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Snapchat Revenue Surges on Ad, Subscription Growth
4 Aug
Summary
- Snap reported 19% revenue growth, reaching $1.6 billion in Q2.
- Subscription revenue increased 85%, boosting overall financial performance.
- The company achieved positive free cash flow for eight consecutive quarters.
Snap Inc. reported a robust second-quarter performance, with revenue climbing 19% to $1.6 billion. Advertising revenue saw a notable increase of 9%, reaching $1.28 billion. Complementing this, other revenue streams, including subscription offerings like Snapchat+ and Lens+, surged by 85% to $316 million.
The company's strategic focus on free cash flow per share is yielding positive results. Snap has now achieved eight consecutive quarters of positive free cash flow, totaling $121 million in the recent quarter and $706 million over the past 12 months. Gross margin improved to 58%.
Snapchat's active user base continues to expand, with monthly active users reaching 971 million and daily active users totaling 493 million. CEO Evan Spiegel expressed confidence in converting this scale into durable growth and improved cash generation.
Financially, the net loss narrowed to $164 million, an improvement of $99 million year-over-year, while adjusted EBITDA increased to $250 million. The company also made significant progress in debt reduction, repaying over $2 billion in convertible notes.
