Snap, which is led by one of its founders, Evan Spiegel, has been grappling with an industrywide ad slump that was brought on by a broader economic slowdown. Over the past year, the company has performed layoffs, reordered the priority of some of its business initiatives and reorganized some of its executives to deal with the challenges.

Yet even as slower ad spending has buffeted large tech companies such as Google and Meta over the past year, Snap’s issues have been particularly difficult. As a smaller social media company with a narrower audience, it is not always the first stop for advertisers. And it faces intense competition from rivals like TikTok, which has gained users more rapidly and is now bigger than Snap.

In the investor letter, Snap said it had made changes to its ad platform this year to try to increase the number of users who interacted with an ad after clicking it. But some large advertisers were “disrupted,” the company said, adding that the shift will nonetheless lead to “sustained revenue growth over time.”

To increase advertising, Snap has also tried attracting more creators with a revenue-sharing program and has tested sponsored links in its artificial-intelligence-powered chatbot, My AI, where users receive ads based on their chat history with the bot. To diversify where it makes money, Snap rolled out a subscription service called Snapchat+ last year, and it has gained more than four million users.

Even so, the company’s challenges are likely to continue. Jasmine Enberg, an analyst at Insider Intelligence, said these new initiatives were “not really enough to move the needle for the business just yet.” She added, “I don’t expect the ads business to start to turn around until the economy does.”