Snap (Nasdaq: SNAP) jumped 16% in after hours trading following its strong Q2 earnings report. The company delivered strong figures well above expectations across numerous categories including revenue, earnings, and user growth. The company's stock should open at a new, all-time high following more than 8 months of sideways trading.
Inside the Numbers
In Q2, Snap reported $0.10 per share in earnings which topped expectations of a loss of $0.01 per share. Revenue also beat at $982 million which topped expectations of $846 million. Global daily active users came in at 293 million, while analysts were looking for 290 million. The average revenue per user also handily beat expectations at $3.35 vs. $2.92.
One reason for Snap's better than expected report was that the company said there was a minimal impact from Apple's privacy changes which had been expected to negatively affect social media platforms reliant on delivering targeted ads. It could be due to Apple (NASDAQ: AAPL) rolling out its new OS later than expected or more users opting into Snap's targeting.
So, it's still possible that the effect of these new changes could be felt in the next quarter, but the company said it is seeing higher opt-in rates than expected and now has more time to work with advertisers to navigate the transition.
Overall, the quarter was very positive for Snap and sh...