Snap is slowing hiring after posting “more challenging than we expected” June quarter results.
The social media company reported lower than expected revenue of $1.11 billion, up 13%, for the second quarter.
The net loss was $422 million, compared to $152 million last year.
Daily active users increased 18% to 347 million compared to the same three months last year.
Snap didn’t give guidance “given uncertainties related to the operating environment”.
And revenue is flat so far in the September quarter.
In an investor letter, the company said: "Forward-looking visibility remains incredibly challenging, and it is unclear how the headwinds we observed in Q2 will evolve as we move through Q3.
"Given this, we do not intend to provide financial guidance for Q3. That said, it is clear that our rate of revenue growth has slowed considerably and we must adapt our investment strategy."
Snap is taking a hard look at how to better drive productivity: “This will include a substantially reduced rate of hiring and a strict reprioritisation of goals and initiatives across the company.”
CEO Evan Spiegel: “While the continued growth of our community increases the long-term opportunity for our business, our financial results for Q2 do not reflect our ambition.
"We are evolving our business and strategy to reaccelerate revenue growth, including innovating on our products, investing heavily in our direct response advertising business, and cultivating new sources of revenue to help diversify our topline growth."
Numbers for the June quarter:
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