Both Twitter and Snap reported second quarter revenues that were below analyst expectations.
While Snapchat revenues rose 13% to $1.11 billion compared to Q2 2021, the increase still left analysts feeling disappointed.
Snap also revealed $422 million in losses for the quarter and did not issue future guidance.
The company cited reduced marketing spending in some regions for the lower-than-expected results. Competition from social giants such as TikTok is also adding pressure.
However, the app grew its daily average number of Snapchatters by 40% while time spent viewing Spotlight content on the app jumped 59%.
Twitter revenues dropped 1% to $1.18 billion compared to Q2 2021 and it’s not hard to see why given its takeover issues and law suit with Elon Musk.
Earlier this year, Musk stated his intention to acquire Twitter for $44 billion but withdrew his offer over a backlash in July. Twitter has now sued Musk but we’ll have to wait for the outcome of the trial until October which is adding uncertainty to the company’s results.
Going forward, Snap has plans to continue its investment in new ad and user products and platforms as well as revenue sources.
Both apps now offer a subscription service for users and the impact on revenues of those remains to be seen.