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Snap Posts Q2 Revenue Beat and Raises Guidance as It Increases AI Spending

With stronger ad demand and healthier cash flow the company is boosting AI infrastructure investment to support revenue growth and a planned consumer AR rollout.

Overview

  • Snap reported Monday that second-quarter revenue rose 19% to $1.60 billion, beating estimates while narrowing its net loss to $164 million and lifting adjusted EBITDA to roughly $250 million.
  • Global daily active users reached 493 million, up about 5% year over year, while North American DAUs fell roughly 7%, creating pressure in the region that generates the most ad revenue per user.
  • Executives credited increased advertiser spending tied to the FIFA World Cup and improved AI-powered ad tools for stronger campaign performance and renewed demand from large advertisers.
  • The company raised third-quarter revenue guidance to $1.70 billion–$1.74 billion and increased full-year infrastructure spending by about $50 million to $1.65 billion–$1.70 billion to scale AI and machine‑learning capacity.
  • Snap plans a consumer event for its SPECS AR glasses on Sept. 16 and is positioning the device as a long-term growth bet even as it balances cost cuts, investor focus on free cash flow, and the risk of weaker high‑value regional user trends.