Snap -10% as Q2 user growth lags hopes

Jul. 21, 2020 4:17 PM ETSnap Inc. (SNAP)By: Jason Aycock, SA News Editor60 Comments
  • Snap (NYSE:SNAP) has slipped 10% after a Q2 report where revenue topped expectations but user metrics disappointed.
  • Revenues rose 17% overall to $454M, clearing expectations for $444.5M.
  • Daily active users also rose 17%, to 238M, but that was slightly worse than expectations.
  • DAUs were up both sequentially and year-over-year in North America, Europe, and Rest of world, and those gains were also spread over iOS and Android platforms.
  • The company pointed to increased engagement, with Snapchatters on average opening Snapchat more than 30 days a day this quarter. Meanwhile, the average number of Snapchatters watching Shows rose by 45% Y/Y, and those over age 35 engaging with Discover content was up 40%.
  • Net loss widened to $326M from a year-ago loss of $255M, and EBITDA worsened to -$96M from -$79M.
  • But operating cash flow improved by $29M to -$67M, and free cash flow improved by $21M to -$82M.
  • It's not offering Q3 guidance amid "rapidly shifting macro conditions" and the global pandemic.
  • Conference call to come at 5 p.m. ET.
  • Press release

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