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Saturday, March 25, 2023

Snapchat plunges 15% on Wall Street after losing $288 million in the quarter

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The company’s operating cash flow was $125 million, up from $186 million in the same period last year, and free cash flow was $78 million, up from $161 million previously.

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In the whole of the year, revenue increased 12% to $4.6 billionY the net loss was 1,430 millionincluding restructuring expenses of $189 million, and compared to the red numbers of $488 million in 2021.

The company assured that it has registered its third consecutive year of positive adjusted EBITDAat $378 million, and the second year of positive operating cash flow and free cash flow, at $185 million and $55 million, respectively.

The causes of the collapse

In a letter to investors, Snap explained that a weakening economy, increased competition from other social media platforms and “platform policy changes” continued to hurt its business in the fourth quarter.

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Snap announced on Tuesday that current quarter revenue could decrease by up to 10%which also motivated the strong cuts in their titles.

The company will celebrate its investor day on February 16th to detail his plan for moving forward after announcing in August that he would lay off 20% of his workforce and suspend experimental projects, such as a camera drone, to cut costs.

Source: Ambito

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