Snapchat (SNAP) Q2 2023 earnings results miss EPS whisper number & revenue estimates

Snapchat (SNAP), the company behind the social media platform known for its ephemeral posts and camera technology, is among those sharing its latest round of earnings this week. It’s a bit of a mixed bag this time around. While the company missed on revenue and reported a loss on EPS, it wasn’t as bad as some analysts were expecting.

Snapchat’s Q2 2023 earnings results were shared in an official press release on its website today. In the report, Snapchat revealed a $1.07 billion quarter, which comes in just under the expectation of $1.1 billion. The company also posted a $0.02 loss-per-share against an expected loss of $0.04. “We are excited by the progress we have made delivering increased return on investment for our advertising partners, growing our community to 397 million daily active users, and reaching more than 4 million Snapchat+ subscribers,” said Evan Spiegel, CEO.

Source: CNN

Snapchat also provided guidance for the upcoming third quarter.

As we enter Q3, we anticipate continued robust growth in our global community and, as a result, our financial guidance for Q3 is built on the assumption that DAU will reach 405 million to 406 million in Q3. From a revenue perspective, our business remains in a period of rapid transition as we work to improve our advertising platform, while forward visibility of advertising demand remains limited. Our guidance range for Q3 revenue reflects our best estimate of these factors, with total revenue estimated to be between $1,070 to $1,130 million implying negative 5% to flat year-over-year growth. At this level of revenue, we estimate that Adjusted EBITDA will be between negative $50 million and negative $100 million reflecting estimated infrastructure costs per DAU of $0.79 to $0.84 in Q3, as we continue to invest in ML, AI, and other infrastructure to improve the performance of our ad platform, drive deeper content engagement, and bring innovative product experiences to our community. This forecast also assumes modest sequential headcount growth as we continue to carefully calibrate our operating investments to focus on the inputs most essential to the acceleration of topline growth.

Today also brought financial news for Microsoft and Google by way of their own earnings reports. Shacknews will continue to share the biggest financial stories in technology.