Snap Q2 revenue beats expectations as user growth continues; shares soar
SNAP•Analyst coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 32 "hold" and 3 "sell" or "strong sell".
The average consensus recommendation for the software peer group is "buy".
Wall Street's median 12-month price target for Snap Inc is $7.00, about 49.3% above its July 31 closing price of $4.69.
The stock recently traded at 7 times the next 12-month earnings versus a P/E of 10 three months ago.
Key quarterly figures
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $1.60 bln | $1.54 bln (35 Analysts) |
| Q2 Loss Per Share | $0.10 | ||
| Q2 Net Loss | $163.96 mln | ||
| Q2 Adjusted EBITDA | Beat | $249.62 mln | $188.79 mln (34 Analysts) |
| Q2 Free Cash Flow | $120.54 mln | ||
| Q2 Operating Income | -$170.72 mln |
Outlook and result drivers
The company did not provide specific guidance in the press release.
Snap said improved advertising performance contributed to revenue growth and margin expansion. It also cited rapid growth in its direct revenue business as a driver of results.
CEO said disciplined investment helped increase free cash flow per share.
