Turns to a net loss in the quarter – The Hollywood Reporter

Snap, the parent company of Snapchat, hit $1.06 billion in revenue during the first quarter, falling within its modest forecast of reaching between $1.03 billion and $1.08 billion in revenue, but suffered a net loss as Apple’s iOS privacy changes continue to impact Snap’s advertising. Business.

Despite hitting net profit for the first time since its 2017 IPO in the fourth quarter, Snap posted a net loss of $359.6 million for its latest quarter. In prepared remarks, Snap CFO Derek Anderson attributed the loss to a “$100 million year-over-year decrease in other income, primarily due to an unrealized loss of 92 million on an investment that went public in the second half of 2021.”

Daily active users reached 332 million, up from 319 million last seen at the end of 2021. The company noted that it had also seen growth in submissions to Spotlight, Snapchat’s competitor on TikTok, but n shared no updated figures on the number of users. .

“The first quarter of 2022 was more challenging than expected, and our team was able to make meaningful progress against our goals despite an increased volatility in the operating environment,” Snap CEO Evan Spiegel said. in prepared remarks released Thursday. “While we are pleased with our progress given the macroeconomic environment, we also recognize that we have a lot of work to do to realize our long-term opportunity.”

Heading into the next quarter, Snap didn’t disclose a specific revenue target — as it typically does — but projected year-over-year revenue growth of between 20% and 25%. Anderson said supply chain disruptions, labor shortages, inflation and “the impact of the war in Ukraine on input costs, marketing budgets and overall economic confidence” will negatively impact second quarter performance.

Next week, Snap is expected to launch new products at its Partner Summit on April 28. The company will also host its first in-person NewFronts presentation at Jazz at Lincoln Center on May 3 with Spiegel, chief commercial officer Jeremi Gorman, chief marketing officer Kenny Mitchell, vice president of sales Peter Naylor, global head of Arcadia Resh Sidhu and chief content officer. Original Vanessa Guthrie.

Ann J. Cox