Snap's stock jumps 8% on earnings beat and strong sales forecast
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- Snap reported Q2 revenue of $1.6B vs. $1.54B expected, global daily active users of 493M vs. 487M, and ARPU of $3.25 vs. $3.16, sending shares up about 8% in extended trading.
- Snap's net loss narrowed to $164M from $262.6M a year earlier, while adjusted earnings of $250M beat the $192M StreetAccount estimate.
- Snap guided Q3 revenue to $1.7B–$1.74B, topping analyst estimates of $1.7B; the $300M–$350M adjusted earnings range has a $325M midpoint that trails StreetAccount's $327M projection.
- CEO Evan Spiegel credited "improving momentum" with large North American advertisers and a World Cup spending boost, a reversal from May when Snap called that segment a "headwind."
- North American daily active users fell 7% YoY to 92M even as global DAUs rose 5%, highlighting a persistent engagement gap in Snap's home market.
- Snap raised full-year infrastructure cost guidance by $50M to $1.65B–$1.7B, earmarked for "additional investment in AI and machine learning infrastructure."
- Snapchat+ revenue surged 85% YoY to $316M, and Spiegel unveiled Specs AR glasses priced at $2,195, but told investors mass-market adoption won't come until "towards the end of the decade."
Why it matters: Snap's ad business is finally healing after quarters of large-advertiser weakness, with improved ad products and World Cup spending driving the Q2 beat. A 7% YoY decline in North American DAU to 92M shows engagement remains a persistent problem underneath the revenue story. Snap's $50M AI infrastructure bump is modest enough to sidestep the punishing capex reaction that hit Meta shares last week.
