Snap suffers a loss of $ 422 million due to a decline in advertising revenue

Snapchat parent company Snap lost about $422 million last quarter. In the same quarter last year, that was still $ 151.7 million. The loss is due to disappointing revenue from ads in the photo app, says Snap.

In the published quarterly figures shows that Snap’s revenue for the past quarter amounts to $ 1.1 billion. That’s slightly more than revenue from the same quarter last year, which was about $982 million. However, the loss suffered this time is more than twice as much. “While the continued growth of the Snapchat community increases long-term opportunities for our company, last quarter’s financial results do not reflect our ambition,” Snap CEO Evan Spiegel wrote.

Snap says some advertisers are still dealing with supply chain disruptions and labor shortages. Advertisers are also facing rising costs due to inflation, which has led to cuts in advertising spending, according to Reuters.

To reduce losses, Snap wants to work on revenue streams other than ads and adjust its strategy, Spiegel says. Last month, Snapchat introduced a subscription plan, which gives users access to “exclusive, experimental, and pre-release features.” The subscription costs $4 a month and is now only available in the United States, Canada, United Kingdom, France, Germany, Australia, New Zealand, Saudi Arabia and the United Arab Emirates.