Here’s What To Expect From Snap’s Impending Q2 2018 Earnings

Morning Report: Snap reports earnings after the bell. Will social media companies go zero for three?

Today, after the bell, Snap, parent company of the popular Snapchat social app, will report its second quarter performance. For public social media companies, it’s the last shot at salvaging their dignity. The two other firms that form the public market social triumvirate, Facebook and Twitter, were both sharply repriced by public markets after reporting their own Q2 financial performance and forecasts.

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Snap has a history of uneven earnings, making it a historically unlikely candidate on which to pin this particular responsibility. But it’s earnings day all the same, so let’s take a peek at what investors expected.

Per Yahoo Finance’s provided analyst roundup, investors expect:

• Snap Q2 revenue of $290.08 million, up from its first quarter result of $230.7 million.
• Snap Q2 earnings per share (adjusted) of -$0.15, up from its first quarter result of -$0.17 (adjusted).

Snap is a deeply unprofitable company. In the first quarter, Snap’s net loss was far larger than its revenue for the period, losing $385.8 million against its less than quarter billion in top line. The firm’s adjusted EBITDA, a dramatically non-GAAP metric, was negative $217.9 million against its $230.7 million in revenue during the period.

The self-described camera company also suffers from slowing user growth, something that bedeviled Twitter and Facebook. Snap grew its daily active users by just two percent sequentially in the first quarter. If it can accelerate that figure in Q2 will be hugely pertinent to the market’s reaction to its earnings package.

All that said, Snap enjoys low expectations. Given that Twitter and Facebook have already executed their twin belly-flops, perhaps Snap can snag a nice share-price bump on the cheap. We’ll find out when the markets close.

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