Snap’s shares declined 2.1% following earnings as investors appeared cautious despite user growth and solid progress in advertising metrics, reflecting lingering concerns about headwinds from large advertisers and a measured outlook on revenue expansion.

• Daily active users rose 5% year-over-year to 483 million, with monthly active users reaching 956 million, showing solid user base expansion.
• Total revenue increased 12% year-over-year to $1.53 billion; advertising revenue grew 3% while other revenue surged 87%, reflecting diversification.
• Net loss improved to $89 million, with operating and free cash flow at $327 million and $286 million, respectively, indicating better cash generation.
• Advertising growth was led by SMB strength and lower-funnel products, including a 30% growth in Dynamic Product Ads and 27% growth in goal-based bidding revenue.
• Large North American advertisers remained a headwind, dampening broader confidence in the ad revenue outlook despite early signs of recovery being reported.