By jaspreet Singh
(Reuters) – Snap said on Tuesday that it would not issue financial forecasts for the second quarter citing economic uncertainty, because American prices threaten to disrupt the global economy and digital advertising budgets, reversing its 13% actions in prolonged trade.
The parent of Snapchat was faced with challenges at the beginning of the current quarter, even if he continued to diversify both his advertising base with small and medium -sized enterprises and its sources of income with the growth of its subscription service.
Snapchat + subscribers increased 59% to 15 million in the first quarter.
But economic uncertainty could trigger an advertising spending to greater competitors such as Facebook and the owner of Instagram Meta because of their massive user base, analysts said.
SNAP’s results occur after Google’s growth in advertising revenue has beaten analysts’ predictions for the first quarter.
The company focuses on direct response announcements designed to cause specific actions such as application downloads or websites, in the middle of the weakness of the brand awareness announcements.
The advertising revenues of the direct response reached 75% of the total contribution of SNAP advertising revenues for the first time in the closed quarter on March 31.
Total active advertisers increased by 60% compared to the previous year in the first quarter, partly by the company’s concentration on small and medium -sized enterprises.
“If it is clear that Snap has succeeded in wrapping small businesses, it is far from being the only social platform that flows its advertising money, which makes it more difficult for the company to really make its brand in this area,” said Minda Smiley, Emarketer analyst.
Income increased by 14% to $ 1.36 billion, slightly beating the average of analysts of $ 1.35 billion, according to data compiled by LSEG.
The profit adjusted before interest, taxes, depreciation and depreciation of $ 108.4 million in the quarter exceeded the estimates of $ 64.7 million.
Snapchat daily active users increased by 9% to 460 million, beating estimates of 458.3 million.
The company said its monthly active users had reached 900 million, on the right track to reach its target of 1 billion.
SNAP has reduced its annual forecasts for operating expenses adjusted between $ 2.65 billion and $ 2.70 billion compared to its previous expectations of $ 2.70 billion to $ 2.75 billion.
(Report by Jaspreet Singh in Bengaluru; edition by Alan Barona)
