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.

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

• Snapchat+ subscriptions reached 11 million, with AR and AI features driving engagement and advertiser interest.

• 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.

• Operating cash flow: $(21) million, improved from $(82) million in Q2 2023; Free Cash Flow: $(73) million, improved from $(119) million.

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

• Diluted net loss per share: $(0.15), improved from $(0.23) prior year.

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 assumed for brand advertising.

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