Snap shares have fallen after the company reported it missed revenue estimates last quarter, with its net losses continuing to mount.
Revenue was US$1.34 billion, up 9% year-over-year but below LSEG estimates of $1.35 billion. Its net loss per diluted share continued to drop from $0.15 to $0.16.
“Our global community continued to grow in Q2, reaching 932 million Monthly Active Users as we continued to invest in AI and augmented reality,” said Snap CEO Evan Spiegel.
“With meaningful inventory and conversions growth this quarter, including the broader rollout of Sponsored Snaps, we’re excited about the opportunity to translate improved advertiser performance into topline acceleration.”
Snap’s revenue was impacted by a since-reverted update to its ad platform, the timing of Ramadan, and the end of the U.S.’ tariff exemptions on packages worth less than US$800, the company said.
Its total net loss last quarter was US$262.57 million, sinking year-over-year from a loss of $248.62 million.
Advertising revenue was up 4% to US$1.17 billion, which the company credited to 5% revenue growth in direct response advertising.
Snapchat reached 932 million global monthly active users last quarter, rising 7%, while daily active users were up 9% to 469 million. This beat StreetAccount estimates of 467 million.
Average revenue per user was US$2.87, down from $2.96 year-over-year and below estimates of $2.90.
Its guidance projects 476 million daily active users next quarter, with revenue at US$1.47-1.50 billion.
The company also said last quarter that it plans to launch Specs augmented reality glasses in 2026.
Snap's (NYSE: SNAP) share price has fallen by 16.5% across 2025 to date.
Its share price closed at US$9.39, but dropped by 14.7% to $8.01 in after-hours trading following the earnings release. Its market capitalisation is $15.80 billion.
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