Snap Inc. reported a significant increase in user numbers for the second quarter of 2024 but missed revenue targets, causing a notable drop in its stock price. The company reached 432 million daily active users, marking a 9% year-over-year increase with an additional 36 million users. Its monthly active users hit a new high of 850 million.
Revenue for the quarter was $1.24 billion, up from $1.07 billion a year ago but falling short of Wall Street’s forecast. Snap attributed the revenue shortfall to a “weaker brand advertising environment for certain consumer discretionary verticals.” As a result, Snap’s shares fell 22% in after-hours trading.
Despite the revenue miss, Snap managed to reduce its net loss to $249 million from $377 million in the previous year. The company’s subscription service, Snapchat+, saw growth, with paid subscribers rising to 11 million from 9 million last quarter.
Snap also renewed key partnerships with the NFL, NBA, and WNBA, which will continue to provide official content on Snap Stories and Spotlight. Additionally, the company introduced Snap Nation, enhancing user access to tour and festival experiences.
On the technology front, Snap has been investing in machine learning to enhance content ranking and personalization. This has led to a 25% year-over-year increase in global time spent watching content, with notable growth in Spotlight and Creator Stories.
Looking ahead to the third quarter, Snap projects reaching 441 million daily active users and anticipates revenue between $1.335 billion and $1.375 billion. CEO Evan Spiegel highlighted the company’s growth and expressed optimism about upcoming developments, including new updates to be announced at the Snap Partner Summit on September 17th.
