Snap Grows User Numbers, But Misses Quarterly Revenue Expectations

Snap hit 432 million daily active users in the second quarter of 2024, an increase of 36 million, or 9 percent year-over-year.

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Revenue hit $1.24 billion, up from $1.07 billion a year ago, but below Wall Street expectations. Advertising sales were impact by a “weaker brand advertising environment for certain consumer discretionary verticals,” the company said. Shares of Snap were plummeting 22 percent after hours Thursday.

The social media company pared down its net loss to $249 million from $377 million in the prior year. Snap also hit a new milestone of 850 million monthly active users. Snapchat+, the app’s paid subscription service that offers exclusive features, saw its numbers grow to 11 million paid subscribers from nine million last quarter.

During the quarter, the company also renewed its partnerships with the NFL, NBA and WNBA, which provide official content across Snap Stories and its Spotlight video feed, and announced Snap Nation, which gives Snap users enhanced access to tour and festival experiences.

Snap has also been leaning into machine learning models to improve content ranking and personalization on the app. In turn, the company says content engagement has improved, with global time
spent watching content growing 25% year-over-year and 10% quarter-over-quarter, with strong growth in total time spent watching Spotlight and Creator Stories.

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Going into the third quarter, Snap expects to hit 441 million daily active users and revenue of $1.335 billion to $1.375 billion.

“Our community grew to reach more than 850 million monthly active users in Q2, with more than 11 million Snapchat+ subscribers,” said CEO Evan Spiegel. “We continued to scale our advertising platform with active advertisers more than doubling year-over-year. We are looking forward to hosting our upcoming Snap Partner Summit on September 17th, where we will announce new updates to our service.”

More to come.

Snap Beats Wall Street Expectations as Revenues and Users Rise