Snap saw its stock value slip by 25% in extended trading on Thursday after the company missed revenue estimates in Q3.
The company saw its revenue grow by 6% from a year before — marking the first time it reported single-digit growth since it went public in 2017.
Despite the revenue growth and a surprise adjusted profit, the company saw its net loss spike by 400% to $360 million, partially resulting from its $155 million restructuring effort.
“Our revenue growth continued to decelerate in Q3 and continues to be impacted by a number of factors we have noted throughout the past year, including platform policy changes, macroeconomic headwinds, and increased competition,” Snap told investors.
The losses resulted from a decline in the company’s advertising revenue — a trend it expects to continue into the next quarter.
“We are finding that our advertising partners across many industries are decreasing their marketing budgets, especially in the face of operating environment headwinds, inflation-driven cost pressures, and rising costs of capital.”
Given these challenges, the company declined to offer guidance for Q4, the second consecutive quarter it has decided not to provide any projections.
“Forward-looking revenue visibility remains incredibly challenging, and this is compounded by the fact that revenue in Q4 is typically disproportionately generated in the back half of the quarter, which further reduces our visibility,” the company said.