Snap (NYSE: SNAP) is in cost-cutting mode as it recently announced layoffs and plans to bring its expenses down. It's a move that is overdue, and one that is needed for the business to become a more tenable investment. But as the following charts will demonstrate, it's not just expenses that are a problem for the tech company.
Snap is in a tough spot, having to fight for the attention of teens and young adults among a myriad of social media apps. And its features aren't unique; augmented reality, for example, is available on many types of apps.
The positive is that the company is still growing its user base. It reported 347 million daily active users as of the period ending June 30, representing a year-over-year growth rate of 18%. But Snap's top line hasn't been as strong because advertisers have been cutting back on spending amid inflation. Last quarter, the company announced that its year-over-year growth rate had slowed since going public:
Source Fool.com