Snap (NYSE: SNAP) reported Q2 EPS of ($0.02), $0.23 better than the analyst estimate of ($0.25). Revenue for the quarter came in at $1.07 billion versus the consensus estimate of $1.05 billion.

GUIDANCE:

Snap sees Q3 2023 revenue of $1.07-1.13 billion, versus the consensus of $1.01 billion.

As we enter Q3, we anticipate continued robust growth in our global community and, as a result, our financial guidance for Q3 is built on the assumption that DAU will reach 405 million to 406 million in Q3. 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. Our guidance range for Q3 revenue reflects our best estimate of these factors, with total revenue estimated to be between $1,070 to $1,130 million implying negative 5% to flat year-over-year growth. At this level of revenue, we estimate that Adjusted EBITDA will be between negative $50 million and negative $100 million reflecting estimated infrastructure costs per DAU of $0.79 to $0.84 in Q3, as we continue to invest in ML, AI, and other infrastructure to improve the performance of our ad platform, drive deeper content engagement, and bring innovative product experiences to our community. This forecast also assumes modest sequential headcount growth as we continue to carefully calibrate our operating investments to focus on the inputs most essential to the acceleration of topline growth.For earnings history and earnings-related data on Snap (SNAP) click here.