Snap (SNAP, Financials) took a hit Tuesday, with shares sliding 14% after the company reported a surprise quarterly loss and chose not to offer any guidance for the months ahead. Management pointed to macroeconomic uncertainty, but the lack of visibility didn't sit well with investors hoping for reassurance.
That said, Snap's core business showed signs of life. Revenue climbed 14% year over year, helped by a 9% increase in daily active users. Even in a tough ad market, people are still using the appand that engagement helped drive stronger-than-expected top-line results.
The company also made meaningful strides on the financial front. Operating cash flow jumped 72% to $152 million, and free cash flow more than tripled to $114 million. Those numbers suggest Snap is learning to do more with less, tightening operations without losing its growth engine.
But the decision to stay quiet on guidance cast a long shadow. For investors, uncertainty is often worse than bad news. Without a clear picture of what's coming, the gains in users and cash flow weren't enough to shore up confidence.
Looking ahead, Snap's challenge is twofold: keep users engaged and prove it can turn that engagement into sustainable profits. Until then, Wall Street may remain wary.
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