(SEC) Snap shares declined more than 28% in premarket on Tuesday after CEO Evan Spiegel warned it might report revenue and adjusted EBITDA below the low end of previous guidance.
In a filing with the Securities and Exchange Commission, Snap said that the macro environment had deteriorated faster than the company expected. The company, therefore, projects this will slow the revenue in the second quarter.
The CEO further warned that the company will slow down its hiring through the end of the year as the focus shifts to managing expenses. The social media company projects 500 new employees before the end of the year, compared to about 2,000 employees hired over the last 12 months.
Snap had issued guidance of between 20% to 25% growth in revenue in the second quarter. The adjusted EBITDA was expected at between $0 and $50 million.
SNAP: NYSE is down -28.57% in premarket.
