Oh Snap!

Snap SNAP 35.67 -0.58 -1.60% reported a 2nd Quarter June 2019 loss of $0.06 per share on revenue of $388.0 million. The consensus estimate was a loss of $0.10 per share on revenue of $358.5 million. Revenue grew 48.0% on a year-over-year basis.

The company said it expects third quarter revenue of $410.0 million to $435.0 million. The current consensus revenue estimate is $398.4 million for the quarter ending September 30, 2019. It doesn’t look like momentous news on paper, but beating on both earnings and revenue by a pretty significant amount, AND also increasing outlook by a significant amount results in a pretty nice move in the stock price. Snap is currently up around 15% and is up almost 200% for 2019! Who knew? Some people apparently… Stifel Nicolaus analyst John Egbert upgraded Snap to a buy YESTERDAY before the results came in. The stock closed up over 4% yesterday as a result. Put one in the win column for Mr. Egbert.

Some other pertinent info on Snap’s earnings…

Added 13 million Daily Active Users
Daily Actives up 8% y-o-y
Average number of Snaps per day grew to more than 3.5 billion in Q2
Adjusted EBITDA up 53% y-o-y
Free Cash Flow moved up $131 million TO -$103 million compared to last year
Audience viewing of the Discover platform has grown over 35% y-o-y

“The growth in our community, engagement, and revenue is the result of several transitions we completed over the past 18 months,” said Evan Spiegel, CEO. “We look forward to building on our momentum and making significant ongoing progress in each of these areas.”

Snap is also toying with original content, although they don’t specifically say how many people are watching it, they do say 90% of people who completed first season went on to watch season two in its first month. Interesting metric… Also shows, 3-5 minute premium episodes, tripled it’s viewing time.

The AR Lenses which modify a person’s appearance in real-time, had over 200 million Snapchatters altering appearances within the first two weeks.

Snap has also gotten into the game business, launching Snap Games in Q2 2019 allowing friends to play together.

All in all a good quarter for Snap and positive momentum in both outlook and stock price heading into Q3.