Snap Shares Plunge 25% Following Weak Q2 Results, Lack of Guidance By

© Reuters. Snap (SNAP) Shares Plunge 25% Following Weak Q2 Results, Lack of Guidance

By Davit Kirakosyan

Snap (NYSE:SNAP) shares plunged 25% after-hours following the company’s weak second-quarter earnings results and lack of guidance. While EPS of ($0.02) came in better than the consensus estimate, the revenue of $1.11 billion (up 13% year-over-year) missed the consensus estimate of $1.15 billion. Q2 DAU (Daily Active Users) were 347 million, representing an increase of 18% year-over-year.

The company didn’t provide Q3 guidance for revenue or adjusted EBITDA due to uncertainties related to the operating environment.

Several analysts have already blasted the lack of guidance, calling it the "focus point of this print."

A Goldman Sachs analyst noted, "[w]hile Snap continues to see a series of solid engagement trends (users, time spent & new product engagement), the revenue outlook clearly deteriorated as the quarter progressed (and only seems to have worsened since their 2H May pre-announcement at an industry conference)."

The company’s Board of Directors has authorized a stock repurchase program of up to $500 million of its Class A common stock.

Snap's weak results and lack of guidance sent shares of peers like Meta Platforms Inc (NASDAQ:META) , Alphabet (NASDAQ:GOOGL), Twitter (NYSE:TWTR), and Pinterest (NYSE:PINS) 2-7% lower.

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!