![]() Snap said that even some relatively healthy businesses were curbing their commitments because of the "input cost pressure due to inflation." ![]() Additionally, a challenging economy, Apple's 2021 iOS update and increased competition from companies like TikTok have led marketers to pull back on their spending. Snap attributed its disappointing results to slowing demand for its online ad platform. The company said it now plans to "substantially slow our rate of hiring, as well as the rate of operating expense growth." "The second quarter of 2022 proved more challenging than we expected," Snap said in the investor letter. At the time, Snap cited a macroeconomic environment that was deteriorating much faster than expected. In May, Snap said it wouldn't meet the second-quarter guidance it set the prior month, leading to a 43% plunge in the share price. It's the latest chapter in a tough year for Snap, whose stock has lost almost two-thirds of its value in 2022. "We are not satisfied with the results we are delivering, regardless of the current headwinds," the company said in the letter. Analysts were expecting sales growth of 18% for the third quarter, according to Refinitiv. In its investor letter, Snap said it's not providing guidance for the third quarter because "forward-looking visibility remains incredibly challenging." The company said that revenue so far in the period is "approximately flat" from a year earlier.
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