Key facts
- Snap's second-quarter revenue rose 19% to $1.60 billion, surpassing the analyst estimate of $1.54 billion.
- Increased advertising spending during the FIFA World Cup and strong campaign activity from large North American advertisers contributed to the revenue beat.
- Daily active users grew by approximately 5% to 493 million.
- Snap projects third-quarter revenue to be between $1.70 billion and $1.74 billion.
- The company highlighted its AI-powered Smart Campaign Solutions for automated ad management.
Snap exceeded Wall Street's revenue expectations for the second quarter, reporting a 19% increase to $1.60 billion, driven by heightened advertising spending during the FIFA World Cup and robust campaign activity from major advertisers in North America. The social media firm's focus on its AI-powered Smart Campaign Solutions, which automate bidding, budgeting, and audience targeting, is helping it attract advertisers in a competitive landscape.
CEO Evan Spiegel stated that the company saw better momentum with large advertisers in North America after several quarters of refining its ad products and go-to-market strategy. He also noted that World Cup-related spending contributed to the quarter's performance, alongside continued strength from small and medium-sized businesses. Daily active users increased by approximately 5% to 493 million, maintaining the growth pace from the previous two quarters, although North America and Europe saw slight declines in DAUs.
Looking ahead, Snap anticipates third-quarter revenue to range between $1.70 billion and $1.74 billion, with adjusted earnings before interest, taxes, depreciation, and amortization projected between $300 million and $350 million. The company also acknowledged its ongoing monitoring of the evolving legal and regulatory environment, particularly concerning youth-related issues.