The company posted a net loss of $288.5 million, or 18 cents a share, including $34 million in charges from its workforce restructuring. That compared to a profit of $23 million, or one cent, a year earlier.
Snap ended the fourth quarter with 375 million daily users, a 17% increase. In the first three months of the year, the company estimates 382 million to 384 million people will use its platform daily.
Snap has become a bellwether for other digital advertising companies. Last year, it was the first to raise concerns about the slowdown in marketer spending online and to fire a significant number of employees—20% of its workforce—to cut costs in the face of falling revenue.
The company has spent the last two quarters refocusing the organization, cutting projects that don’t contribute to user and revenue growth.
In the first quarter, Snap expects the environment to “remain challenging as we expect the headwinds we have faced over the past year to persist.”
Investors will get additional information about the state of the digital ad market when Meta and Alphabet report earnings later this week.