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![]() ![]() Ads on this platform could be valuable considering Snap’s young demographic which is quite difficult to reach with linear TV or commercial-supported streaming. The Discover section of its app, which offers curated content, reached an audience of over 100 million people on Snapchat this year. Separately, the company is also gaining traction in the content space. The growing user base, coupled with improving technology – such as Dynamic Ads which creates ads in real-time - could enable the company to boost ARPUs and overall revenues. Sure, part of this was due to Covid-19 and the related lockdowns, which forced people to stay home and socialize online, but Snap has actually seen growth in daily active users pick up over the last few quarters as well (it added a total of 52 million subscribers since Jan 2019). Firstly, Snap’s daily active user base has been expanding sharply, rising by about 17% y-o-y to 238 million during Q2 2020. There are multiple trends that support this continued growth. “Our most meaningful gains over the coming months will come as a result of improved productivity from our existing team members,” he wrote.Snap’s Revenues could grow by over 3x from estimated levels of a little over $2 billion in 2020 to close to $5 billion by 2025, representing a growth rate of roughly 31% per year (for context annual growth was about 60% between 20). Spiegel told staff that company leaders have been asked to review spending, to see if there are any other areas worth cutting. “Many other companies have been experiencing a similar effect.” “The global macroeconomic environment has become less favorable, the war in Ukraine has impacted our results, and may continue to do so,” Twitter Chief Executive Officer Parag Agrawal said in an email to employees. Twitter recently announced a hiring freeze and other cost cutting measures to try and save cash. posted its biggest one-day drop on record after the Snapchat parent company warned that Apple Inc.’s data collection rules and global supply-chain bottlenecks are weighing on. Advertisers are facing a shaky economy as well as recent privacy changes, such as Apple Inc.’s tracking restrictions, which have slowed businesses that were booming during much of the pandemic.įacebook parent Meta last month cut spending because of the macroeconomic environment. The platforms are all competing for ad dollars at a challenging time. “Underlying growth is slowing as these companies mature and it gets more competitive.” Suzuki’s firm, which has about $15 billion of assets under management, does not hold Snap stock directly. ![]() The companies “are having to bring these unattainable, unrealistic investors’ expectations back down to Earth,” said Dan Suzuki, deputy chief investment officer at Richard Bernstein Advisors, on Bloomberg Television Monday. The warning immediately hit other companies reliant on advertising, including Twitter Inc., Alphabet Inc. The company’s second-quarter forecast, for 20% to 25% year-over-year revenue growth, was already below analysts’ estimates. ghost logo is seen inside the company’s building in the Venice Beach neighborhood of Los Angeles, California, US “As a result, we believe it is likely that we will report revenue and adjusted Ebitda below the low end of our Q2 2022 guidance range.” An Snapchat Inc. “The macroeconomic environment has deteriorated further and faster than anticipated,” Snap said in a filing. Both Meta and Uber have cut back on the speed of hiring, after warning about the increasing cost of doing business. This compares to about 1,800 new staff added over 2021. Snap will add 500 roles before the end of the year, on top of 900 jobs already offered this year. Now, as people return to offices and schools, the company is reeling from the same combination of economic pressures that are also facing its competitors. Snap benefited from a surge in usage of its Snapchat app during the pandemic, when people were looking for entertainment and connection from their homes. In total, social media stocks were on course to shed more than $100 billion in market value following Snap’s announcement. Major advertising houses also dropped, with WPP Plc dropping 3.9% in London. The collapse in Snap’s share spread to other internet and advertising stocks, with Meta Platforms Inc. Snap marked its biggest intraday decline since it went public in March 2017, falling to as low as $13.55. Keep reading list of 4 items list 1 of 4 Russia finds US company Meta guilty of ‘extremist activity’ list 2 of 4 EU, UK antitrust bodies probe Alphabet, Meta ‘Jedi Blue’ ad deal list 3 of 4 Mother sues Meta and Snap over tween daughter’s suicide list 4 of 4 YouTube, TikTok, Snap execs to face US senators on kids’ safety end of list ![]()
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