Jul 21, 2020 - Economy & Business
Snap shares go on post-close roller coaster after Q2 earnings report
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.