Snap-A has also not been able to meet the quarterly results and its price falls after their presentation. which accuse a slowing revenue and growing losses for signing in the middle of problems in the industryaccording to Hannah Murphy in the Financial Times.

The Los Angeles-based company reported Thursday that revenue increased 6% year-on-year to $1.13 billion, slightly below analyst expectations of $1.14 billion. Was the slower growth rate since the company went public in 2017.

The net loss increased 400% to $360 million, compared to $72 million a year earlier, roughly in line with expectations. This included $155 million in charges related to a drastic restructuring which included laying off a fifth of its 6,500-person workforce and reducing investment in initiatives including augmented reality goggles and video content production.

In a letter to investors Snap said that advertisers continued to cut marketing budgets due to macroeconomic headwinds such as inflation and rising costs of capital. The company also blamed the Increased competition and challenges around Apple’s privacy changes that have made it difficult for apps to target advertising and measure the success of campaigns.

Snap’s actions, which already had lost 77% of their value this year, fell more than 25% in post-close trading after the earnings release.

The dismal results from Snap, the first of the big tech companies to post earnings, suggested other ad-reliant companies could report similar pain in the coming weeks.

Facebook parent Meta and Google parent Alphabet fell 5 and 3%, respectively.while social media’s smaller rival, Pinterest fell more than 7% on the news.

“While these results are far from our aspirations, we are using this period of reduced demand to drive and accelerate changes to our advertising platform and auction dynamics which we believe will deliver better results for our ad partners in the long run,” Snap said.

Although the company did not provide aincome or earnings guide for the current quarter due to “uncertainties related to the operating environment,” said the revenue had grown 9% in the quarter so far.

Snap said he hoped revenue growth to slow through year-end. Assuming flat growth, he estimated adjusted earnings before interest, taxes, depreciation and amortization of about $200 million in the fourth quarter.

Evan Spiegel, CEO of Snapsaid, “This quarter we took steps to further focus our business on our three strategic priorities: growing our community and deepening their engagement with our products, re-accelerating and diversifying our revenue growth, and investing in augmented reality.”

The daily active users increased 19% year-on-year to 363 millionthe company said. He also announced a share buyback program for up to $500 million of its class A common stock.

Snap-A closed the session at $10.79 and the 70-period moving average is on the last candles.