Nearly 1 Billion People Now Use Snapchat Every Month

Snap Inc. (NYSE: SNAP ) stock climbed nearly 9% in Tuesday’s premarket session after the social media company reported second-quarter results that topped Wall Street expectations and issued third-quarter revenue guidance above estimates.

Snap’s user base continued to expand during the second quarter, underscoring the platform’s growing global reach.

Monthly active users rose to 971 million, bringing Snapchat within striking distance of the 1 billion milestone, while daily active users climbed to 493 million.

The company said stronger engagement across products such as Spotlight, Snap Map and AI-powered recommendations helped drive user growth.

Snap Earnings Beat On Strong Ad Growth Snap reported a second-quarter loss of 10 cents per share, beating analysts’ expectations for a loss of 12 cents, according to Pro.

Revenue rose 19% year over year to $1.6 billion, exceeding the consensus estimate of $1.54 billion.

Advertising revenue increased 9% from a year earlier to $1.28 billion.

The gain was driven by stronger spending from large North American advertisers, international expansion, adoption of AI-powered Smart Campaigns, momentum among small and medium-sized businesses, and demand tied to the FIFA World Cup.

Other revenue surged 85% year over year, supported by growth in Snapchat+, Memories Storage and Lens+ subscriptions.

Adjusted EBITDA jumped to $250 million from $41 million a year earlier.

The company ended the quarter with approximately $2.7 billion in cash and marketable securities.

Over the past 12 months, Snap generated $919 million in operating cash flow and $706 million in free cash flow, marking its eighth consecutive quarter of positive free cash flow.

AI, Specs Drive Long-Term Strategy CEO Evan Spiegel said artificial intelligence is helping Snap develop products faster, improve user engagement and deliver better results for advertisers.

He said free cash flow per share has become the company’s primary long-term financial objective.

Spiegel also described Specs, Snap’s augmented reality glasses, as the company’s largest long-term growth opportunity.

He said more details will be announced at a launch event in Los Angeles on Sept.

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The CEO added that Snap’s U.S. audience continues to expand, led by users aged 35 and older.

He also said the company’s AI-powered code reviewer now handles 90% of pull requests across the organization.

User Growth And Outlook Monthly active users increased 4% year over year to 971 million, while daily active users reached 493 million.

Global daily active users grew by 24 million, or 5%, and trailing 12-month average revenue per user was $13.19.

Spiegel said North American daily active users have stabilized as Snap continues to focus on improving user activation, retention and engagement.

He added that the company is monitoring the regulatory environment for potential effects on user growth and product experience, while customer interest in Specs remains strong despite the product being a high-consideration purchase.

For the third quarter, Snap expects revenue of $1.70 billion to $1.74 billion, above the Wall Street estimate of $1.70 billion.

The company also projects adjusted EBITDA of $300 million to $350 million.

Chief Financial Officer Derek Andersen said the stronger outlook reflects durable improvements across the business.

He added that direct revenue is expected to continue growing materially faster than overall revenue beyond 2026.

The company also plans to launch a multi-year share repurchase program in 2027 after completing its current buyback program in the fourth quarter.

Snap Price Action SNAP Price Action: Snap shares were up 6.75% at $5.380 during premarket trading on Tuesday, according to Pro data.

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