Quarterly numbers
User growth and engagement
Snap’s monthly active users (MAUs) reached over 850 million in Q2, as it aims for 1 billion MAUs. Daily active users (DAUs) stood at 432 million, which was up 9% YoY. DAUs in North America dipped slightly to 100 million, while DAUs in Europe grew 3% to 97 million. Rest of World DAUs grew 16% to 235 million in Q2.
During the quarter, Snap saw improvement in content engagement with global time spent watching content growing 25% YoY. Global content viewers grew 12% YoY in Q2. Growth in engagement was mainly driven by growth in total time spent watching Spotlight and Creator Stories.
Advertising
In the second quarter, Snap’s advertising revenue increased 10% YoY to $1.13 billion. Direct response (DR) advertising revenue rose 16% YoY, supported by strong growth in active advertisers and early contributions from product improvements. Brand-oriented advertising revenue fell 1% YoY, mainly due to weak demand in certain consumer discretionary verticals such as retail, technology, and entertainment.
During the second quarter, Snap witnessed strength in DR in North America, helped by robust growth in the small and medium-sized customer segment. Brand-oriented demand remained weak in this region. The company witnessed continued progress on its DR ad platform in both Europe and Rest of World during the quarter while the demand environment for brand-oriented advertising solutions remained relatively stable in Europe.
Outlook
For Q3 2024, Snap expects revenue to range between $1.33-1.37 billion, representing a growth of 12-16% YoY. The company anticipates DAUs will reach approx. 441 million in the third quarter.