Snap Inc (NYSE:SNAP) stock rose 2.21% (As on Apr 22, 11:32:21 AM UTC-4, Source: Google Finance) after the company missed Wall Street expectations for profit and sales for the first quarter, and forecast disappointing revenue growth in the current quarter. Global Daily Active Users (DAUs) were 332 million versus 330 million expected, according to StreetAccount, up 18% year-over-year. DAUs increased sequentially and year-over-year in each of North America, Europe, and Rest of World. Average Revenue per User (ARPU) were $3.20 versus $3.25 expected, according to StreetAccount, up 16.8% year-over-year. The company has reported net loss of $360 million, compared to $287 million in the prior year. Adjusted EBITDA was $64 million, compared to $(2) million in the prior year. The company generated operating cash flow of $127 million, compared to $137 million in the prior year. Free Cash Flow was $106 million, compared to $126 million in the prior year.

SNAP in the first quarter of FY 22 has reported the adjusted loss per share of 2 cents, missing the analysts’ estimates for the adjusted loss per share of 1 cents, according to a Refinitiv survey of analysts. The company had reported the adjusted revenue growth of 38 percent to $1.06 billion in the first quarter of FY 22, missing the analysts’ estimates for revenue of $1.07 billion.

Meanwhile, Snap’s issues during the first quarter were on macroeconomic conditions, including advertisers who paused their campaigns after the Russian invasion of Ukraine in February.  Snap could continue to face a challenging operating environment that leads customers to pause their campaigns or reduce advertising budgets. Snap is also facing challenges related to Apple’s 2021 privacy change that makes it harder to target and measure ads on iPhones. However, the tool that the company created to improve the issue now accounts for 90% of the company’s direct response advertising revenue.

Moreover, Snap said that without a $92 million unrealized loss related to an investment it previously made that went public last year, the company’s net income would have improved 7% year-over-year. A Snap representative declined to name the investment.

Snap expected June quarter revenue to rise between 20% and 25%, lower than Wall Street’s estimate of 28%. It forecasts daily users at about 344 million, ahead of expectations of 341.4 million.

The company estimates adjusted EBITDA to fall between breakeven and $50 million in the second quarter.