Snap announced second-quarter revenue of $1.07 billion, up from the first quarter but down from the same period last year. With sales down 7% from the prior year in the first quarter, Snap experienced its first revenue decline as a publicly traded business.
Sources claim that as part of a reorganization attempt, Snap, the parent company of Snapchat, plans to let go of 150 workers, mostly from its augmented reality (AR) business. Although Snap hasn’t made an official statement about the situation, the firm might do so later this week.
This choice followed Snap’s action in August 2022, when it let go of 20% of its personnel, or around 1,280 workers out of a total workforce of 6,400. Evan Spiegel, the CEO of Snap at the time, underlined the necessity for the business to change with the times and slow revenue growth.
In the second quarter of this year, Snap’s revenue totaled $1.07 billion, up from the first quarter but down from the same period last year. With a 7% reduction in sales from the prior year, Snap saw its first revenue decline as a publicly traded business in the first quarter.
Snap anticipates having between 405 million and 406 million daily active users (DAUs) during the third quarter. The business added that it is going through a phase of rapid change in terms of revenue as it works to enhance its advertising platform and contend with dimly seen advertising demand.
Over 200 million monthly active Snap chatters in India marked a key milestone for Snap in May of this year. More over 120 million of these users were actively interacting with material on the Snapchat app’s fourth and fifth tabs, Stories and Spotlight.
The most recent restructuring initiatives by Snap point to the company’s continued efforts to better its financial performance and adjust to changing market conditions.
