Snap’s stock rose more than 16% on Thursday after the company announced its second quarter results, beating expectations for earnings, revenue and user growth.
Here’s what Snap reports compared to Wall Street estimates:
- Adjusted earnings per share: 10 cents vs. 1 cent loss forecast from refinitive
- Revenue: $ 982 million versus Refinitiv’s forecast of $ 846 million
- Global Daily Active Users (DAUs): 293 million versus 290.3 million per StreetAccount
- Average revenue per user (ARPU): 3.35 USD vs. 2.92 USD per StreetAccountt per
Snap said the company was unaffected by Apple’s iOS 14.5 privacy changes, as it had expected. This was due to the fact that the mobile operating system update was rolled out later than expected, iOS users were slow to update their devices, and Snap “observed higher opt-in rates than we commonly reported across the industry, which we believe to be That’s partly because of the trust our community has in our products and our business, “said Jeremi Gorman, Snap’s chief business officer, in her prepared remarks.
“This has given us more time with advertisers to manage the transition, but it also means the impact of those changes will come later than we originally expected,” said Gorman.
Snap’s net loss decreased 53% to $ 152 million, from a loss of $ 326 million the previous year.
Snap reported 293 million daily active users, nearly 5% more than the 280 million the company reported in April. That number is up more than 23% compared to the 238 million daily users the company reported a year earlier.
Snap expects third-quarter revenue growth of 58 to 60% year over year, the company said. That’s less than 116% annualized revenue growth in the second quarter. Snap expects to hit around 301 million DAUs in the third quarter, the company said in its prepared remarks.
“This range reflects our best current estimate of the potential impact of anticipated disruptions related to the changes to the iOS platform,” said Derek Andersen, Snap’s chief financial officer, in his prepared remarks.
The company said the resurgence of Covid-19 cases presented an unsafe operating environment as we head into the third quarter.