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Snap Q2 revenue grows 8.7% to $1.34 billion amid ad platform glitch; user base, subscriptions continue to climb
Snap’s Q2 revenue rose 8.7% to $1.34 billion, slowed by an ad glitch and competition. Despite a $263 million loss, DAUs hit 469 million and Snapchat+ subscribers jumped 42% to 16 million.
Snap expects Q3 revenue between $1.48 billion and $1.51 billion, in line with Wall Street projections. (Image source: Unsplash)
Snap Inc. (SNAP.N) reported its slowest quarterly growth in over a year on Tuesday, as an unexpected glitch in its ad platform and intensifying competition from digital advertising giants took a toll on performance.
As per a report by Reuters, the company confirmed that the issue, a misconfiguration that led to some ads being delivered at significantly lower prices, was promptly fixed. However, in an environment where advertisers are tightening budgets and favoring platforms with broader reach like Meta and TikTok, even minor missteps are proving costly.
Despite the hiccup, Snap continues to show traction in other areas. The company reported second-quarter revenue of $1.34 billion, up 8.7% year-over-year, largely meeting analyst expectations but falling short of the double-digit growth streak it had maintained for the last five quarters. Net loss widened slightly to $263 million, from $249 million a year ago.
Interestingly, small and mid-sized businesses (SMBs) emerged as key drivers of ad revenue, even as larger brands stayed cautious. Meanwhile, Snap’s push to diversify beyond advertising is paying off, Snapchat+ subscriptions surged 42% to nearly 16 million in Q2.
User growth remains strong, with daily active users rising 9% to 469 million, slightly beating expectations. The company also noted success with the expanded rollout of Sponsored Snaps, which is improving engagement with ad content across markets. Looking ahead, Snap expects Q3 revenue between $1.48 billion and $1.51 billion, in line with Wall Street projections.
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