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Snap's Q2 2024 earnings call reveals a remarkable trajectory, with monthly active users surpassing 850 million and daily active users reaching 432 million, inching closer to the goal of 1 billion. The company's revenue climbed to $1.24 billion, marking a 16% increase year-over-year, spurred by a 10% rise in advertising revenue. Notably, the Direct Response advertising segment experienced a robust 16% growth, facilitated by a surge in active advertisers. CFO Derek Andersen shared that 'Other Revenue' soared 151% year-over-year, bolstered by the success of Snapchat+, which now has over 11 million subscribers. Effective cost management has transformed an Adjusted EBITDA of $55 million, a sharp contrast to last year's loss, setting the stage for continued operational improvements. Looking ahead, Snap projects daily active users to reach approximately 441 million in Q3 2024 with revenue expectations between $1.335 billion and $1.375 billion. With innovative features enhancing user engagement and a strong financial foundation, investors should keep a close eye on Snap's evolution and insights expected at the upcoming Snap Partner Summit on September 17.

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Snap reported Q2 2024 results that highlighted significant growth in both user engagement and financial performance. The company reached more than 850 million monthly active users, with 432 million daily active users, bringing it closer to its goal of 1 billion monthly active users. CEO Evan Spiegel emphasized, “Our focus on visual communication... has been a strategic advantage,” noting that approximately 80% of Snapchat users are above 18 years old.

In terms of financial metrics, total revenue was $1.24 billion, up 16% year-over-year, driven by a 10% increase in advertising revenue to $1.13 billion. The Direct Response (DR) advertising segment saw a notable uptick of 16%, buoyed by a significant increase in active advertisers—more than doubling year-over-year. Notably, CFO Derek Andersen stated, “Other Revenue... up 151% year-over-year to reach $105 million,” largely thanks to the Snapchat+ subscription service, which now boasts over 11 million subscribers.

Cost management played a crucial role in Snap's financial health, yielding an Adjusted EBITDA of $55 million, a substantial shift from a loss of $38 million a year prior. Andersen explained, “The combination of topline progress and expense discipline... set us up well for continued improvement in operating leverage.”

Looking forward, Snap anticipates continued user growth, projecting daily active users to reach approximately 441 million in Q3 2024. The company provided a revenue guidance range of $1.335 billion to $1.375 billion for Q3, suggesting year-over-year growth between 12% to 16%. Andersen noted, “We expect this growth to be driven predominantly by the DR and Snapchats+ business.”

As Snap continues to innovate, engagement remains a focal point. Spiegel pointed to enhanced features like Map Reactions, Editable Chats, and My AI Reminders as pivotal in fostering deeper connections among users. The growth in global content viewership—a 12% year-over-year increase—reflects successful investments in machine learning models for better content personalization.

In his concluding remarks, Spiegel underscored the company’s long-term vision, stating, “With a strong financial foundation and our track record of innovation, we are well-positioned to fulfill our long-term vision for augmented reality.” Investors should look forward to more developments at the upcoming Snap Partner Summit on September 17, where further insights on Snap's strategic direction will be shared.