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Here is why Snap Inc. (SNAP) stock surged in the after-hours on Thursday?

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Snap Inc. (SNAP) shares gained 17.68% in after-hours on Thursday, July 22, 2021, and closed at $74.10 per share. Earlier in the morning session, SNAP’s stock lost 0.66% to close Thursday’s session at $62.97. SNAP shares have risen 171.42% over the last 12 months, and they have moved up 4.08% in the past week. Over the past three months, the stock has gained 10.38%, while over the past six months, it has lost 15.75%.

Let’s have a look at its recent news and developments.

Recent financial results announcement

On July 22, 2021, Snap Inc reported its financial results for the second quarter ended June 30, 2021.

Q2 2021 financial highlights

  • Snap Inc reported a revenue of $982 million in Q2 2021 compared to $454 million in Q2 2020.
  • The total cost and expenses were $1.17 billion in Q1 2021 compared to $765 million in Q2 2020.
  • The company suffered a net loss of $152 million or diluted net loss per share of $0.10in Q2 2021, compared to$326 million or diluted net loss per share of $0.23in Q2 2020.
  • Adjusted EBITDA was $117 million in Q2 2021, compared to $95.6 million in Q2 2020.
  • Operating cash flow was $101 million in Q2 2021, compared to $67 million in Q2 2020.
  • Free Cash Flow was $116 million in Q2 2021, compared to $82 million in Q2 2020.

The financial outlook for Q3 2021

For Q3 2021, the company is expecting

  • Revenue to be in the range of 1,070 million and $1,085 million.
  • Adjusted EBITDA to be between $100 million and $120 million.

Verishop on Snapchat Minis

On July 20, 2021, Verishopbecame the latest fashion source to explore Snapchat Minis, an offering from the social video app that brings snack-size, third-party app features to the platform.

Verishopaims to expand its reach with a shopping model designed for Snapchatters and introduced 11features ranging from movie tickets to voter registration. 

Snapchat app broken on IOS devices

On June 28, 2021, Snapchat faced some unexpected glitches on IOS devices and it stopped working on iPhone according to several reports from the users.

The problem started after the latest version of Snapchat was installed automatically on iPhone and it simply crashed rather than opening the app after the update.

The problems appear to be with the update numbered 11.34.0.35, which was distributed through the App Store over the weekend.

Universal Music Group global licensing deal with Snap

On June 24, 2021, Universal Music Group and Snap signed a multi-year global agreement that will allow Snapchat’s users to incorporate UMG’s catalogue of recorded music and content into creative tools, including Sounds on Snapchat and augmented reality Lenses.

According to the deal, UMG’s entire recorded music catalogue is available on a global basis in Snapchat’s Sounds tool, including search and curated playlists.

Conclusion

The recent financial results were the reason behind its gains in the after-hours on Thursday and it can close the weekly trading by continuing its surge on Friday as well.

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