What happened: Snap (SNAP) stock surged 6% in premarket trading on Tuesday.
What’s behind the move: The social media company’s second quarter revenue was higher than expected, and its loss per share was smaller than expected
Quarterly revenue increased 18% year over year to $1.6 billion, versus expectations of $1.53 billion. “After several quarters of improving our ad products and go-to-market approach, we saw better momentum with large advertisers in North America and stronger revenue growth internationally,” CEO Evan Spiegel said during the earnings call. “World Cup-related spending contributed during the quarter, alongside continued strength among small and medium-sized businesses.” What else you need to know: Management highlighted that Snapchat is approaching 1 billion monthly users. The number of people posting to Spotlight, an algorithmic video feed within Snapchat, grew more than 115% year over year, while Spotlight daily active users grew more than 20%. In Q2, Snap reported a loss per share of $0.10.
Going into the print, Wall Street expected the social media platform to report a loss per share of $0.12, according to S&P Global Market Intelligence. Snap shares are down more than 38% year to date. The company has faced intense competition in the social media and advertising space from Meta’s Facebook (META) and TikTok, as well as rising infrastructure costs.