Snap Inc. stock fell more than 30% in the extended session Monday after the Snapchat parent said it likely will miss quarterly estimates as the economy has “deteriorated further and faster than anticipated.”

Snap
SNAP,
-3.40%

said in a filing it is likely to report revenue and adjusted EBITDA below the low end of its second-quarter guidance.

The company said in late April it expected second-quarter revenue growth between 20% and 25% year-on-year, and EBITDA between breakeven and $50 million.

It reported second-quarter 2021 revenue of $982 million, and analysts polled by FactSet expect second-quarter 2022 revenue of $1.2 billion.

As a result of the macroeconomic conditions, “it is likely that we will report revenue and adjusted EBITDA below the low end of our Q2 2022 guidance range,” the company said in the filing.

“We remain excited about the long-term opportunity to grow our business,” the company said. “Our community continues to grow, and we continue to see strong engagement across Snapchat, and continue to see significant opportunities to grow our average revenue per user over the long term.”

The Wall Street Journal reported late Monday that Snap told employees that it will slow the pace of hiring and look for more cost savings in the remainder of its 2022 budget. Still, 2022 remains “a significant investment year,” the company said in an internal memo, the Journal reported, and it still plans on adding 500 more employees by year’s end.

Shares of other tech companies also dependent on advertising fell after Snap’s news, with Meta Platforms Inc.
FB,
+1.39%

stock down nearly 9% in the late session, Pinterest Inc.
PINS,
-1.40%

stock falling 16%, and Twitter Inc.
TWTR,
-1.12%

stock down nearly 4%.

Shares of Snap ended the regular trading day down 3.4%. So far this year, the stock has lost 52%, compared with a decline of around 17% for the S&P 500 index
SPX,
+1.86%
.

Original Source