SNAP REPORTS SECOND-QUARTER REVENUE ABOVE ESTIMATES

Snap reported second-quarter revenue of $1.6 billion, exceeding analyst expectations of $1.54 billion according to LSEG Global data. The company recorded a net loss of $164 million, narrower than the $262.6 million loss reported in the same quarter a year earlier. CEO Evan Spiegel stated in an investor letter that the company "saw improving momentum in our advertising business". The stock rose approximately 8% in extended trading following the announcement.

Daily active users reached 493 million globally, surpassing analyst estimates of 487 million according to StreetAccount data. Global average revenue per user stood at $3.25, above the expected $3.16. Second-quarter revenue increased 19% compared with $1.34 billion in the prior-year period. Adjusted earnings came in at $250 million, exceeding the $192 million estimate according to StreetAccount. Spiegel attributed improved performance to better momentum with large advertisers in North America and stronger revenue growth internationally, alongside spending linked to the World Cup.

Snap forecast third-quarter sales between $1.7 billion and $1.74 billion, topping analyst estimates of $1.7 billion. The company projected adjusted earnings of between $300 million and $350 million, with the midpoint of $325 million trailing StreetAccount's projection of $327 million. Snap increased its forecast for infrastructure costs for the year by $50 million to between $1.65 billion and $1.7 billion.