Snap Daily Active Users Jump 14% To 397 Million In Q2; Losses Narrow, But Weak Forecast Tanks Stock

deadline.com:

Snap’s daily active users jumped 14% year-on-year for the second quarter, the platform said today, to 397 million even as revenue dipped in a tough ad market and with little visibility ahead. “We are excited by the progress we have made delivering increased return on investment for our advertising partners, growing our community to 397 million daily active users, and reaching more than 4 million Snapchat+ subscribers,” said CEO Evan Spiegel.

DAUs also increased sequentially in all regions. Snapchat+, a subscription service that offers exclusive, experimental, and pre-release features, passsed 4 million paying subscribers in Q2, a year after launch.

Net losses of $377 million were narrowed, from $422 million on revenue of $1.07 million, down 4% from the prior year. “From a revenue perspective, our business remains in a period of rapid transition as we work to improve our advertising platform, while forward visibility of advertising demand remains limited,” the company said, guiding the Street $1.07-$1.13 billion in revenue for the current third quarter, adjusted EBITDA of between negative $50 million and negative $100 million.

Investors didn’t love the the numbers and pummeled the stock, which down nearly 16% in after-hours trade. Executives will host a call at 5:30 to discuss the numbers and outlook.