Snap reported a revenue of $1.6 billion for the second quarter, surpassing analysts' expectations of $1.54 billion, and a narrower net loss of $164 million compared to $262.6 million a year ago. The company's adjusted earnings of $250 million also exceeded the $192 million estimate.
Daily active users reached 493 million, above the expected 487 million, and the average revenue per user was $3.25, exceeding the $3.16 forecast. Looking ahead, Snap anticipates third-quarter sales between $1.7 billion and $1.74 billion, slightly above analyst estimates, although its adjusted earnings forecast of $325 million is slightly below expectations.
CEO Evan Spiegel highlighted improved momentum in advertising, particularly from large North American advertisers and international markets, aided by World Cup-related spending. However, North American daily active users declined 7% year-over-year. Snap also increased its full-year infrastructure costs to support AI and machine learning investments.
The company is also launching augmented reality glasses priced at $2,195, expected to ship later this year. This positive performance contrasts with recent struggles faced by other online ad companies, indicating a potential shift in Snap's market position