Snap's stock dropped more than 18% following disappointing second quarter earnings, reporting advertising revenue growth of only 4%, below Wall Street's expectations. The company cited problems with its auction system, resulting in campaigns sold at reduced rates. Adjusted earnings per share reported at $0 did not meet expected $0.02, while the quarterly revenue reached $1.34 billion, also falling short of the $1.35 billion forecast. While daily active users met expectations, North American user numbers declined slightly against projections, reflecting ongoing challenges in Snap's advertising business.
Snap's advertising revenue grew at its slowest pace in over a year, rising approximately 4% to $1.17 billion in Q2, missing Wall Street expectations of $1.22 billion.
The issue with Snap's auction system led to advertising campaigns selling for substantially reduced prices, impacting revenue and earnings expectations.
Snap's adjusted earnings per share of $0 fell short of the $0.02 expected, and its quarterly revenue of $1.34 billion was less than the anticipated $1.35 billion.
Despite having 469 million global daily active users, the number of North American users at 98 million fell slightly short of the 99 million projected by analysts.
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