Snap shares cratered in after-hours trading after the social media company said it sees revenue and adjusted Ebitda below the low end of its 2Q guidance range.
This announcement comes just a month after its earnings announcement when the company said it was expecting second-quarter revenue growth in a range of 20% to 25% year-over-year. The company also said it saw second-quarter adjusted EBITDA between breakeven and $50 million.
Things have clearly changed rapidly, as the full 8K admits:
Since we issued guidance on April 21, 2022, the macroeconomic environment has deteriorated further and faster than anticipated.
As a result, we believe it is likely that we will report revenue and adjusted EBITDA below the low end of our Q22022 guidance range.
We remain excited about the long-term opportunity to grow our business. Our community continues to grow, and we continue to see strong engagement across Snapchat, and continue to see significant opportunities to grow our average revenue per user over the long term
CEO Evan Speigel confirmed all of the above in a note to employees, adding that Snap will continue to recruit new employees, but will slow its pace of hiring for the rest of the year. He still expects Snap to hire 500 new employees before the end of the year, according to the note. The company hired about 2,000 employees over the last 12 months.
“Our most meaningful gains over the coming months will come as a result of improved productivity from our existing team members,” Spiegel wrote.
The reaction was dramatic with the stocks down 26%...
Nasdaq futures have erased all of the day's gains...
SNAP is back at levels seen before COVID...
Facebook, Google, and Twitter have been hit after-hours on the headlines.