Snap Inc. shares surged 8.14% in pre-market trading, extending a powerful rally that began after the company reported second-quarter financial results that handily exceeded Wall Street expectations.
The Snapchat parent posted revenue of $1.6 billion, up 19% year-over-year, significantly surpassing the consensus estimate of $1.54 billion. Adjusted EBITDA reached $249.6 million, far above the $188.8 million analysts had forecast. The outperformance was fueled by increased advertising spending during the FIFA World Cup and stronger campaign activity from large North American advertisers. The company's AI-powered Smart Campaign Solutions also helped attract advertisers by automating bidding, budgeting, and audience targeting.
For the third quarter, Snap guided revenue of $1.7 billion to $1.74 billion, with the midpoint slightly above the $1.7 billion consensus. The company also highlighted its long-term bet on augmented reality glasses, with a launch event for its Spectacles device scheduled for September 16. The combination of a strong quarterly beat and solid forward guidance drove the sharp pre-market gain.
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