Snap dives after narrowly missing earnings expectations
Snap posted earnings after the bell Tuesday.
Snap slightly missed expectations, posting a loss per share of $0.16 and $1.34 billion in sales in its second-quarter earnings report. FactSet’s analyst consensus had an estimated loss of $0.15 per share and revenue of $1.35 billion. Average revenue per user came in slightly lower than expectations as well, at $2.87 versus FactSet’s $2.89. Shares plummeted roughly 15% in after-hours trading.
“Our global community continued to grow in Q2, reaching 932 million Monthly Active Users as we continued to invest in AI and augmented reality,” CEO Evan Spiegel said in the earnings release. “With meaningful inventory and conversions growth this quarter, including the broader rollout of Sponsored Snaps, we’re excited about the opportunity to translate improved advertiser performance into topline acceleration.”
Last quarter, the stock took a dive after the company beat earnings expectations but didn’t provide Q2 guidance.
Investors have been watching how tariffs and the end of the de minimis exemption could indirectly affect companies that make their money on advertising. For tech giants like Google and Meta, those haven’t been a big issue.
Bulls had hoped that growth in the company’s subscription business and “direct response” ads, as well as Snap’s upcoming smart glasses, might offset other headwinds.
