Business

Snap shares plunge 30% in the wake of quarterly loss, layoffs

New York (CNN) — Shares of Snapchat parent Snap plunged on Tuesday after the company reported a loss in the final three months of 2023.

Posted 2024-02-06T21:29:14+00:00 - Updated 2024-02-06T21:28:37+00:00

Clare Duffy

, CNN

New York (CNN) — Shares of Snapchat parent Snap plunged on Tuesday after the company reported a loss in the final three months of 2023.

Snap reported a net loss of $248 million for the December quarter, an improvement from the same period in the prior year and a narrower loss than Wall Street analysts had expected. Still, shares fell as much as 30% in after-hours trading Tuesday.

The company also said revenue from the quarter grew 5% year-over-year to $1.36 billion, its second consecutive quarter of revenue gains after two earlier quarters of declines last year.

CEO Evan Spiegel attempted to strike an optimistic tone in the company’s earnings release, saying, “2023 was a pivotal year for Snap, as we transformed our advertising business and continued to expand our global community, reaching 414 million daily active users.”

But the report comes one day after the company announced it would lay off 10% of its staff, cutting around 500 jobs. The reductions signal that the company is still in cost-cutting mode after the company in 2022 laid off what was then 20% of its workforce, around 1,200 employees, and another 3% of its staff last year.

This is a developing story and will be updated.