Snap reported second-quarter financial results that exceeded Wall Street projections, with shares rising more than 8% in pre-market trading. The Santa Monica-based company generated revenue of $1.60 billion, surpassing analyst estimates of approximately $1.54 billion. The company also posted a quarterly loss of $0.10 per share, representing an improvement from the equivalent quarter in the prior year.
Advertising revenue, the company’s primary revenue driver, climbed 9% year over year to $1.28 billion during the quarter. Marketing spending related to the FIFA World Cup contributed meaningfully to the period’s performance, capitalizing on heightened audience engagement generated by the tournament. Chief Executive Officer Evan Spiegel noted that the company observed improving momentum with large advertisers in North America and stronger international revenue growth, while small and medium-sized businesses maintained their spending levels.
Supplemental revenue streams, including Snap’s premium subscription service, expanded significantly with an 85% year-over-year increase to $316 million. Daily active users reached 493 million in the second quarter compared with 483 million in the preceding quarter. Monthly active users similarly grew from 956 million to 971 million over the same period.
The company attributed part of its improved performance to ongoing cost reduction efforts, including a previously announced 16% workforce reduction, alongside expanded integration of artificial intelligence across operations. Looking ahead, Snap projected third-quarter revenue between $1.70 billion and $1.74 billion and adjusted EBITDA of between $300 million and $350 million. Analysts characterized the results as reflecting meaningful progress on operational metrics and cash generation while maintaining top-line growth.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI