‘Macro Environment’ Deterioration to Crimp Snap’s Q2 Revenue Growth: CEO

The global macroeconomic environment “has definitely deteriorated further and faster” than Snap expected April 21 when it issued second-quarter guidance for 20%-25% revenue growth, CEO Evan Spiegel told a J.P. Morgan investors conference Monday. Snap repeated the warning in an SEC filing Monday evening that sent the stock plunging 43.1% Tuesday, closing at $12.79. Though Snap’s revenue continues to grow year over year in Q2, it’s likely that revenue and profit “will come in below the low end of our guidance range,” said Spiegel. It’s “certainly something that we’re working through along with many other businesses” affected by supply chain issues, inflation, concerns about interest rates and the war in Ukraine, said Spiegel. “There’s a lot to deal with in the macro environment today,” he said. “Our general perspective and strategy has been to invest through it.” Though Snap is “changing some of the pacing” of its hiring, he said, “this is certainly going to continue to be a period of significant investment for the business.”