HomeOthersFollowing this week’s layoffs, Snap’s stock tanks 30% on Q4 revenue

Following this week’s layoffs, Snap’s stock tanks 30% on Q4 revenue

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Introducing Snapchat+
  1. Snap reported layoffs of 10% of its workforce, triggering a stock drop of over 30% after a fourth-quarter earnings miss.
  2. Daily active users increased by 10% year-over-year to 414 million, but only slightly from the prior quarter, disappointing investors.
  3. Snap’s revenue of $1.36 billion fell short of expectations, though it beat earnings per share estimates.
  4. First-quarter outlook for 420 million daily active users and $1.095 to $1.135 billion in revenue also disappointed investors seeking faster growth.
  5. Struggles to expand beyond its core app, with hardware projects like Spectacles and Pixy drone failing to gain traction. The ARES division was shuttered.
  6. Augmented reality appears to be losing ground to more advanced AI filters, particularly on TikTok.
  7. Snap is investing in AI capabilities through Lens Studio but faces competition. Efforts in AI-powered enhancements and chatbots have been inconsistent.
  8. Despite challenges, Snap’s paid subscription product, Snapchat+, has 7 million subscribers with a revenue run rate of $249 million in 2023.

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