Snap soars as Q2 revenue and subscribers beat expectations, delivers surprise profit
Disappearing message pioneer Snap this afternoon reported Q2 revenue that easily topped Wall Street's expectations, and a surprise profit where analysts had expected a loss. Snap also offered an outlook for revenue this quarter that topped expectations.
The report sent Snap shares surging by over 13% in late trading.
CEO and founder Evan Spiegel remarked that the results of the quarter "reflect the broad-based strength of our business, as we grew both revenue and daily active users at the highest rates we have achieved in the past four years."
Added Spiegel, "We are pleased by the progress our team is making with the development of our augmented reality platform, and we are energized by the many opportunities to grow our community and business around the world."
Snap's daily average users rose to 293 million, an increase of 50 million, or 23%, year over year, the company said. That compares to consensus for 290.3 million.
Revenue in the three months ended in June rose to $982.11 million, yielding a net profit of 10 cents a share.
Analysts had been modeling $846 million and a net loss of 18 cents per share.
For the current quarter, the company sees revenue of $1.07 billion to $1.085 billion. That compares to consensus for $1.01 billion.