Snap(US:SNAP) 智通财经网·2025-08-05 23:42Core Viewpoint - Snap Inc. has acknowledged a slowdown in advertising revenue growth, attributed partly to technical issues with its advertising purchasing tools earlier this year, leading to a significant drop in stock price [1][3]. Financial Performance - For Q2, Snap reported revenue of $1.345 billion, slightly below analyst expectations of $1.35 billion, with a projected revenue range of $1.48 billion to $1.51 billion for Q3 [1][3]. - The company experienced a net loss of $262.6 million in Q2, equating to a loss of $0.16 per share, compared to a loss of $248.6 million or $0.15 per share in the same period last year [1]. - Daily active users grew by 9% to 469 million, surpassing analyst expectations of 468.1 million [1]. Advertising Revenue Insights - Snap's revenue was pressured in June due to an update in its advertising auction system, which inadvertently allowed marketers to purchase ads at significantly reduced prices; this issue has since been resolved [3]. - Approximately 90% of Snap's revenue comes from advertising, and the company anticipates that current quarter sales may exceed analyst expectations [3]. Advertising Strategy and Innovations - Snap has been reforming its advertising technology to enhance user targeting and drive direct sales, achieving revenue above expectations in six out of the last eight quarters [3]. - The company highlighted its Sponsored Snaps advertising segment, which places paid content in users' inboxes, akin to messages from friends, representing a significant advertising inventory [3]. Subscription Business Growth - Snap's subscription product, Snapchat+, has nearly 16 million paying users, up from 15 million in the previous quarter, exceeding Wall Street expectations [4]. - Subscription revenue reached $171 million in Q2, marking a 64% increase and constituting a major portion of Snap's "other revenue" category [4]. Organizational Changes - Snap is restructuring its engineering team to better align with business priorities, which includes the departure of Eric Yang, the Senior Vice President of Engineering [6].