Troubled Times For Snapchat As Its CEO Loses 83% Of His Wealth While App Struggles With Losses

Snapchat has been going through some rough times recently and that includes the company’s CEO Evan Spiegel watching his fortune decline massively.

The co-founder and CEO of the renowned platform saw 83% of his wealth fall and that’s a significant amount. Think along the lines of a net worth comprising $13.9 billion that fell to $2.3 billion in just one year’s timespan. These estimates were provided recently by Bloomberg’s Index so as you can see, the picture is not pretty.

The same scenario was witnessed by Snapchat’s CTO whose wealth declined by 81% since Friday.

Recently, we saw the popular digital app put forward its earnings reports for Q3 of 2022. And that’s when a net loss comprising $360 million was announced for the third quarter. That’s up from the mega $72 million loss that was seen during the same time period last year.

A lot of the loss had to do with $155 million used in restructuring costs and also plenty of losses incurred thanks to advertising struggles where business just wasn’t coming in. In addition, the growth of users came to a standstill.

Until today, the total number of daily active users across the app continues to grow, but it’s not where it should be. By September end, it had reached a staggering 363 million and is still growing. And while the 19% of YoY growth is taking place, it’s too slow.

In May of this year, the CEO went public with his desire to reduce hiring, right before announcing plans of laying off employees that entailed about 20% of staff. Similarly, they were forced to shut down so many of their projects around the way too.

Now, they’re simply targeting ways to monetize, grow their revenue, and have older and more loyal users stick to the app and not wander away. Let’s not forget how the platform’s advertising department is extremely focused because that’s where the most revenue can be generated.

There are also a few reports speaking about the platform giving away its San Francisco office lease, as reported by the Insider recently. A source that was close to the firm said the news but couldn’t be identified for obvious reasons of privacy.

But Snapchat is clearly optimistic about the future and turning its attention to places where it feels need the most work.

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