Snap $SNAP reported second-quarter revenue of $1.6 billion on Monday, a 19% increase from a year earlier, as improving advertising momentum drove results ahead of analyst expectations. Snap stock jumped about 8% in extended trading.
Snap reported Q2 revenue of $1.6 billion, up 19% year over year, with daily active users reaching 493 million
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Snap $SNAP reported second-quarter revenue of $1.6 billion on Monday, a 19% increase from a year earlier, as improving advertising momentum drove results ahead of analyst expectations. Snap stock jumped about 8% in extended trading.
Revenue of $1.6 billion topped analyst expectations of $1.54 billion, according to CNBC. Adjusted EBITDA came in at $250 million, ahead of the $192 million estimate, according to CNBC. Snap's net loss shrank to $164 million, compared with $263 million during the same quarter last year.
Global daily active users reached 493 million, up 5% year over year, topping analyst expectations of 487 million. Average revenue per user rose to $3.25, compared with an estimate of $3.16. Monthly active users reached 971 million. North American daily active users declined 7% year over year to 92 million.
CEO Evan Spiegel said in an investor letter that the company "saw improving momentum in our advertising business." He noted "better momentum with large advertisers in North America and stronger revenue growth internationally," and said Snap got a boost from spending tied to the World Cup. Snap's non-advertising revenue segment, which encompasses the Snapchat+ subscription offering, climbed 85% from a year earlier to $316 million in Q2.
Looking ahead to the third quarter, Snap forecast revenue in a range of $1.7 billion to $1.74 billion, which would clear the consensus analyst estimate of $1.7 billion. The company said adjusted earnings for the period will be between $300 million and $350 million.
The results mark a rebound from a difficult stretch for the company. Earlier this year, Snap cut about 1,000 employees — roughly 16% of its full-time workforce — citing AI-driven efficiency gains, with Spiegel saying the reductions were expected to lower annualized expenses by more than $500 million by the second half of the year. Snap's full-time employee count fell to 4,723 in the second quarter from 5,381 in the first quarter.
Snap also ended a $400 million AI search partnership with Perplexity ahead of its first-quarter earnings report in May. At the time, Snap projected second-quarter revenue of $1.52 billion to $1.55 billion and acknowledged that big North American advertisers had continued to weigh on results, while also noting early indications that conditions in that segment were starting to turn around.
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