Evan Spiegel, CEO of Snap Inc., announced that the company will withhold second-quarter guidance amidst economic uncertainties, causing a 15% drop in share prices. Despite achieving 14% year-over-year revenue growth to $1.36 billion, headwinds persist affecting advertising demand. Snap's finance chief noted that changes to the de minimis exemption could impact advertisers. The company also reported a narrowed loss of $140 million and ongoing user growth, with daily active users increasing to 460 million. Snap remains cautious about investment levels relative to revenue growth and ongoing macroeconomic challenges.
"While our topline revenue has continued to grow, we have experienced headwinds to start the current quarter, and we believe it is prudent to continue to balance our level of investment with realized revenue growth."
"Some advertisers are already seeing an impact from changes to the de minimis exemption... President Trump's shifting tariff plans have created an unsettling backdrop for companies this earnings season."
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