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Snap Corrects Ad Glitch and Leans on Subscription Growth in Optimistic Q3 Outlook

Reversing the ad platform error that weighed on Q2 revenue, the company is banking on Snapchat+ expansion to drive growth next quarter.

Overview

  • Snap posted Q2 revenue of $1.34 billion and ARPU of $2.87, marginally missing analyst forecasts while net losses widened to $262.6 million.
  • The company traced the revenue slowdown to an ad-platform glitch that allowed some campaigns to clear auctions at reduced prices and has since reverted the change.
  • Shares tumbled roughly 15% in after-hours trading as investors reacted to the earnings miss and the operational hiccup.
  • Snapchat+ subscribers climbed 42% year over year to nearly 16 million, underscoring the growing role of subscriptions in diversifying revenue.
  • For Q3, Snap forecasts $1.475 billion–$1.505 billion in revenue, adjusted EBITDA of $110 million–$135 million and 476 million daily active users.