Snapchat misses on Q2 revenue, shares fell by 23%

Snap announced the company’s second quarter earnings after the closing bell on Thursday, missing Wall Street’s expectations, so shares fell by 23% in after-hours trading.

Average revenue per Snapchat user fell 4.5% year-over-year, and the company said it was not providing Q3 guidance given the current financial climate.

Snapchat’s earnings follow the company’s May announcement that it would miss its prior revenue forecast for the quarter.

Tech stocks have been subject to general drop this year, with shares of Amazon down more than 25% and shares of Facebook parent Meta off 45% year-to-date. But even among beaten down tech stocks, Snapchat is a similar example. Shares are off a 65% year-to-date, putting it in the rare company of the likes of Netflix, which is down 63%.

The revenue miss was certainly disappointing, and I think it sort of confirmed and advertisement spending is slowing. In an attempt to raise revenue, Snapchat announced Snapchat+ subscription service in June. Priced at $3.99, Snapchat+ promises users access to exclusive, experimental, and pre-release features.