three months.
Snap’s revenue in the September quarter was up 5% to $US1.19 billion compared to the same three months last year. Net loss was $368 million.
Average users were up 12% to 406 million.
The company expects continued growth in users and is expected reach 410 million to 412 million in the December quarter.
“We believe we are on the right path with our direct-response advertising platform and are focused on executing against our roadmap to deliver further improvements,” Snap says in its earnings results.
“That said, forward visibility of advertising demand remains limited.”
The company saw pauses in spending from a large number of primarily brand-oriented advertising campaigns immediately following the onset of the war in the Middle East.
“This has been a headwind to revenue quarter-to-date,” Snap says.
“While some of these campaigns have now resumed, and the impact on our revenue has partially diminished, we continue to observe new pauses and the risk that these pauses could persist or increase in magnitude remains.
“Due to the unpredictable nature of war, we believe it would be imprudent to provide formal guidance for Q4.”
Snap’s internal forecast assumes a revenue range of $1.32 billion to $1.37 billion, implying year-over-year revenue growth of 2% to 6%.
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