Snap beats Q2 revenue estimates on World Cup ads; shares jump 13%

Snap beat second-quarter revenue estimates thanks to higher advertising spending during the FIFA World Cup and stronger campaigns from large North American advertisers, sending shares up 13% in extended trading, Reuters reported. Second-quarter revenue rose about 19% to $1.60 billion, above the $1.54 billion analysts estimated, according to LSEG data cited by Reuters. Daily active users increased about 5% to 493 million in the three months to June 30, matching the prior two quarters' growth pace, though North America DAUs fell nearly 7% and Europe about 2%. CEO Evan Spiegel said that after several quarters of improving ad products and go-to-market work, the company saw better momentum with large North America advertisers, with World Cup-related spending contributing alongside continued strength among small and medium-sized businesses. Snap is focusing on direct-response ads and AI-powered tools for automated bidding, budgeting, and user targeting. The company expects third-quarter revenue of $1.70 billion to $1.74 billion, midpoint slightly above the $1.70 billion estimate, and adjusted EBITDA of $300 million to $350 million versus an estimate of $329.9 million. Reuters noted shares were down about 37% this year amid competition from Meta. Snap said it will share more details on its Specs augmented-reality glasses at a Los Angeles launch event on September 16 after unveiling the $2,195 consumer device in June.