Latest news with #EvanSpiegel
CNBC
4 days ago
- Business
- CNBC
Pinterest stock falls 10% after earnings miss
Pinterest shares were down about 10% on Thursday after the company reported second-quarter earnings that missed on earnings per share. Here's how the company did, compared to analysts' consensus estimates from LSEG: Sales in Pinterest's second quarter grew 17% year-over-year while net income was $38.76 million, up from $8.9 million a year ago during the same period. Pinterest said that third-quarter sales will come in between $1.033 billion to $1.053 billion, topping analyst estimates of $1.025 billion. The social media company said it had 578 million global monthly active users in the second quarter, ahead of the 574.5 million that StreetAccount was projecting. Pinterest said in May that it had 570 million monthly active users in the first quarter. Pinterest recorded $251 million in second quarter adjusted earnings before interest, taxes, depreciation and amortization, or EBIDTA, which was higher than StreetAccount's estimates of $233 million. "I'm proud of our Q2 results — delivering 17% revenue growth and another quarter of record users," Pinterest CEO Bill Ready said in a statement. "We're also excited that Gen Z has grown to over half of our user base." Snap shares plummeted over 15% on Tuesday after the company reported second-quarter earnings in which global average revenue per user missed expectations. Evan Spiegel, the company's CEO, said in an investor letter that Snap's "topline growth" was negatively impacted by factors including a botched advertising platform update that has since been fixed. Amazon reported second-quarter earnings last Thursday and noted that its online ad sales jumped 23% year over year to $15.69 billion. Reddit reported its latest earnings the same day, and said that second-quarter sales skyrocketed 78% year over year to $500 million. Alphabet beat on the top and bottom lines when it reported its second-quarter earnings on July 23, and Meta said on July 30 that its second-quarter revenue hit $47.52 billion. That represented a 22% increase from the previous year during the same period.
Yahoo
5 days ago
- Business
- Yahoo
Snapchat Parent's Stock Plummets as Ad Platform Issue Hits Results
Key Takeaways Snap reported a wider loss and missed adjusted earnings estimates as it deal with an ad platform glitch. The operator of the Snapchat social media site said the ad problem led to some sales clearing its auction at substantially reduced prices. Snap's revenue was also limited by the timing of Ramadan and tax changes for sales of lower-priced (SNAP) shares snapped 20% lower Wednesday, a day after the operator of the Snapchat social media site posted a higher net loss and adjusted earnings missed forecasts as it dealt with an ad platform glitch. The company reported a net loss of $262.6 million, 6% more than a year ago, and GAAP loss per share of $0.16 was also more than anticipated by analysts surveyed by Visible Alpha. Adjusted EBITDA slumped 25% to $41.3 million, well below the Visible Alpha estimates, while revenue of $1.34 billion was basically in line with expectations. Daily active users increased 9% to 469 million. However, average revenue per user of $2.87 was just $0.01 higher than in 2024, and was down $0.09 from the first quarter. Total costs and expenses jumped nearly 8% year-over-year to $1.60 billion. In a letter to shareholders, CEO Evan Spiegel wrote that revenue growth was "impacted by a number of factors in Q2, including an issue related to our ad platform," which he explained happened because "in our efforts to improve advertiser performance, we shipped a change that caused some campaigns to clear the auction at substantially reduced prices." Spiegel added that revenue was also hurt by the timing of the Muslim holy month of Ramadan, along with the Trump administration's changes to tax rules for purchases of lower-priced imported products. Shares of Snap have lost about a third of their value this year. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Snap's Q2 Shock: Record Revenue Growth Can't Stop Massive Sell-Off
Aug 6 - Snap (NYSE:SNAP) shares plunged over 14% in after-hours trading Tuesday after Q2 results showed engagement trends shifting, raising concerns despite solid revenue growth. CEO Evan Spiegel pointed to a change in how users interact on Snapchat. Instead of posting stories, users are now more inclined to share Spotlight content and start conversations. That shift is changing the platform's core usage in its largest market, the U.S., where engagement metrics are flattening. Warning! GuruFocus has detected 2 Warning Sign with SNAP. North American Monthly Active Users remained flat at 159 million, and Daily Active Users dipped slightly. However, Snap still grew its global user base to 932 million monthly and 469 million daily users, marking 7% and 9% YoY growth, respectively. Despite slowing engagement in its most lucrative region, Snap continues to expand revenue from Snapchat+, its subscription service. That tier hit a $700 million annual run rate, up 64% YoY. Revenue for Q2 came in at $1.345 billion, narrowly beating estimates. But the market reacted to stagnation in user engagement and lack of growth in North America. Analysts remain mixed, with a consensus target of $11.47. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Snap Shares Decline as Ad Glitch Crimps Quarterly Sales
(Bloomberg) — Snap Inc. (SNAP) shares tumbled in premarket trading after the owner of the Snapchat photo-sharing app acknowledged a slowdown in advertising revenue growth, due in part to a technical issue with its ad-buying tools earlier this year. Mayor Asked to Explain $1.4 Billion of Wasted Johannesburg Funds All Hail the Humble Speed Hump PATH Train Service Resumes After Fire at Jersey City Station Major Istanbul Projects Are Stalling as City Leaders Sit in Jail What England's New National Cycling Network Needs to Get Rolling The company on Tuesday reported second-quarter sales that were shy of Wall Street's average estimate, and on a call with investors later said that ad revenue, which rose by 9% in the first quarter, is now gaining at a rate of 3% to 4%. Snap shares, which have fallen 13% so far this year, slid more than 17% in premarket trading on Wednesday after closing at $9.39 in New York. Revenue in the June quarter was crimped when the company shipped an update to its advertising auction that inadvertently allowed marketers to buy ads at 'substantially reduced prices,' Snap said. That issue has been fixed, and 'advertising revenue growth has improved,' Snap said in a letter to shareholders Tuesday. The company, which gets about 90% of its revenue from advertising, forecast overall sales in the current period that will likely be higher than analysts projected. Snap and Chief Executive Officer Evan Spiegel have spent years overhauling the company's advertising technology in an effort to improve user targeting and drive direct sales. Those changes had helped Snap beat revenue expectations in six of the past eight quarters heading into Tuesday's report. In its investor letter, Snap highlighted its Sponsored Snaps advertising unit, which places paid messages in a user's messaging inbox just like those from their friends. Snap debuted the new ads last fall, and said they represent a 'significant pool of inventory' as the company looks for new places for marketers to reach users inside the Snapchat app. Given the new ad inventory, the company told investors it must also focus on increasing demand in order to raise ad prices. Snap has also built a fast-growing subscription business to decrease its reliance on advertising, which can ebb and flow as marketing budgets are adjusted in times of economic uncertainty. Snapchat+, the company's monthly subscription product, has almost 16 million paying subscribers, up from 15 million in the prior quarter and higher than Wall Street analysts expected. These subscriptions make up the bulk of Snap's 'other revenue' category, which reached $171 million in the second quarter, growth of 64%. Spiegel is also restructuring Snap's engineering teams to 'better align' with its business priorities, according to the shareholder letter. As part of the change, Eric Young, Snap's senior vice president of engineering, is departing the company. Snap reported sales of $1.345 billion in the quarter ended June 30, slightly less than the $1.35 billion analysts were looking for. Third-quarter revenue will be $1.48 billion to $1.51 billion. Analysts on average had predicted sales at the low end of that range. The Santa Monica, California-based company posted a second-quarter net loss of $262.6 million, or 16 cents a share. That compared with a loss a year earlier of $248.6 million, or 15 cents. Daily active users climbed 9% to 469 million for the period, topping analysts' average prediction of 468.1 million. (Updates with premarket shares) Russia's Secret War and the Plot to Kill a German CEO AI Flight Pricing Can Push Travelers to the Limit of Their Ability to Pay Government Steps Up Campaign Against Business School Diversity What Happens to AI Startups When Their Founders Jump Ship for Big Tech The GOP Is Choosing Pesticides Over the MAHA Moms ©2025 Bloomberg L.P. Sign up for Yahoo Finance Daily Movers By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
CNBC
6 days ago
- Business
- CNBC
Snap just reported second-quarter earnings
Snap reported second-quarter earnings on Tuesday in which sales were basically in line with analysts' estimates while its global average revenue per user missed expectations. Here is how the company did compared with Wall Street's expectations: Snap said its second-quarter sales grew 9% year over year while it recorded a net loss of $262.6 million. The company's net loss during the same quarter last year was $248.6 million. Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, for the second quarter came in at $41 million, trailing the $53 million that StreetAccount was projecting. Snap said third-quarter revenue will come in between $1.475 billion and $1.505 billion, ahead of Wall Street estimates of $1.475 billion. The company said adjusted EBITDA for the third quarter will be in the range between $110 million and $135 million. That figure's midpoint of $122.5 million is higher than StreetAccount's projections of $116 million. Snap said third-quarter global daily active users will total 476 million, roughly in line with the 475.7 million StreetAccount is expecting. The company's Snapchat+ subscription service is approaching 16 million in the second quarter, representing a 42% year-over-year increase, Snap CEO Evan Spiegel wrote in an investor letter. Snap's subscription service is the "largest driver" to the company's Other Revenue category, rising 64% year over year to $171 million in the second quarter, Spiegel said. Snap's adjusted operating expenses for the second quarter rose 10% year over year to $654 million, Spiegel said in the letter. Spiegel said in an investor letter that it will be "distributing" its engineering teams to "directly support" its business functions, resulting in its core applications team reporting to tech chief Bobby Murphy. The monetization engineering team will be reporting to business chief Ajit Mohan. "Our Chief Information Officer and Chief Information Security Officer will report to me and lead enterprise-wide foundational infrastructure and platform integrity," Spiegel said in the letter. "This new, distributed structure will empower our teams to take greater ownership and drive continued innovation for our community and advertising partners." Eric Young, Snap's senior vice president of engineering who joined the social media company in 2023 from Google, is leaving the company to "pursue a new opportunity," Spiegel said in the letter. Last Thursday, Amazon reported second-quarter earnings in which its online ad sales rose 23% year over year to $15.69 billion, while Reddit reported second-quarter revenue that jumped 78% year over year to $500 million. Alphabet reported its second-quarter earnings on July 23 that beat on the top and bottom lines. Meta said on July 30 that its second-quarter sales grew 22% year over year to $47.52 billion. Pinterest will report its financials on Thursday.
