- Snap forecasts an adjusted EBITDA of $70 million to $100 million for Q3 2024, below the $110.5 million estimate.
- Q3 2024 revenue is expected to be between $1.34 billion and $1.38 billion, with the average estimate at $1.36 billion, reflecting a 12% to 16% increase.
- Daily active users are projected to be around 441 million, above the 439.05 million estimate.
- Annual adjusted operating expenses remain forecasted at $2.43 billion to $2.53 billion.
- Q2 2024 revenue was $1.24 billion, up 16% year-over-year, slightly below the $1.25 billion estimate.
- North America revenue for Q2 2024 was $767.6 million, up 12% year-over-year, but below the $777.5 million estimate.
- Europe revenue for Q2 2024 was $229.8 million, up 26% year-over-year, exceeding the $210.2 million estimate.
- Rest of the world revenue for Q2 2024 was $239.4 million, up 20% year-over-year, below the $256.6 million estimate.
- Adjusted EPS for Q2 2024 was 2.0 cents, compared to a loss per share of 2.0 cents the previous year, beating the 1.9 cents estimate.
- Adjusted EBITDA for Q2 2024 was $55.0 million, compared to a loss of $38.5 million the previous year, exceeding the $41.1 million estimate.
- Daily active users for Q2 2024 were 432 million, up 8.8% year-over-year, above the 431.17 million estimate.
- North America daily active users were 100 million, down 1% year-over-year, just below the 100.96 million estimate.
- Europe daily active users were 97 million, up 3.2% year-over-year, close to the 97.22 million estimate.
- Rest of the world daily active users were 235 million, up 16% year-over-year, exceeding the 233.47 million estimate.
- Average revenue per user was $2.86, up 6.3% year-over-year, slightly below the $2.90 estimate.
- North America average revenue per user was $7.67, up 12% year-over-year, slightly below the $7.79 estimate.
- Europe average revenue per user was $2.36, up 22% year-over-year, above the $2.17 estimate.
- Rest of the world average revenue per user was $1.02, up 4.1% year-over-year, below the $1.11 estimate.
- Negative free cash flow for Q2 2024 was $73.4 million, a 38% decline year-over-year, missing the negative $27.5 million estimate.
- Snap employed 4,719 people, down 11% year-over-year, below the estimate of 5,075 employees.
- Snap has reached over 850 million monthly active users.
Snap on Smartkarma
Analysts at Baptista Research have been providing insightful coverage on Snap and Snap-on Incorporated on Smartkarma, shedding light on key market drivers impacting these companies. In the report “Snap-on Incorporated: How They Are Grappling With Production Capacity and Product Availability! – Major Drivers,” Baptista Research discusses Snap-on’s mixed results for the second quarter of 2024, noting a slight decline in gross sales but a rise in operating income margin.
Furthermore, in their report “Snap Inc.: Will Its Investment in Artificial Intelligence and Infrastructure Pay Off? – Major Drivers,” Baptista Research highlights Snap Inc.’s strong financial performance in the first quarter of 2024, with a focus on revenue growth, community engagement, and augmented reality. The strategic priorities of Snap Inc. seem to be yielding positive results, with significant revenue growth and improvements in advertising solutions demand.
A look at Snap Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Investors looking at Snap Inc. can take note of its Smart Scores which provide insights into different aspects of the company. With a Growth score of 3 and a Momentum score of 4, Snap appears to be positioned for potential growth and upward movement. These scores indicate positive signs for the company’s future performance in terms of expansion and market activity.
However, it’s important to consider that Snap’s Value score is at 2, suggesting that the company may be slightly overvalued. With a Dividend score of 1, investors should not expect income from dividends. Despite these factors, the Resilience score of 3 indicates that Snap has a decent level of stability during uncertain times. Overall, Snap Inc., as a technology and social media services provider, continues to serve customers worldwide through its innovative mobile camera application products and services.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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