Media

Snap Gets the Picture in Q2 But Investors Not Happy

Snap Inc. (NYSE: SNAP) released second-quarter financial results after markets closed Tuesday. The company reported a net loss of $0.09 per share and $454 million in revenue, compared with consensus estimates that called for a net loss of $0.09 per share and $438.09 million in revenue. The same period from last year had a net loss of $0.06 per share and $359.56 million in revenue.

During the quarter, daily active users (DAU) increased to 238 million compared to 203 million in the second quarter last year. DAUs increased sequentially and year over year in North America, Europe, and the Rest of the World segments.

Another stat the company mentioned in the report was that on average Snapchatters opened the app over 30 times every day in the second quarter. Investors might be happy with this as management said that they have strengthened the ad platform to drive improved outcomes.

A couple more highlights from the report: the daily average number of Snapchatters over the age of 35 engaging with Discover content increased by over 40% year-over-year and the daily average number of Snapchatters watching Shows increased by over 45% in the same period.

At the same time, average revenue per user (ARPU) was flat year over year at $1.91, compared to the second quarter from last year.

Snap has again declined to issue guidance for the third quarter citing the uncertainties of COVID-19. The consensus estimates are calling for a net loss of $0.05 per share and $529.37 million in revenue for the coming quarter.

Shares of Snap closed Tuesday at $24.78, with a 52-week range of $7.89 to $26.76. The stock has a consensus analyst price target of $22.22. Following the announcement, the stock was up about 4.6% at $23.65, in the after-hours trading session.