In its Q2 2023 financial results, Snap CEO Evan Spiegel said he was “excited” about the progress the company has made “delivering increased return on investment” for its advertising partners, despite a near four per cent dip in revenue compared to the previous quarter.
On the back of another disappointing earnings release from Snap, which saw revenue drop from just over US$1.1 billion to US$1.067 billion (AU$1.63 billion to AU$1.57 billion) the company’s share price nose-dived by some 17 per cent.
But, in the year to date, Snap’s share price is up by a shade more than 40 per cent.
That immediate revenue drop is concerning given the company boasted of a 14 per cent year-over-year increase in daily active users — which now stands at some 397 million people.
It also said it now has more than four million Snapchat+ subscribers who pay for early access to upcoming features.
Regardless, Snap said that in the quarter just ended it had onboarded new media partners and renewed agreements globally with the likes of ITV in the UK, ProSieben in Germany, Network 18 in India, and ESPN in the Netherlands.
It also said that it had continued to invest in its augmented reality (AR) platform and continued to offer brands such as Disney unique storytelling opportunities.
“As we enter Q3, we anticipate continued robust growth in our global community and, as a result, our financial guidance for Q3 is built on the assumption that DAU will reach 405 million to 406 million in Q3,” said the company in a press release.
“From a revenue perspective, our business remains in a period of rapid transition as we work to improve our advertising platform, while forward visibility of advertising demand remains limited.”