Snap Shares Jump 16% After Q2 Earnings Beat

Snap’s (NYSE:SNAP) stock jumped 16% after the company reported second-quarter earnings that beat Wall Street expectations across the board.

Snap reported earnings per share (EPS) of $0.10 U.S. versus $0.01 U.S. forecast by analysts. The company’s revenue came in at $982 million U.S. compared to $846 million U.S. forecast by Refinitiv data.

Snap’s net loss in the second quarter narrowed 53% to $152 million U.S. from a loss of $326 million a year ago.

The company also reported 293 million daily active users, up nearly 5% from the 280 million the company reported in April of this year. That figure is up more than 23% compared with the 238 million daily users the company reported a year ago.

Average revenue per user in the second quarter was $3.35 U.S. versus $2.92 that had been anticipated by Wall Street.

Snap forecast year-over-year revenue growth of 58% to 60% for the current third quarter. The company expects to reach approximately 301 million daily active users in the third quarter.

The company added that it was not impacted by Apple’s iOS 14.5 privacy changes as it had anticipated. This was due to the mobile operating system update rolling out later than expected.

Snap stock is up 27% year-to-date at $62.97 per share.