Snap’s net loss jumps 28% in the fiscal second quarter
- Snap Inc. says its net quarterly loss broadened by 28% in the fiscal second quarter.
- The U.S. social media company records 238 million global daily active users in Q2.
- CFO Derek Andersen reveals a 32% increase in Snap's revenue in Q3 to date.
Snap (NYSE: SNAP) published its quarterly financial results on Tuesday that highlighted its net loss to have broadened in the second quarter. Its performance in the first quarter was also reported stronger than expected in April.
Shares of the company were reported about 6% down in extended trading on Tuesday. At £18.22 per share, Snap is currently 40% up year to date in the stock market after recovering from a low of £6.57 per share in March. Learn more about stock market volatility.
Snap’s Q2 financial results versus analysts’ estimates
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
According to Refinitiv, analysts had anticipated the company to print £344.85 million in the second quarter. Their estimate for loss per share was capped at 7.07 pence. In its report on Tuesday, Snap topped the estimate for revenue posting £356.55 million in Q2 and matched the forecast for loss per share at 7.07 pence. Snap recently announced to have launched an investigation after reports of discrimination.
As per FactSet, experts had forecast Snap to record its global DAUs (daily active users) at 238.48 million that was almost met on Tuesday as the company announced 238 million global DAUs in the second quarter. Its average revenue per user (ARPU) also came in stronger than the FactSet consensus at £1.51 versus £1.47 expected. On a year over year basis, Snap’s daily active users increased by 17% in Q2.
At £256.03 million, the American social media company said that its net loss jumped about 28% in Q2 versus £200.27 million in the same quarter last year. The Santa Monica-based company attributed its quarterly loss to long-term investments and interest costs ascribed to convertible notes.
Snap’s revenue is 32% up in Q3 to date
In the third quarter to date, Snap said that its revenue was roughly 32% up on an annualised basis. In the rest of Q3, however, it estimates the growth in revenue to moderate and end up at about 20% for the complete quarter.
CFO Derek Andersen of Snap commented on the earnings report on Tuesday and said:
“Advertising demand in Q3 has historically been bolstered by factors that appear unlikely to materialise in the same way they have in prior years, including the back to school season, film release schedules, and the operations of various sports leagues. At this point in time it is difficult to predict how these factors may impact advertising demand in the remainder of Q3.”
At the time of writing, the American social media company has a market capitalisation of £28.32 billion.