.August 2, 2024 12:25 PM

Snap Inc. (NYSE:SNAP) reported mixed Q2 results, with shares dropping 24% after disappointing guidance. The company beat earnings expectations with $0.02 per share but fell short on revenue at $1.24 billion, a 16% increase year-over-year.

Snap’s Q3 guidance missed market expectations, with revenue projected at $1.335 billion to $1.375 billion, indicating a 12% to 16% growth. Adjusted EBITDA for Q3 is expected to be between $70 million and $100 million.

Despite financial challenges, Snap saw a 9% increase in DAUs to 432 million in Q2, with monthly active users surpassing 850 million. CEO Evan Spiegel highlighted growth, with over 11 million users subscribing to Snapchat+.

The company reported a doubling of active advertisers in Q2, driven by direct response products and growth among small- and medium-sized businesses. However, the increase in advertisers did not meet revenue expectations, contributing to the disappointing financial outlook.