Why Snap Shares Are Surging
Snap released second quarter financial results after markets closed Tuesday. The company said that it had a net loss of $0.06 per share and $388 million in revenue, compared with consensus estimates that called for a net loss of $0.10…
Snap Inc. (NYSE: SNAP) released second-quarter financial results after markets closed Tuesday. The company said that it had a net loss of $0.06 per share and $388 million in revenue, compared with consensus estimates that called for a net loss of $0.10 per share and $359.56 million in revenue. The same period from last year had a net loss of $0.14 per share and $262.26 million in revenue.
During the quarter, daily active users (DAU) increased to 203 million compared to 190 million in the previous quarter, and 188 million in the second quarter last year.
At the same time, average revenue per user (ARPU) increased by 21% to $1.91, compared to $1.40 in the same period last year.
Looking ahead to the third quarter, the company expects to see revenues in the range of $410 million to $435 million and an adjusted EBITDA loss in the range of $85 million to $60 million. The consensus estimates are calling for a net loss of $0.08 per share and $402.19 million in revenue for the coming quarter.
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Evan Spiegel, Snap CEO and Co-Founder, commented:
The growth in our community, engagement, and revenue is the result of several transitions we completed over the past 18 months.
Shares of Snap closed Tuesday at $14.83, with a 52-week range of $4.82 to $16.24. The stock has a consensus analyst price target of $13.20. Following the announcement, the stock was up about 8% at $16.05, in the after-hours trading session.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
