Snap rallies above $17 IPO price after Q2 results beat estimates
The company responsible for social media app Snapchat, saw its share price rally above IPO levels on Wednesday after smashing earnings estimates in its second quarter.
Snap Inc saw its share price climb above its IPO price of $17 on Wednesday, after impressing investors by exceeding earnings expectations in its Q2 results.
Snap Inc. smashes Q2 earnings expectations
The company behind popular social media app Snapchat saw its revenue increase by 48% year-over-year to $388 million and its adjusted EBITDA improve by 56% year-over-year to $79 million in its second quarter, exceeding expectations.
It also saw its daily active users rise by 8% year-over-year to 203 million.
‘The growth in our community, engagement, and revenue is the result of several transitions we completed over the past 18 months,” Snap Inc. CEO Evan Spiegel said.
‘We look forward to building on our momentum and making significant ongoing progress in each of these areas,’ he added.
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Snap Inc. looks forward to a strong Q3
Looking ahead, the company is already expecting another strong quarterly performance in its third quarter, with revenue expected to be between $410 million and $435 million, compared to the $298 million it recorded in the same period last year.
However, the company is forecasting adjusted EBITDA to be between $85 million and $60 million, compared to the $138 million it secured in Q3 last year.
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