In the fiscal year 2022 (FY22), Snap Camera India Ltd, the parent company of Snapchat, increased its revenue in India by a factor of two, from Rs 33 crore in FY21 to Rs 66 crore in FY22. Its net profit increased by 114% to Rs 6.2 crore in FY22, and its expenses nearly doubled, from Rs 28 crore in FY21 to Rs 57 crore in FY22. Snapchat recently introduced its premium subscription service, Snapchat+, in India.
A sizable portion of Snapchat’s revenue comes from advertisements. The business, which entered the Indian market in 2019 and has an estimated 150 million users there, saw a 114% increase in net profit for the fiscal year ending in February 2019 to reach Rs 6.2 crore. A significant portion of Snapchat’s income comes from advertisements. In August 2022, it also introduced Snapchat+, a premium subscription service, in India.
Snap, on the other hand, has seen a global slowdown in growth. It recently reported quarterly revenue of $1.3 billion, which was nearly unchanged from the previous year. Its revenue increased 12% overall for the entire year, which was slower than expected. The main causes of the growth slowdown have been attributed to global economic constraints, weaker advertiser demands, increased competition in the social media market, disruptions to its ad business caused by Apple’s changes to app privacy, high interest rates, and inflation. In the most recent quarter, things seem to be getting worse.
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According to Snap, its first-quarter revenue is already down 7% from the same period last year. According to the forecast, revenue will be down between 2% and 10% from the same period last year. Additionally, Snap reported a net loss of more than $288 million for the quarter, as opposed to a net profit of $22.5 million during the same time last year. The announcement marked Snap’s fourth consecutive quarter of net losses.
