❯ Snap Q2 Revenue Up 19%, DAU Hits 493M, Shares Jump More Than 10% After Hours

DOUBLE BEATSnap’s Q2 revenue came in at $1.60 billion, up 18.9% year over year, above the $1.53 billion expected; daily active users reached 493 million, up 5.1%, also beating the 487 million consensus. The company guided Q3 revenue above expectations as well, sending shares up more than 10% after hours.

GROWTH DRIVERSBreaking it down: advertising revenue was $1.28 billion, up 9% year over year, while other revenue surged 85% to $316 million — the growth engine is no longer ads themselves but subscriptions and other non-advertising businesses. Adjusted profit came in at $250 million, above the expected $192 million. Monthly active users were 971 million, with global ARPU at $3.25 — and North America ARPU rose 23% to $10.26. North American user numbers have been stagnant for years, but per-user monetization is moving up.

THE STRUCTUREThe piece of this report most worth isolating is the shift in revenue structure: a social company, with ad growth down to single digits, pulled overall growth to nearly 19% on subscriptions. Advertisers need to adjust their read accordingly — if Snap’s revenue depends less and less on ad inventory, it can afford to take a harder line at the negotiating table. North America DAU has barely moved for years; what held up the business this time was that 23% ARPU gain. Monetization efficiency, not user growth, is now the company’s main storyline.

▪ SIGNALAd growth dropped to single digits and Snap still delivered these numbers — that 85% is what held the quarter up.