Snap Inc. (NYSE:SNAP) reported mixed second-quarter results and issued disappointing guidance, causing its shares to plummet by 24% intra-day today. The social media giant posted adjusted earnings per share of $0.02 for the quarter, beating analysts' expectations of a loss of $0.16 per share. However, its revenue fell slightly short, coming in at $1.24 billion compared to the anticipated $1.25 billion, marking a 16% year-over-year increase.
The company's guidance for the third quarter also fell short of market expectations, with projected revenue ranging from $1.335 billion to $1.375 billion, suggesting a 12% to 16% year-over-year growth. Additionally, Snap forecasted adjusted EBITDA between $70 million and $100 million for Q3.
Despite the financial setbacks, Snap saw a 9% year-over-year increase in daily active users (DAUs), reaching 432 million in Q2. The platform's monthly active users surpassed 850 million. CEO Evan Spiegel emphasized the platform's growth, noting that more than 11 million users subscribed to Snapchat+.
The company also reported that its total number of active advertisers more than doubled year-over-year in Q2, driven by strong momentum in direct response products and growth among small- and medium-sized businesses. However, this increase in advertisers did not translate into meeting revenue expectations, contributing to the overall disappointing financial outlook.