Snap Declines Q2 Forecast Amid Economic Concerns, Shares Drop 13%:

Suspense crime, Digital Desk : Snap Inc. declared on Tuesday that it won’t provide a financial outlook for the second quarter of 2025. This forecast was omitted due to ongoing economic uncertainties and possible U.S. tariffs effects on economy Snap’s stock plummeted 13% in after-hours trading.

Snap is struggling with the digital ad market due to fears that advertisers will shift their focus to bigger platforms such as Facebook and Instagram. Even after solid performance in the first quarter, Snap is still navigating through tough waters.

Advertisers from small and medium-sized businesses have started pouring in. This, coupled with the 59% increase in Snapchat+ subscribers during the first quarter, reaching 15 million, ensured advertiser and subscriber growth during Q1.

These leap frog increases have led to an increase of 60% in the total active advertisers in Q1 year over year, showcasing the momentum targeted toward smaller business clientele. Direct response advertising—formats crafted to motivate specific behavorial ads—boosted Snap’s revenue.

Increase Snap’s numbers cautiously brought the company above expectations.

Snap’s revenue saw a 14% increase to $1.36 billion, which is higher than Wall Street’s average estimates of $1.35 billion. Adjusted EBITDA (EBITDA without consideration for interest, taxes, and depreciation) also exceeded expectations at $108.4 million as opposed to $64.7 million.

The company also exceeded the projections for user growth. There was a 9% increase in daily active users, totaling 460 million which outperformed expectations of 458.3 million. Furthermore, Snap’s monthly active users grew to 900 million which keeps the company on track to hitting 1 billion.

In addition to this, Snap lowered their full year forecast for adjusted operating expenses to $2.65 billion-$2.70 billion range, which is a slight drop from their earlier guidance.