Key facts
- Snap stock closed down 1.5% at $5.76.
- The company reported 12% year-over-year revenue growth to $1.529 billion.
- Net losses narrowed to $89 million, with adjusted EBITDA reaching $233 million.
- Advertising revenue grew 3% to $1.24 billion.
- Snap announced layoffs affecting approximately 16% of its workforce.
- The company is investing in augmented reality initiatives.
Snap Inc. shares fell 1.5% to $5.76 on Tuesday, underperforming a stable broader market, as investors questioned the progress of its turnaround strategy and its ability to improve profit margins. The company reported 12% year-over-year revenue growth to $1.529 billion in its most recent quarter, with net losses narrowing to $89 million and adjusted EBITDA reaching $233 million. However, advertising revenue growth remained modest at 3% to $1.24 billion, despite a continued increase in daily active users to 483 million and monthly active users to 956 million. Snap has implemented cost-cutting measures, including layoffs affecting approximately 16% of its workforce, aiming for over $500 million in annualized savings by late 2026. The company is also investing in augmented reality initiatives, which adds to near-term cash burn concerns. Competitors Meta Platforms and Pinterest also saw slight declines, indicating broader softness in the ad-supported tech sector.