Snap Q2 Revenue Declines 4% as Ad Woes Persist, Stock Plummets on Weak Outlook

variety.com:

Todd Spangler NY Digital Editor Snap, still wrestling with softer ad sales amid stiff competition in the digital advertising sector, saw its top line drop 4% in the second quarter of 2023 — and while it managed to beat Wall Street earnings estimates, the Snapchat owner’s stock fell on a weaker-than-expected Q3 outlook.

For Q2, the company reported revenue of $1.07 billion and a net loss of $377 million million, or an adjusted loss of 2 cents per share.

It was the second quarter in a row of revenue decline, after Snap sales were off 7% in Q1. For the most recent quarter, Wall Street was expecting the social media and messaging app company to post revenue of $946.7 million and an adjusted net loss of 4 cents per share.

At the same time, Snapchat’s user base continues to grow: In Q2, the app added 14 million daily active users on average in the quarter to hit 397 million (up from 383 million DAUs in Q1 and an increase of 14% year over year).