(CapitalWatch, July 23, New York) Snap (NYSE: SNAP) reported an adjusted loss of 2 cents a share on revenue of $1.11 billion in the second quarter, which missed analyst expectations.
The Snapchat parent also declined to give third-quarter guidance due to "uncertainties related to the operating environment."
Snap attributed the mounting losses to a weaker advertising market and the broader market ills of inflation and rising interest rates.
"While the continued growth of our community increases the long-term opportunity for our business, our financial results for Q2 do not reflect the scale of our ambition," the company said in a letter to investors. "We are not satisfied with the results we are delivering, regardless of the current headwinds."
Derek Andersen, the chief financial officer of Snap, said during the earnings call that the company needs to cut operating expenses, which will involve "substantially slow our rate of hiring, as well as the rate of operating expense growth."
To increase revenue, Snap launched its paid subscription plan Snapchat+ two weeks ago to offer users exclusive features, such as the ability to change the app's icon and see who has rewatched your Stories. Snapchat+ costs $3.99 per month.
Snap's shares fell nearly 40% Friday to $9.96 per share, the lowest since the pandemic began in 2020.