Snap Shares Plunge Over 20%, Down Nearly 30% on Weak Guidance After Missing Revenue Estimates

Aug 1, 2024, 08:25 PM

Snap Inc. reported second-quarter sales that fell just short of analyst expectations, resulting in a significant drop in its stock price. The social media company posted revenue of $1.24 billion, slightly below the expected $1.25 billion, and a net loss of $249 million, an improvement from the $377 million loss in the prior year. Adjusted earnings per share were $0.02, matching expectations. Despite a 16% year-over-year revenue increase, Snap's shares plunged over 20% in after-hours trading, down nearly 30% for the day, due to weak guidance and competition pressures. The company's adjusted EBITDA was $55 million, up from a negative $38 million in the previous year. CEO highlighted that the user base grew to 850 million monthly active users, with 11 million Snapchat+ subscribers.