Yesterday after U.S. markets closed for trading, Snap Inc. (SNAP:NYSE), operator the popular Snapchat camera and social media application, announced financial results for its second quarter of 2021 ended June 30, 2021.
The company reported that revenue in Q2/21 increased by 116% to $982 million, up from $454 million in Q2/20. During the same period, Snap mentioned that daily active users (DAUs) increased by 55 million to 293 million, which was 23% higher than the number of DAUs in Q2/20.
The firm stated that in Q2/21 it posted a net loss of $152 million, which it indicated represents a 53% improvement over the net loss of $326 million it registered in Q2/20. The company additionally noted that adjusted EBITDA improved 223% to $117 million in Q2/21, compared to a loss of $96 million in the prior year's corresponding quarter.
The company's CEO Evan Spiegel commented, "Our second quarter results reflect the broad-based strength of our business, as we grew both revenue and daily active users at the highest rates we have achieved in the past four years…We are pleased by the progress our team is making with the development of our augmented reality platform, and we are energized by the many opportunities to grow our community and business around the world."
The firm advised that DAUs increased on both iOS and Android platforms sequentially and year-over-year in all its markets globally. The company stated that it made significant investments and enhancements in both its camera and augmented reality (AR) products and platforms.
Snap indicated that it also upped investments into its own content offerings including the airing of eight new and renewed Snap Originals including Swae Meets World.
The firm stated that in Q2/21 it launched a record 177 new international Discover Channels and grew Spotlight DAUs by 49% with users in the U.S. increasing their average daily use time by over 60% versus Q2/20.
The company said it formed numerous partnerships with other large content, media and social media providers including Camera Kit partnerships with Disney, Bumble and Viber with the goal of bringing and integrating Snap's Camera and AR capabilities into their applications.
Snap also said it announced Snap Kit integrations with both YouTube and YouTube Music, which offers users the ability to share YouTube videos to the Snapchat Camera.
The firm added that in addition, "it rolled out Public Profiles for businesses, allowing any business to create a profile on Snapchat showcasing their Lenses, Highlights, Stories, and shoppable products." In parallel, the company stated that it is integrating is platform with Salesforce in a move that will allowing brands to use their existing customers data to target Snapchatters with ads relevant to them.
The company provided some forward guidance and stated that it expects Q3/21 revenues will increase by 58-60% year-over-year and will be in the range of between $1,070-1,085 million, compared to the $679 million in revenues it posted in Q3/20.
In addition, Snap advised that it estimates Q3/21 adjusted EBITDA will come in at $100-120 million, compared to the $56 million in adjusted EBITDA achieved in Q3/20.
Snap Inc. is based in Santa Monica, Calif., and describes itself as a camera company. The firm's primary product is Snapchat, a camera application that helps people to communicate through short videos and images known as Snaps.
Snap started the day off with a market cap of around $98.9 billion with approximately 1.571 billion shares outstanding. SNAP shares opened nearly 18% higher today at $74.14 (+$11.17, +17.74%) over yesterday's $62.97 closing price and reached a new 52-week high this morning of $79.18. The stock has traded today between $74.00 to $79.18 per share and is currently trading at $78.66 (+$15.69, +24.92%).
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