Snap just reported second-quarter earnings

Core Insights - Snap Inc. reported a 15% drop in shares following second-quarter earnings that missed expectations for global average revenue per user [1] - The company experienced a net loss of $262.6 million in the second quarter, compared to a net loss of $248.6 million in the same quarter last year [1] Financial Performance - Second-quarter sales grew by 9% year over year, but adjusted EBITDA was $41 million, falling short of the $53 million projected by analysts [2] - For the third quarter, Snap expects revenue between $1.475 billion and $1.505 billion, slightly above Wall Street estimates [2] - The adjusted EBITDA for the third quarter is projected to be between $110 million and $135 million, with a midpoint of $122.5 million, exceeding StreetAccount's estimate of $116 million [3] User Metrics - Snap anticipates global daily active users to reach 476 million in the third quarter, aligning closely with the expected 475.7 million [3] - The Snapchat+ subscription service is nearing 16 million subscribers, marking a 42% year-over-year increase [4] Revenue Streams - The Other Revenue category, driven largely by the subscription service, rose 64% year over year to $171 million in the second quarter [4] - Adjusted operating expenses increased by 10% year over year to $654 million [4] Organizational Changes - The company is restructuring its engineering teams to better support business functions, with core applications reporting to the tech chief and monetization engineering to the business chief [5] - The Chief Information Officer and Chief Information Security Officer will report directly to the CEO, focusing on foundational infrastructure and platform integrity [6] - Eric Young, a senior vice president of engineering, is leaving the company to pursue new opportunities [6] Industry Context - Other companies in the industry are also reporting significant growth, with Amazon's online ad sales up 23% year over year and Reddit's revenue jumping 78% [7] - Meta reported a 22% increase in second-quarter sales, highlighting a competitive advertising landscape [7]