Evan Spiegel, CEO of Snap Inc., attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 9, 2025.
Snap shares tanked more than 15% Tuesday when it reported second-quarter earnings in which global average revenue per user missed expectations.
Here is how the company did compared with Wall Street's expectations:
Earnings per share: Loss of 16 cents. That figure is not comparable to analysts' estimates.
Loss of 16 cents. That figure is not comparable to analysts' estimates. Revenue: $1.34 billion vs. $1.35 billion expected, according to LSEG
$1.34 billion vs. $1.35 billion expected, according to LSEG Global daily active users: 469 million vs. 467 million expected, according to StreetAccount
469 million vs. 467 million expected, according to StreetAccount Global average revenue per user (ARPU): $2.87 vs. $2.90 expected, according to StreetAccount
ARPU is an indication of how much advertising revenue the company generates from each user. The weaker-than-expected result is particularly noticeable because some of Snap's social media and online ad peers, such as Reddit , have beaten analyst estimates for ARPU during this earnings season.
Snap CEO Evan Spiegel said in an investor letter that the company's "topline growth" was affected by a bungled update to its adverting platform that has since been addressed, the "timing of Ramadan" and the "effects of the de minimis changes," referring to President Donald Trump's trade policies.
Spiegel said the update, made to improve advertiser performance, resulted in some ad campaigns clearing "the auction at substantially reduced prices." Now that Snap has "reverted this change," the company's "advertising revenue growth has improved as advertisers adjust their bid strategies to achieve their objectives," the executive wrote.
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