{"id":48527,"date":"2024-08-07T03:25:28","date_gmt":"2024-08-07T07:25:28","guid":{"rendered":"https:\/\/usa.businessupturn.com\/?p=48527"},"modified":"2024-08-07T03:25:28","modified_gmt":"2024-08-07T07:25:28","slug":"snap-shares-drop-over-20-after-disappointing-third-quarter-guidance","status":"publish","type":"post","link":"https:\/\/www.businessupturn.com\/usa\/snap-shares-drop-over-20-after-disappointing-third-quarter-guidance\/48527\/","title":{"rendered":"Snap Shares Drop Over 20% After Disappointing Third-Quarter Guidance"},"content":{"rendered":"<p>Snap shares plunged more than 20% in extended trading on Thursday after the social media company provided a weaker-than-expected forecast for the third quarter. The announcement came despite meeting earnings and user growth expectations.<\/p>\n<p>Key Financial Results:<\/p>\n<ul>\n<li>Earnings per share: $0.02 adjusted, matching the expected $0.02 per share (LSEG).<\/li>\n<li>Revenue: $1.24 billion, slightly below the $1.25 billion expected (LSEG).<\/li>\n<li>Global daily active users (DAUs): 432 million, above the expected 431.1 million (StreetAccount).<\/li>\n<li>Global average revenue per user (ARPU): $2.86, below the expected $2.91 (StreetAccount).<\/li>\n<\/ul>\n<p>For the third quarter, Snap forecasted revenue between $1.335 billion and $1.375 billion, with a midpoint of $1.355 billion. This falls short of analysts\u2019 expectations of $1.36 billion. The company also projected adjusted earnings between $70 million and $100 million, lower than the average analyst estimate of $110 million (StreetAccount).<\/p>\n<p>In a letter to investors, Snap attributed the financial outlook to \u201cincremental investments in infrastructure, personnel, and marketing,\u201d as well as the ongoing impact of increasing legal and regulatory burdens on its cost structure.<\/p>\n<p>Second Quarter Highlights:<\/p>\n<ul>\n<li>Revenue increased 16% year-over-year, reaching $1.24 billion from $1.07 billion in the same period last year.<\/li>\n<li>Monthly active users grew to 850 million, up from 800 million in February.<\/li>\n<li>Snapchat+ subscribers rose to over 11 million.<\/li>\n<\/ul>\n<p>CEO Evan Spiegel highlighted the company\u2019s growth in a statement, noting, \u201cOur community grew to reach more than 850 million monthly active users in Q2, with more than 11 million Snapchat+ subscribers.\u201d Snapchat+, a subscription service launched in 2022, contributed to the company\u2019s expansion beyond online advertising, achieving an annualized revenue run rate of $249 million in 2023.<\/p>\n<p>The broader digital advertising market has shown mixed results recently. Meta reported a 22% increase in revenue, predominantly from online advertising, reaching $39.07 billion in the second quarter. Meanwhile, Pinterest saw its shares fall after offering weaker-than-expected guidance, particularly citing challenges in the food and beverage advertising segment. Alphabet\u2019s Google ad business grew 11% to $64.6 billion, with YouTube advertising sales falling short of expectations at $8.66 billion.<\/p>\n<p>Snap\u2019s underperformance, combined with a cautious outlook, underscores the challenges the company faces in a competitive and fluctuating digital advertising landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Company Misses Revenue Expectations and Lowers Future Forecast<\/p>\n","protected":false},"author":331,"featured_media":48470,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[3928,15049,15050],"class_list":["post-48527","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech","tag-shares","tag-snap","tag-snapchat"],"reading_time":"2 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/48527","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/users\/331"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/comments?post=48527"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/48527\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media\/48470"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media?parent=48527"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/categories?post=48527"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/tags?post=48527"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}