Snap Inc. shares plunged by 33% to $11.72 in after-market trading following the company’s disappointing earnings report for the foruth quarter. The software giant generated a revenue of $1.36 billion for the three months ending December 31, missing Wall Street analysts’ expectations of a $1.38 billion revenue as reported by LSEG.
While daily active users of 414 million for the quarter actually beat estimates of 411.6 million users, full-year revenue remained stagnant at $4.6 billion, the same as the previous year. With the company focused on securing its growth in the new year, Snap announced that it would be retrenching 10% of its workforce or 528 employees.
Looking forward, Snap has forecast a revenue ranging between $1.1 billion and $1.14 billion for the first quarter of 2024, with analysts expecting around $1.1 billion. The company expects its daily active users to grow to 420 million.