Summary by Moomoo AI
Snap Inc. reported its financial results for the second quarter of 2024, revealing a mix of growth and challenges. The company's revenue increased by 16% year-over-year to $1.236 billion, while its net loss decreased to $248.6 million from $377.3 million in the prior year, indicating a 34% improvement. Diluted net loss per share also improved from $(0.24) to $(0.15). Notably, Snap's Adjusted EBITDA turned positive at $55.0 million, compared to a negative $38.5 million in the previous year. Daily Active Users (DAUs) grew by 9% to 432 million, and Average Revenue per User (ARPU) increased slightly from $2.69 to $2.86. Despite these gains, the company faced a total cost and expense increase to $1.490 billion and a free cash flow decline to $(73.4) million. Snap Inc. is focusing on three strategic priorities: growing its community, accelerating revenue growth, and investing in augmented reality. However, macroeconomic factors and increased competition in advertising are impacting the business. The company's future plans include rigorous investment prioritization and continued engagement with its community to drive success for advertising partners.