Social media company Snap Inc
What Happened: Snap reported second-quarter revenue of $1.07 billion, which was down 4% year-over-year. The revenue total came in ahead of a Street consensus estimate of $1.05 billion, according to data from Benzinga Pro.
The company reported a loss of two cents per share, which beat a Street estimate of a loss of four cents per share.
Snap ended the second quarter with 397 million daily active users, which was up 14% year-over-year. The company said daily active users were up sequentially and year-over-year for North America, Europe and the rest of the global regions.
Spotlight reached 400 million monthly active in the second quarter, with time spent watching content on Spotlight more than tripling year-over-year.
The company said its My AI artificial intelligence-powered chatbot was used by 150 million people since its launch on May 31. Over 10 billion messages have been sent with My AI, making it one of the largest consumer chatbots, according to the company.
"We are testing My AI monetization with sponsored links that connect our community with partners relevant to their conversation in that moment, while helping brands reach Snapchatters who have indicated potential interest in their offerings," the company said.
The Snapchat+ subscription service is now used by over four million paying subscribers.
"We are excited by the progress we have made delivering increased return on investment for our advertising partners, growing our community to 397 million daily active users, and reaching more than 4 million Snapchat+ subscribers," Snap CEO Evan Spiegel said.
What's Next: Snap is guiding for third-quarter revenue to be in a range of $1.07 billion to $1.13 billion, which is ahead of a Street consensus estimate of $945.95 million, according to data from Benzinga Pro.
The company sees daily active users hitting 405 million to 406 million in the third quarter.
"From a revenue perspective, our business remains in a period of rapid transition as we work to improve our advertising platform, while forward visibility of advertising demand remains limited," the company said.
Snap sees investments in artificial intelligence and other items impacting adjusted EBITDA going forward.
SNAP Price Action: Snap shares are down 19% to $10.13 in after-hours trading Tuesday, versus a 52-week trading range of $7.33 to $13.89.
