Snapchat Q2 2023 Earnings Report
Key Takeaways
Snap Inc. announced its Q2 2023 financial results, reporting a revenue of $1,068 million, a net loss of $377 million, and 397 million daily active users. The company saw growth in user engagement and made strides in its advertising platform and augmented reality capabilities.
Daily Active Users (DAUs) increased by 14% year-over-year to 397 million.
Total time spent watching Spotlight content more than tripled year-over-year.
Snapchat+ reached over 4 million paying subscribers one year after launch.
The company is focused on accelerating and diversifying revenue growth through improvements to its advertising platform and augmented reality platform.
Snapchat
Snapchat
Snapchat Revenue by Geographic Location
Forward Guidance
Snap Inc. anticipates continued robust growth in its global community, with Q3 DAU expected to reach 405 million to 406 million. Revenue is estimated to be between $1,070 to $1,130 million, and Adjusted EBITDA is expected to be between negative $50 million and negative $100 million.
Positive Outlook
- Continued robust growth in global community is anticipated.
- Q3 DAU is expected to reach 405 million to 406 million.
- Focus on improving advertising platform.
- Investment in ML, AI, and other infrastructure to improve ad performance.
- Careful calibration of operating investments to focus on essential inputs.
Challenges Ahead
- Business remains in a period of rapid transition.
- Forward visibility of advertising demand remains limited.
- Q3 revenue implies negative 5% to flat year-over-year growth.
- Adjusted EBITDA is estimated to be between negative $50 million and negative $100 million.
- Estimated infrastructure costs per DAU of $0.79 to $0.84 in Q3.
Revenue & Expenses
Visualization of income flow from segment revenue to net income