Snap Inc. co-founders Evan Spiegel and Bobby Murphy have reportedly seen their net worth drop precipitously in a year.
Bloomberg reported that Spiegel’s net worth fell by more than $11 billion between Friday and the same date a year earlier. The Snap CEO’s net worth on October 21, 2021 was $13.9 billion, while this afternoon it stood at roughly $2.3 billion, according to the outlet.
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Murphy’s fortune has also reportedly seen a significant drop. On Friday, the CTO’s net worth was about $1.9 billion, a decrease of about 81%, according to Bloomberg.
The pair have a combined roughly 25% stake in the company behind the social media app Snapchat, according to Forbes.
Snap released its third-quarter earnings on the Thursday after the bell, causing the company’s shares to drop the following day. Its shares are down more than 80% so far this year, Fox Business previously reported.
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The company said it generated $1.13 billion in revenue in the third quarter, a 6% increase from the same period last year when it posted $1.08 billion. That metric was below analyst estimates. Meanwhile, his net loss widened from about $72 million to $360 million.
Factors such as “platform policy changes, macroeconomic headwinds and increased competition” weighed on Snap’s revenue growth in the quarter, the company said in its quarterly letter to investors.
“We are finding that our advertising partners in many industries are reducing their marketing budgets, especially in the face of operating environment headwinds, cost pressures driven by inflation and rising capital costs.”
Snap said it saw “declining brand-facing ad spending” and “lower bids per share and lower overall campaign budgets.”
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Spiegel announced in August that the company would cut its workforce by 20% amid restructuring efforts.
Lucas Manfredi contributed to this report.