After missing Wall Street expectations in Q1 earnings, shares of Snap, Snapchat’s parent company, plummeted 20%.
While its net loss shrank from $360 million to $329 million, Snap’s sales fell 7 percent to $989 million from $1.063 billion in the year-ago period.
The $103 million in free cash flow was down from the $106 million in the previous year.
The company announced a 15% rise in DAUs year over year, bringing the total to 383 million.
According to CEO Evan Spiegel, “our community continues to grow, reaching 383 million daily active users in Q1,” and the company is “working to deepen engagement with the content platform” while also “building innovative new features and services like My AI.”
“We are working to accelerate our revenue growth and using this opportunity to make significant improvements to our advertising platform to help drive increased return on investment for our advertising partners,” he continued.
Snap forecasted revenue of $1.04 billion for the second quarter of 2023, which was below the $1.10 billion predicted by analysts.
Snapchat’s new ‘My AI’ chatbot is AI-powered and available to all users. It provides users with personalized recommendations based on their location and interests, as well as access to relevant augmented reality lenses and content from the Snap Map.
The firm reported that in the first quarter of this year, Spotlight had 350 million average monthly active users, up 46 percent from the same period last year, and that total time spent watching Spotlight content increased by more than 170 percent.