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Snap (SNAP) reported mixed fourth-quarter 2022 results, as efforts to improve cost efficiencies which began at the end of third-quarter 2022 helped offset modestly weak revenue. The firm also indicated that revenue will likely decline year over year during the current quarter. It’s shares slid more than 14% in extended trading on Tuesday.
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For the full year, sales rose 12% to $4.6 billion in 2022. In its earnings statement, Snap said it wouldn’t provide guidance for the next period. However, in the investor letter, the company said its “internal forecast” assumes a decline of between 2% and 10% from a year earlier.
Why it matters
Even in a rough year for Big Tech as a whole, Snap's year stood out as uniquely tough. The company's shares tumbled around 80% throughout 2022, as it was rattled by slowed digital advertising, high inflation, and fast-growing competition from TikTok. In August, Snap laid off 20% of its workforce, a move that affected 1,300 employees.
