Snap Reports Q2 Revenue Below Expectations

Snap Inc. reported second-quarter earnings of $0.02 per share, matching expectations, but missed revenue projections with $1.24 billion against the anticipated $1.25 billion. Despite a 16% year-over-year revenue increase, the company's forecast for third-quarter revenue between $1.335 billion and $1.375 billion fell short of analyst expectations, leading to an 18% drop in share value. Snap's disappointing revenue guidance has been attributed to stiff competition from larger rivals like Meta Platforms and TikTok, and weak demand in certain advertising sectors. The company’s user base grew to 850 million monthly active users, including 11 million Snapchat+ subscribers. Snap continues to face challenges in the advertising market, impacted by high interest rates and a weaker brand advertising environment. Future performance will depend on strategic investments and market conditions.