Snap Inc. Reaches 932 Million Monthly Active Users, Reports Q2 2023 Earnings
Snapchat’s parent company Snap Inc. continues to show strong user growth, reaching over 932 million monthly active users and approximately 469 million daily active users in its latest report. This marks significant year-over-year growth for the popular social media platform.
Q2 2023 Financial Performance Highlights
The company reported Q2 revenue of $1.34 billion, representing a 9% increase from the previous year. However, Snap also recorded a net loss of $263 million, slightly higher than the $249 million loss in the same quarter last year. The loss per share stood at 16 cents, compared to 15 cents in the previous year.
Advertising Revenue Performance
- Total advertising revenue: $1.17 billion (4% year-over-year growth)
- Direct response advertising: 5% year-over-year increase
- Brand marketing revenue: Remained flat
- Snapchat+ subscription revenue grew 62% to $171 million
Challenges in Advertising Platform
Snap encountered some challenges during Q2, particularly with its advertising platform. The company acknowledged a technical issue that resulted in some advertisers receiving lower-than-intended ad pricing. This issue has since been resolved, with advertising revenue growth showing improvement as marketers adjust their bidding strategies.
Strategic Initiatives and Future Growth
CEO Evan Spiegel highlighted several key initiatives during the earnings call, including:
- AI-powered advertising budget optimization
- Enhanced bidding options for marketers
- Sponsored Snaps and inbox ads for extended campaign reach
Q3 Outlook and Recovery
CFO Derek Andersen reported that ad revenue growth has stabilized, showing a 3-4% growth rate through June and into July. The company continues to focus on building advertising demand while addressing technical challenges and market conditions.
Despite the positive user growth and revenue increases, Snap’s stock experienced a 14.4% decline in after-hours trading, reflecting investor concerns about specific ad platform growth prospects in an increasingly competitive digital advertising landscape.