Shares of Snap Inc. (NYSE: SNAP) have been down over 1% on Thursday. The inventory has dropped 28% year-to-date. The corporate delivered second quarter 2025 earnings outcomes that have been a little bit of a disappointment as losses widened versus the year-ago interval. It has additionally been seeing gradual engagement tendencies in its largest market, which is a trigger for concern.
Q2 numbers
Within the second quarter of 2025, Snap’s complete income elevated 9% year-over-year to $1.34 billion. Internet loss widened to $263 million, or $0.16 per share, from $249 million, or $0.15 per share, within the year-ago interval.
Income and engagement tendencies
Snap recorded income development globally and throughout all its geographies on a year-over-year foundation in Q2. North America noticed revenues improve 7% YoY whereas Europe and Remainder of World noticed income development of 15% and eight% respectively.
Nonetheless, on a sequential foundation, Snap’s income has decreased globally and within the North America area over the previous two quarters. The Remainder of World area noticed income lower in Q2 from Q1. Revenues from Europe have fluctuated sequentially.
Snap’s common month-to-month lively customers (MAU) and common every day lively customers (DAU) have grown persistently over the previous 5 quarters. International MAU grew 7% and DAU grew 9% YoY in Q2. Nonetheless, the corporate has been seeing a decline in customers in North America, its largest market.
In Q2, DAU in North America fell 2% YoY to 98 million. DAU on this area has additionally declined sequentially over the previous two quarters. On the identical time, DAUs in Europe and Remainder of World have elevated in comparison with the prior 12 months and quarter.
In Q2, the corporate’s world common income per consumer (ARPU) remained comparatively unchanged from the year-ago interval at $2.87. The North America market, which generates the very best ARPU, noticed a 9% development on this metric YoY. Alternatively, ARPU on this area has declined sequentially over the previous two quarters. Europe noticed ARPU develop each sequentially and on a YoY foundation within the quarter whereas Remainder of World witnessed a decline in ARPU each from the prior-year interval and the earlier quarter.
Outlook
Snap expects complete income to vary between $1.47-1.50 billion within the third quarter of 2025. The corporate expects DAU to succeed in approx. 476 million in Q3.
