Jul 21, 2020 - Economy

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

Kia Kokalitcheva

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

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