(New York) Snap, parent company of the social network Snapchat, recorded a further decline in its quarterly revenue, and expects to see the decline continue over the next three months, a table which took the group action.
The Santa Monica, Calif., company generated nearly $1.07 billion in revenue in the second quarter, down 3.8% year-on-year after a 7% contraction in the previous quarter, according to a statement released Tuesday. .
For the current quarter, Snap expects revenue to move within a range of a 5% year-over-year decline to flat.
Wall Street received this post poorly. The stock dropped more than 17% in electronic trading after the closing of the New York Stock Exchange.
Although the number of users continues to grow at a rate that all the other major social networks could envy, Snapchat is struggling to monetize its content, despite a constant stream of innovations and novelties.
At the end of June, the platform with the little ghost (its logo) claimed 397 million daily users, or 14% more than a year ago on the same date, and almost double the number of users of Twitter, renamed X Monday.
Snap announced that its paid Snapchat product, released a year ago, had reached 4 million subscribers.
It offers additional features to users, including the ability to track who has watched a story multiple times, the ephemeral videos posted on the platform.
In April, Snap launched MyAI, a conversational interface built on an artificial intelligence model, which has since been used by more than 150 million users.
In the second quarter, Snap took another net loss of $377 million, the largest in a year.
The group expects to cross the symbolic threshold of 400 million users in the third quarter, to reach 405 to 406 million at the end of September.
