Core Viewpoint - Snap is expected to report its second-quarter 2025 results on August 5, with revenues estimated at $1.34 billion, reflecting an 8.03% increase year-over-year, while earnings are projected to decrease by 50% to 1 cent per share [2][10]. Financial Performance - The Zacks Consensus Estimate indicates that Snap has consistently surpassed earnings expectations in the past four quarters, with an average positive surprise of 18.57% [3]. - The anticipated revenue growth is supported by Snap's Direct Response ad business, which constituted 75% of total ad revenues in the first quarter, alongside strong demand from small and medium-sized businesses (SMBs) [7][10]. Cost and Investment Factors - Snap is likely to experience pressure on profitability due to ongoing investments in its advertising platform and content infrastructure, as well as increased spending on AI and machine learning [4][10]. - Selective hiring in engineering and go-to-market roles to support SMB clients may have further constrained margin expansion, despite a lowered full-year cost guidance by $50 million [5][10]. User Growth and Engagement - Daily active users (DAUs) are projected to rise from 460 million to 468 million, with the Zacks Consensus Estimate for total global DAUs at 467.95 million for the second quarter, driven by growth in emerging markets [8][10]. - Snap's expanding global reach, with monthly active users surpassing 900 million in April, is expected to enhance engagement and contribute to top-line growth [8][10]. Earnings Expectations - Snap currently has an Earnings ESP of -100.00% and a Zacks Rank of 2, indicating a challenging outlook for an earnings beat in the upcoming report [11].