Snap, the parent company of the Snapchat app, experienced its most limited quarter-on-quarter growth in Q3. The American company is suffering a lot from declining advertising spend and declining marketing budgets at companies.
Revenues rose 6 percent compared to the same period last year to $1.1 billion. Snap failed to meet analyst expectations. A net loss of $360 million was also recorded.
The red figures are partly attributable to reorganization costs. Snap will say goodbye to 20 percent of its workforce, it was announced in the summer. The group is also cutting its investments sharply because of the disappointing income from advertising.
The Snapchat app, with which you can share photos and videos on your smartphone, gained 57 million daily active users last quarter. In total, 363 million people worldwide now watch Snapchat every day.
The app is especially popular with younger users because of its many features where they can adjust photos. For example, it is possible to change someone’s face so that he or she resembles a dog.
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