Snap, naming “rapid deceleration” in digital advertising, reported flat revenue growth in the December quarter with weaker results ahead.
The $US1.3 billion revenue for the three months was within analyst expectations but was slightly below the same quarter the previous year.
Snap has been a leading indicator of a sliding global digital advertising sector. In October, Snap reported slow growth in advertising revenue with brands pulling back their budgets in the face of deteriorating economic conditions.
In its latest results, the full year numbers look good. For the 12 months to December, Snap's revenue increased 12% to $4.6 billion.
Daily Active Users were 375 million, a 17% rise over the year to December. But average revenue per user was down to $12.98 in 2022 from $13.65 in 2021.
And the company’s internal forecast assumes revenue will be down -10% to -2% in the March quarter of 2023 compared to the same three months in 2022.
CEO Evan Spiegeld: “2022 was a challenging year for our business, as we continued to be impacted by macroeconomic headwinds, platform policy changes, and increased competition.
“We’ve taken action to refocus our investments to support our three strategic priorities of growing our community and deepening their engagement with our products, accelerating and diversifying our revenue growth, and investing in the future of augmented reality.
“We are focused on the most important inputs that we can control: delivering engaging experiences to Snapchatters and improving business outcomes for our advertising partners.”
“We begin 2023 focused on executing against our three strategic priorities of growing our community and deepening their engagement with our products, accelerating and diversifying our revenue growth, and investing in the future of augmented reality.”
The numbers:
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