Snap Surprises Wall Street With Strong User Growth And Revenue
Snap exceeds analyst expectations for second-quarter revenue, user growth, and average revenue per user. The social media company also provides optimistic guidance for the third quarter.
Snap shares surge more than 12% in after-hours trading as the Snapchat maker reports second-quarter results that easily surpass analysts' estimates. The company posts a slimmer-than-expected loss of 6 cents per share and generates $388 million in revenue, which represents a 48% increase compared to a year prior.
The tech firm experiences a major turnaround in its user base, reaching 203 million daily active users and marking the second consecutive quarter of growth after a difficult 2018. Additionally, Snap significantly improves its gross margin to 46% by successfully driving down underlying infrastructure and delivery costs.
Looking ahead, Snap provides strong guidance for the third quarter by forecasting revenue between $410 million and $435 million alongside an expected daily active user count of 205 to 207 million. These optimistic projections exceed Wall Street expectations and reinforce the company's ongoing momentum under CEO Evan Spiegel.