![]() ![]() Projects that don’t directly contribute to these areas will be discontinued or receive substantially reduced investment. We are restructuring our business to increase focus on our three strategic priorities: community growth, revenue growth, and augmented reality. While we have built substantial capital reserves, and have made extensive efforts to avoid reductions in the size of our team by reducing spend in other areas, we must now face the consequences of our lower revenue growth and adapt to the market environment. Unfortunately, given our current lower rate of revenue growth, it has become clear that we must reduce our cost structure to avoid incurring significant ongoing losses. The investments we have made in our business to-date assumed a higher rate of revenue growth based on our vast opportunity and our proven history of execution, including 2x growth in the size of the Snapchat community and 10x growth in trailing twelve month revenue since our IPO in 2017. For planning purposes we have modeled a range of outcomes, some of which assume that low revenue growth continues into next year, and we have built our 2023 plan to generate free cash flow even in a low growth scenario. While we will continue our work to reaccelerate revenue growth, we must ensure Snap’s long term success in any environment. Our forward-looking revenue visibility remains limited, and our current year-over-year QTD revenue growth of 8% is well below what we were expecting earlier this year. Thank you for your patience as we have worked through our 2023 financial planning and reprioritization process. ![]()
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