Snap Inc (NASDAQ:SNAP) delivered lackluster Q2 results. Both revenue and earnings missed expectations, and several key metrics raised red flags. Advertising revenue missed the $1.22 billion mark, largely due to an auction-clearing issue earlier in the quarter that led to campaigns being sold at significantly lower prices. Although management stated that growth improved after reverting the changes, investor confidence remains shaky given prior missteps and a persistent lack of transparency.
More concerning was the continued decline in Daily Active Users (DAUs) in North America, down another 2% in Q2. Average Revenue Per User (ARPU) also disappointed—declining sequentially and barely improving year-over-year. On the positive side, Spotlight and Sponsored Snaps showed encouraging momentum, contributing to increased content engagement. Stock-Based Compensation (SBC) also appeared more controlled. Still, the overall performance remains underwhelming—especially when stacked against stronger execution from peers.
For more details, key highlights, and commentary, check out the high-level earnings summary.
