Snapchat Q2 2023 Report shows a 4% revenue decline

The Snapchat Q2 2023 Report highlights the key takeaways from their earnings, user engagement received, features introduced to attract advertisers and more. 

Snap Inc. has reported its second-quarter earnings report for the year 2023 and has seen revenue of US $1,068 million, compared to US $1,111 million in the prior year. This marks the company’s 4% year-over-year decline in revenue for the second quarter in a row. 

The company has also reported a net loss of US $377 million, compared to $422 million in the prior year.

Here are a few more takeaways from the report.

User Engagement

• Daily active users (DAUs) were 397 million in Q2 2023, an increase of 50 million, or 14% year-over-year.
• Total time spent watching Spotlight content tripled year-over-year, reaching more than 400 million monthly active users on average in Q2, an increase of 51% year-over-year.
• Since launching My AI, their AI-powered chatbot, over 150 million people have sent over 10 billion messages.

Also Read: There are no plans of monetizing Threads right now: Shweta Bajpai, Meta

Advertising

• The combination of improvements to Snap’s machine learning (ML) infrastructure and systems for ad ranking and optimization have led to more relevant ads and a more than 30% increase in purchase-related conversions quarter-over-quarter.
• Launched ads in Spotlight for all advertisers globally, allowing brands to reach the Snapchat audience.
• They are testing My AI monetization with sponsored links that connect the community with partners relevant to their conversation while helping brands reach Snapchatters who have indicated potential interest in their offerings.
• Launched First Story, which enables advertisers to reserve the first video ad between Friend Stories.

Q3 Outlook

• They are anticipating DAU to reach 405 million to 406 million in Q3. 
• From a revenue perspective, it was reported that Snap Inc. remains in a period of rapid transition as they work to improve their advertising platform, while forward visibility of advertising demand remains limited. 
• Q3 revenue is estimated to be between US $1,070 to US $1,130 million implying negative 5% to flat year-over-year growth. 
• Estimated Adjusted EBITDA will be between negative US $50 million and negative US $100 million as they continue to invest in ML, AI, and other infrastructure to improve ad performance, drive deeper content engagement, and bring innovative product experiences.