Snap shares plunge 23% after earnings

Investing.comAug 1, 2024 8:20 PM

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Snap reported mixed second-quarter results and provided disappointing guidance, sending its shares tumbling 23% in after-hours trading.

The social media company posted adjusted earnings per share of $0.02 for the quarter ended June 30, while analysts were looking for a loss per share of 16 cents. However, revenue came in at $1.24 billion, slightly below the consensus forecast of $1.25 billion, growing 16% YoY.

Snap's third-quarter revenue guidance of $1.335 billion to $1.375 billion, implying 12% to 16% YoY growth, fell short of market expectations.

The company also projected adjusted EBITDA between $70 million and $100 million for Q3.

Daily active users (DAUs) increased 9% YoY to 432 million in Q2, while monthly active users surpassed 850 million.

Snap's CEO Evan Spiegel highlighted the platform's growth, stating, "Our community grew to reach more than 850 million monthly active users in Q2, with more than 11 million Snapchat+ subscribers."

The company reported that its total active advertisers more than doubled YoY in Q2, driven by momentum in direct response products and growth in small- and medium-sized businesses. However, this growth did not translate into meeting revenue expectations.

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