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Can Snapchat’s Ad Business Ever Scale to Rival Meta, YouTube or TikTok?

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variety.com

Todd Spangler NY Digital Editor Snap, despite continuing to grow its overall Snapchat user base and more than doubling the number of active advertisers in the second quarter of 2024, hit a speed bump with the earnings report and Q3 outlook — which missed Wall Street targets.

Snap shares were down more than 25% in early trading Friday to under $9.60/share on the earnings report, released after market close on Aug.

1. Q2 revenue grew 16% year-over-year to $1.24 billion, “despite the impact of a weaker brand advertising environment for certain consumer discretionary verticals,” the company said.

Brand advertising sales were down 1% year-over-year. The top-line number was short of analyst consensus expectations of $1.25 billion.

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