- Snap will report its Q2 2020 earnings after the markets close on Tuesday.
- Analysts are predicting Snap to see an increase in both user engagement and daily active users, which they estimate to be reported at 239.1 million.
- Digital advertising has seen substantial negative impact from the coronavirus pandemic, and Snap results could be a barometer for the future of the industry.
- Snap's ad business in Q1 2020 defied analyst expectations, and some analysts think it could see a boost in its ad business as brands boycott Facebook.
- Visit Business Insider's homepage for more stories.
Snap reported better-than-expected Q2 revenue but fell behind analysts' estimates for daily active users.
Silicon Valley and Wall Street will be looking to the results to gauge the health of the digital advertising industry.
Here's are Wall Street analysts' average estimates for Tuesday's earnings, via Bloomberg:
- Revenue: $454.2 million, up 17% year-on-year (versus $441.6 million estimated)
- Daily Active Users: 238 million, up 17% year-on-year (versus 239.1 million estimated)
- Earnings Per Share (adjusted): Loss of $0.09 (versus estimated $0.10 loss)
Analysts were expecting Snap to see growth in user engagement and daily active users in Q2 2020 on the back of a better-than-expected first quarter for the social media company. Digital platforms have continued to see upticks in use through the first half of 2020, and analysts expect second-quarter results to show digital ad revenue slowly starting to recover.
Snap's stock price has risen 55% in 2020, bucking the trend of a recession many on Wall Street are seeing.
Digital advertising has taken a hit due to the coronavirus pandemic, but some analysts are starting to see online ad spending pick back up. JP Morgan analysts said they expect Snap's ad revenue recovery to be stronger than Alphabet, Twitter, or Pinterest.
Snap declined to provide guidance surrounding third-quarter results due to the "ongoing pandemic."
Snap will hold a conference call Tuesday at 5 pm EDT to discuss its Q2 2020 financial results.
Get the latest Snap stock price here.
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