Snapchat’s Results For Q3 Of 2022 Are Out And The Sluggish Results Are A Disappointment

Snap Inc. has reported sluggish growth during the third quarter of this year. It’s not quite what executives had hoped for as the results were put up in single digits in terms of revenue generation.

A total of $1.1 billion was observed and that’s a mere 6% increase from Q3 of 2021.

A letter was sent out by the firm to investors on Thursday where it outlined how business was affected by several headwinds during this period. Hence, the goal of the app is now to focus on a series of priorities.

These were highlighted to be better growth, deeper engagement, and diversification in terms of revenue growth and more investment in modern forms of AR technology. They seemed optimistic about achieving success in such an environment considering the great levels of inflation taking center state at the moment. Let’s not forget how the rate of interest is also at an all-time high and with political tensions also arising, the task won’t be easy.

But the goal is also to focus more on advertising success with all stakeholding partners.

It’s not easy for any business to put up strong results during a period of the global economic downturn but what’s important is to learn from mistakes and bring back investments that may have been lost.

The only problem here for Snapchat is that it's going to have to decrease the budget set out for advertising purposes, considering the results obtained in Q3 of this year as marketers make their way to those channels where they’ll find the most success.

Snapchat has outlined how a total of 363 million users were active by the end of this period and that’s almost a 20% rise. But it hopes to bring that up further to nearly 373 million by Q4 of 2022.

Snap found that the growth in daily active users was seen across different parts of the world. There was a lot of strength seen in parts of North America but experts claim that won’t be enough to counteract the slowcore market.
Snapchat targets a lot the age groups between 13 to 34 and it’s seen in nearly 20 different nations. On average, users are creating 5 billion snaps each day with the application. Also, it was noted how the time users spent watching content on the app was up by a good 55% YoY. Here is where the monthly user count reached 300 million for Q3.

Moving on to Snapchat+, it reached a good 1.5 million subscribers who were keen on paying a little extra a month to attain some extra services. But what was disappointing for the app is how it hoped to diversify out of the usual ad services for its business revenue. But with only a user base of 1.5 million on Snapchat+, it’s still going to be placing great reliance on ads across the board.

The current economy is going to make users think twice between they opt to spend a little extra on such features and these types of headwinds aren’t great news for the firm. They hope to grow their business in terms of subscriptions further.

Some experts called this the most difficult period of the app in recent times. There’s not much to celebrate at all and the Q3 earnings reports are proving how it’s a combination of the poor economic situation, privacy changes thanks to tech giant Apple, and also a lot of competition thanks to archrivals like TikTok.

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