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Snap stock rose more than 13% on Thursday after the company reported its second quarter results, beating expectations across the board for profit, revenue and user growth.
Here’s what Snap reported against Wall Street estimates:
- Adjusted earnings per share: 10 cents against 1 cent loss forecast by Refinitiv
- Income: $ 982 million vs. $ 846 million predicted by Refinitiv
- Global Daily Active Users (DAU): 293 million against 290.3 million by StreetAccount
- Average revenue per user (ARPU): $ 3.35 versus $ 2.92 per StreetAccountt
Snap said the company was unaffected by Apple’s iOS 14.5 privacy changes, as it had expected. This was due to the later-than-expected rollout of the mobile operating system update, with iOS users being slow to update their devices and Snap seeing “higher enrollment rates than we typically see in the entire industry, which we believe is due in part to the trust our community has in our products and our business, ”said Jeremi Gorman, Commercial Director of Snap, in his prepared remarks.
“This has given us more time with advertisers to navigate the transition, but it also means that the effects of these changes will occur later than expected,” said Gorman.
Snap’s net loss fell 53% to $ 152 million, from a loss of $ 326 million a year ago.
Snap reported 293 million daily active users, up almost 5% from the 280 million the company reported in April. That figure is up more than 23% from the 238 million daily users reported by the company a year earlier.
Snap expects year-over-year revenue growth of 58% to 60% for the third quarter, the company said. This is down from the 116% annualized growth in revenue recorded in the second quarter. Snap expects to hit around DAU 301 million in the third quarter, the company said in its prepared remarks.
“This range reflects our current best estimate of the potential impact of anticipated disruptions associated with changes to the iOS platform,” said Derek Andersen, Chief Financial Officer of Snap, in his prepared remarks.
The company said the resurgence of Covid-19 cases presents an uncertain operating environment heading into the third quarter.
This is last minute news. Please check for updates.
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