Snapchat’s Q2 Earnings Report 2019 – The Buyer’s Journey 81

As marketers we use a lot of platforms for our marketing efforts. This is the first in a series of episodes focusing on the Q2 earnings reports of each of a few of those platforms. Today, we’re looking at Snapchat’s Q2 earnings report and we’ve got a breakdown of everything you need to know.

Q2 Earnings Report Quick Numbers

Here are a couple quick-hit numbers on one of the largest social media platforms via Salvador Rodriquez on CNBC:

  • Loss per share: 6 cents vs. 10 cents forecast by Refinitiv
  • Revenue: $388 million vs. $359.7 million forecast by Refinitiv
  • Global daily active users (DAUs): 203 million vs. 192.4 million forecast by FactSet
  • ARPU: $1.91 vs. 1.84 forecast by Refinitiv

An In-Depth Look

Snapchat’s user base has grown to 203 million daily active users, a stark contrast to the user shrinkage that occurred during Q1 2018. Q2 marks the second straight quarter of growth for Snap, a point of pride for the company we’re sure.

“The growth in our community, engagement, and revenue is the result of several transitions we completed over the past 18 months,” Snap CEO Evan Spiegel said in a statement. “We look forward to building on our momentum and making significant ongoing progress in each of these areas.”

But the user base isn’t the only thing growing. So is revenue. Snap reported $388 million in Q2 revenue, an increase of 48% from the year prior. The gross margin, too, increase 16%; 46% from 30% in Q2 2018. 

“We continue to make significant progress in driving down our underlying unit costs over time, including the cost to deliver a Snap, the cost to deliver an impression, and other key drivers of infrastructure costs,” said Snap Chief Financial Officer Derek Andersen in his prepared remarks.

Snap has high expectations for the future. They’re expecting a Q3 revenue of $410 million to $435 million, which exceeds analysts expectations. Snap is also hoping for a daily user base between 205 and 207 million in the third quarter. That’s quite a jump from the 195.5 million analysts are expecting. 

A Lens Into The Future

Snapchat’s Lenses and new Android app seem to be the reason for the increases in Q2. “The popularity of these Lenses drew millions of people into our rebuilt Android application, where they experienced the new and improved Snapchat that led to increased engagement,” said Spiegel in his prepared remarks. “The enhancements we have made to our advertising business and self-serve platform meant that we were better able to monetize this increased engagement, leading to accelerating revenue growth.”

Check out our next episode where we’ll discuss Twitters’s Q2 earnings report.

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