Key Takeaways
- Snap shares plunged in extended trading after the Snapchat parent issued a third-quarter revenue forecast that disappointed investors.
- Guidance for adjusted EBITDA was also lower than analysts expected.
- Snapchat said it would offer further updates at a “Partner Summit” on Sept. 17.
Shares of Snap (SNAP) were hit hard in extended trading Thursday, dropping after the Snapchat parent offered a third-quarter revenue forecast that disappointed investors.
The social-media company’s shares can move dramatically—in either direction—on its results, and today was no exception. Snap’s stock was recently off some 18%, extending losses of 3.8% seen during the regular session as stocks fell broadly.
The company in a press release said third-quarter daily average users would be 441 million. That’s more than Wall Street expected, according to estimates compiled by Visible Alpha. But its revenue guidance for the quarter, a range of $1.335 billion to $1.375 billion, compared less favorably to the $1.36 billion consensus.
Guidance for adjusted earnings before interest, taxes, depreciation and amortization also came in lower than forecast.
“As we move forward into the second half of 2024, we will remain focused on prioritizing our investments carefully to deliver against the cost plans we have set out for our business, while investing prudently to deliver for our community and our partners,” the company wrote in a letter to investors.
Snapchat said it would offer further updates at a “Partner Summit” on Sept. 17. Its news came a day after the latest results from Facebook parent Meta Platforms (META), shares of which rose today.