Snapchat Won’t Be Meeting Its Revenue Targets For The Quarter, Confirmed The Company In Its Latest Filing

Snapchat has recently delineated in its latest filing that shows how it would fail to meet its revenue targets that were predicted for this quarter. And that included a hint at how they’ll be slowing down the hiring process for this year as well, keeping these reports in mind.

The company’s CEO broke the news to his employees on Monday and as you can imagine, it’s not the best feeling in the world when you fail to meet the expectations that were initially laid out from the start.

Meanwhile, the app’s parent company mentioned how a huge part of these findings had to do with the current economic situation, adding how it continues to worsen with time.

“It’s taking place at a rate that not too many of us predicted or anticipated”- he revealed during the filing.

On the other hand, media outlet Reuters was quick to add how it recently took a glance at a memo that had been issued and that talked about a great many hurdles that Snapchat faces currently. A special mention was given to issues like inflation, the ongoing Russian and Ukrainian conflict, and the crisis relating to shortages of supply chains.

But there’s more bad news for the company as it recently also saw a drop in its shares by nearly 28%.

In the previous month, Snapchat went public with its forecast for Q2, keeping in mind the revenue growth that it had recently experienced. And those values of growth varied between 20% to 25%.

The news comes at a time when other leading companies also shed light on how they would also be saving up on costs by stopping the hiring process in their films. Common names included Meta Platforms and Uber Technologies.

The memo further elaborated on how Snapchat would take other decisions like budget considerations after careful evaluation while leading members are told to keep a keen eye out when reviewing the company’s spending.

And as you can imagine, that’s related to finding more ways through which they can save up on costs.

The hiring process will eventually be pushed to the following year, but that doesn’t mean they’re going to completely stop hiring for this year.

As the company says they do need at least 500 people on board before the year ends so that is a signal of how hiring employees is still in the picture, but obviously not to the extent that they would have liked.

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