Camera company and Snapchat parent company Snap Inc SNAP is falling after-hours Thursday after reporting second-quarter financial results. Here are the key highlights.
What Happened: Snap reported second-quarter revenue of $1.11 billion, up 13% year-over-year. The total came in shy of a Street estimate of $1.14 billion according to Benzinga Pro.
The company reported a loss of two cents per share in the second quarter, missing a Street estimate of a loss of one cent per share.
Snap reported daily active users of 347 million in the second quarter, up 18% year-over-year. Snap said DAUs were up sequentially and year-over-year in North America, Europe and elsewhere.
“While the continued growth of our community increases the long-term opportunity, for our business, our financial results for Q2 do not reflect our ambition,” Snap CEO Evan Spiegel said.
The company highlighted its continued focus on its augmented reality platform and growth among key partners and advertisers in the second quarter.
Snap saw total time spent watching Spotlight go up 59% year-over-year.
A Snap Original feature called “The Fight Inside” was watched by more than 10 million Snapchatters, the company reported. New Snap Originals include content from gymnast Simone Biles and influencers Dixie and Charli D’Amelio.
Related Link: How To Trade SNAP Stock Before And After Q2 Earnings
What’s Next: The company announced it would not provide third-quarter guidance.
“Given uncertainties related to the operating environment, we are not providing our expectations for revenue or adjusted EBITDA for the third quarter of 2022,” the company said.
The company also announced a $500 million stock repurchase program had been authorized by the board of directors. The plan calls for buying shares on the open market or through privately negotiated transactions.
“The goal of the program is to utilize the company’s strong balance sheet to offset a portion of the dilution related to the issuance of restricted stock units to employees,” the company said.
Snap ended the second quarter with $4.9 billion in cash and cash equivalents.
“We are evolving our business and strategy to reaccelerate revenue growth, including innovating on our products, investing heavily in our direct response advertising business, and cultivating new sources of revenue to help diversify our topline growth,” Spiegel said.
SNAP Price Action: At publication, shares of SNAP are down 25.08% to $12.25 in after-hours trading Thursday.
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