Jul 21, 2020 - Economy

Snap shares go on post-close roller coaster after Q2 earnings report

An illustration of the Snapchat ghost mascot next to a stock chart going up in green

Illustration: Axios Visuals

Snap's stock price is slowly rebounding after a sharp after-hours drop as the company met or beat Wall Street expectations for its second quarter but declined to offer Q3 guidance given ongoing coronavirus-driven uncertainty.

Why it matters: Snap is among the companies that has been able to capitalize on the pandemic which has forced people to stay home much of the time, leaving them with a lot more free time to consume media and entertainment.

Yes, but: The company said it wasn't giving top- or bottom-line guidance for the third quarter given "uncertainties related to the ongoing COVID-19 pandemic and the rapidly shifting macro conditions."

  • Losses in the second quarter, although in line with analyst estimates, also widened year on year.
  • Ands the company's daily active user growth slightly lagged behind estimates, likely due to the growing popularity of TikTok.

By the numbers:

  • Loss per share: $0.09, compared to $0.09 expected.
  • Revenue: $454.16 million, compared to $438.09 million expected.
  • Daily active users: 238 million, up 35 million or 17% year-over-year.
  • Average revenue per user: $1.91, unchanged year-over-year.
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