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• The company will also slow hiring through the end of the year
Snap Inc (NYSE: SNAP) shares fell 30% in extended trading on Monday after CEO Evan Spiegel said the company will miss revenue and earnings target in the current quarter.
The company had expected revenue growth between 20% and 25% and adjusted earnings of between $0 and $50 million.
“Today we filed an 8-K, sharing that the macro environment has deteriorated further and faster than we anticipated when we issued our quarterly guidance last month,” said Spiegel.
“As a result, while our revenue continues to grow year-over-year, it is growing more slowly than we expected at this time.”
In April, the maker of the Snapchat app had missed Wall Street expectations for sales and profit in the first quarter.
Hiring slowdown
Spiegel said the company will slow hiring through the end of the year as it faces challenges from rising inflation, supply chain shortages and labor disruptions.
He expects, though, to hire 500 new employees before the end of the year.
Picture Credits: Bloomberg News
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