The company's stock plunged after it reported disappointing sales and a decline in ad spending. The shares of Meta Platforms and Alphabet fell together.

The company said Thursday that it had revenue of $1.11 billion in the second quarter. The company missed its initial growth guidance after telling investors to ignore it.

The company attributed the budget cuts to the economic uncertainty. The popularSnapchat app had 347 million daily active users in the third quarter. The growth of its user base outpaced its competitors. It wasn't sufficient.

The company said in an investor letter that platform policy changes and increased competition have limited the growth of campaigns. The results don't reflect the scale of our ambitions. Regardless of the current challenges, we are dissatisfied with the results we are delivering.

The company did not give financial guidance for the third quarter because of the economic uncertainty. The company had a net loss of $422 million in the second quarter.

After the market closed, the shares fell as much as 28%. Prior to the announcement, the stock had fallen by over sixty percent. The strategy of limiting hires has been told to employees by management and will be reduced.

The Santa Monica, California-based company's board authorized a stock buy back program of as much as $500 million in the next year to help offset the issuance of shares for employee compensation.

If the shares reach $40 in the next 10 years, the board authorized a stock split that would allow the co- founders to sell or donate their shares. One additional share would be given to holders of Class A shares, which are traded by investors. The Class B and C shares of the company would be held by the founders, which would allow them to control more of the company's voting rights.

Evan Spiegel and Bobby Murphy have agreed to serve in their roles as chief executive officer and chief technology officer until at least January 1, 2027, according to the company. Executives will be paid $1 a year.

The performance of other advertising dependent social media businesses will be watched closely by investors. Several companies report earnings this month.

Advertising dollars are hard to come by at a challenging time. Companies and consumers are feeling the effects of inflation. New rules from Apple have made it harder for advertisers to measure and manage their ad campaigns.

To weather this environment, Spiegel is investing in initiatives that continue to grow its user base, improving its direct-response advertising business and how it measures ad spending, and finding new sources of revenue to broaden the company.

A number of user focused tools were rolled out by the company. Power users of the service can access exclusive and experimental features for a monthly fee. Users in certain markets were able to use Snapchat for Web to call and chat. The company launched a flying camera drone that can land in the palm of the user's hand.