Snap’s (SNAP) stock is down 15% after the social media company reported fourth quarter earnings that missed Wall Street expectations.
The Santa Monica, California-based company that runs the Snapchat platform reported earnings per share of $0.14 U.S. versus $0.11 U.S. that was expected by analysts, according to Refinitiv data.
The company’s Q4 revenue amounted to $1.30 billion U.S. versus $1.31 billion U.S. that was expected. And the number of Daily Active Users (DAUs) on the site came in at 375 million in Q4 compared to 375.3 million expected.
The Q4 results marked the third consecutive disappointing earnings report from Snap. The day after the company’s Q3 earnings last October, Snap’s stock fell 28%.
Over the past 12 months, Snap’s stock has declined 66% to $11.56 U.S. per share.
Like other social media companies, Snap had a difficult 2022 as a slowing economy led businesses to cut their digital advertising budgets.
Snap refused to provide any formal guidance to investors and analysts. However, the company said that its internal forecast assumes a decline of between 2% and 10% in the coming year.
The company said it plans to refocus investments to concentrate on growing its community and engagement and will invest in developing new virtual and augmented reality technologies.
Snap previously announced that it is laying off 20% of its workforce of more than 6,000 employees. The company has also canceled several projects, including plans for a photo-taking drone.
