Snap Reports Strong Q2 Earnings Beat and Raises Sales Forecast
Snap reported better-than-expected earnings and revenue for its second quarter, with global daily active users also exceeding estimates. The company's net loss narrowed significantly year-over-year to $164 million from $262.6 million in the same period last year. Adjusted earnings came in at $250 million versus an estimate of $192 million. Snap raised its third-quarter revenue forecast, projecting sales between $1.7 billion and $1.74 billion—above analyst expectations—and expects adjusted earnings to range from $300 million to $350 million. CEO Evan Spiegel attributed the improved performance in advertising to better ad products and a stronger go-to-market strategy, particularly with large advertisers in North America. The company also increased its full-year infrastructure cost forecast by $50 million due to investments in AI and machine learning. Snap's stock rose 10% in extended trading following the report.
