Snap (SNAP) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 16% year-over-year to $1.24 billion, with daily active users up 9% to 432 million and monthly active users surpassing 850 million.

• Net loss improved to $249 million from $377 million a year ago; Adjusted EBITDA reached $55 million, up from -$38 million, reflecting improved operating leverage and cost discipline.

• Active advertisers more than doubled year-over-year, driven by SMB growth, direct response products, and automation tools.

• Snapchat+ subscriptions reached 11 million, with new AR and AI features and partnerships deepening engagement.

• Strategic reprioritization and restructuring actions were largely completed in Q2 2024.

Financial highlights

• Revenue: $1.24 billion in Q2 2024, up 16% year-over-year; ARPU: $2.86, up 6% year-over-year.

• Net loss: $249 million, improved from $377 million in Q2 2023; Adjusted EBITDA: $55 million, up from $(38) million.

• Free Cash Flow: $(73) million in Q2, improved from $(119) million year-over-year; trailing twelve-month Free Cash Flow: $15 million.

• Adjusted gross margin stable at 52-53%; adjusted operating expenses down 3% year-over-year.

• Non-GAAP diluted net income per share: $0.02, up from $(0.02) in Q2 2023.

Outlook and guidance

• Q3 2024 revenue guidance: $1.335 billion–$1.375 billion, implying 12%-16% year-over-year growth.

• Q3 DAU expected to reach approximately 441 million.

• Q3 Adjusted EBITDA expected between $70 million and $100 million.

• Continued focus on DR and Snapchat+ as primary growth drivers; no major rebound in brand advertising assumed.

• Management expects continued macroeconomic headwinds and increased competition for advertising dollars.