Here’s why SNAP jumped about 15% in after-hours trading on Thursday
- Snap grows users faster than expected in the fiscal second quarter.
- The social media firm forecasts up to $1.085 billion of revenue in Q3.
- MKM's Rohit Kulkarni discusses Snap's earnings on CNBC's "Closing Bell".
Snap Inc (NYSE: SNAP) said on Thursday its revenue jumped over 100% in the fiscal second quarter as the advertising market continued to recover. Shares of the company jumped roughly 15% in extended trading on better-than-expected Q2 results.
Snap reported $151.6 million of net loss in the second quarter that translates to 10 cents per share. In the same quarter last year, its net loss stood at a sharply higher $326 million or 23 cents per share.
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On an adjusted basis, the social media company posted an unexpected 10 cents of per-share earnings versus the year-ago figure of 9 cents of per-share loss. Snap generated $982 million of revenue in the recent quarter – an increase from $454 million last year.
According to FactSet, experts had forecast $846 million of revenue and 1 cent of adjusted per-share loss.
DAUs and future guidance
Snap now boasts 293 million daily active users after adding 13 million in the second quarter. FactSet consensus was for 10 million new DAUs.
Apart from the advertising market, Snap is also relying on a launch of new features to drive revenue. The earnings report comes only days after it said it was buying a 3D and AR solutions provider, Vertebrae.
For fiscal Q3, Snap forecasts up to $1.085 billion of revenue versus the FactSet consensus of $1.014 billion.
Rohit Kulkarni’s remarks on CNBC’s “Closing Bell”
Commenting on Snap’s earnings report, MKM Partners’ Rohit Kulkarni said on CNBC’s “Closing Bell”:
“I think Snap is firing on all cylinders. There are two questions on Snap. One, how many more people can they add given they had a tougher comp. Two, what is the impact of Apple’s IDFA on Snap. They have essentially proven that both of those issues are in the rear window. I think Snap’s results are probably one of the highest quality beats coming into the print. They are innovating at a level that we haven’t seen many other companies do.”