● Covered by 1 source · 1 reportMedium impact1 positive
Snap's Q2 Revenue and User Growth Exceed Estimates, Stock Jumps 10%
Key points
- Q2 revenue reached $1.6 billion, exceeding $1.54 billion estimate.
- Global daily active users grew to 493 million, above 487 million expected.
- Net loss narrowed to $164 million from $262.6 million year-over-year.
- Q3 sales forecast of $1.7 billion to $1.74 billion topped analyst estimates.
Strong Q2 Performance
Snap announced second-quarter revenue of $1.6 billion, surpassing the $1.54 billion analyst estimate. Global daily active users (DAU) reached 493 million, exceeding the 487 million expected. The company's net loss narrowed to $164 million from $262.6 million in the same period last year, and adjusted earnings were $250 million, above the $192 million estimate.
Positive Outlook for Q3
Snap projected third-quarter sales to be between $1.7 billion and $1.74 billion, which is higher than the analyst estimate of $1.7 billion. Adjusted earnings for Q3 are expected to be in the range of $300 million to $350 million.
Advertising Business Momentum
CEO Evan Spiegel noted improving momentum in the advertising business, particularly with large advertisers in North America and stronger international revenue growth. This follows previous quarters where large North American advertisers were a challenge. The company also benefited from World Cup-related spending.
User Growth and Infrastructure Investment
While global daily active users increased by 5% year-over-year, North American DAU declined by 7% to 92 million. Snap increased its full-year infrastructure costs by $50 million, setting the new range between $1.65 billion and $1.7 billion, to support additional investment in AI and machine learning infrastructure for revenue growth. The Snapchat+ subscription service contributed to an 85% year-over-year increase in other revenue categories, reaching $316 million.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Snap reported second-quarter revenue of $1.6 billion and 493 million daily active users, both surpassing analyst expectations. The company also provided a Q3 sales forecast that exceeded estimates, leading to a 10% jump in its stock price.