Snapchat parent Snap Inc. now has more than 932 million monthly active users, and around 469 million daily active users, as the social platform continues to grow year over year.

In its second quarter earnings report, Snap posted revenue of $1.34 billion, up 9 percent from a year earlier, and a widened net loss of $263 million, compared to a year-earlier net loss of $249 million. The Q2 loss per-share was 16 cents, against a year-earlier per-share loss of 15 cents.

Snap narrowly beat a Wall Street analyst estimate for Q2 revenue of $1.34 billion, or a year-on-year increase of 8 percent.

But shares in Snap plunged after the market closed as investors looked beyond continued overall revenue growth to the prospects for specific ad platform growth. Stock in the parent company fell $1.35, or 14.4 percent, to $8.04 in after-hours trading.

Going into the second quarter results, Snap faced questions over whether the social media company can keep drawing and retaining advertising dollars in an increasingly competitive digital advertising business, especially against Meta.

Advertising revenue at Snap hit $1.17 billion in the second quarter, up 4 percent year-over-year, due mainly to growth from direct response advertising revenue, which rose 5 percent year-over-year.

But in its investment letter that accompanied its latest financial results, Snap pointed to a recent hitch in its advertising platform that caused some marketers to secure ads at lower prices: “Unfortunately, in our efforts to improve advertiser performance, we shipped a change that caused some campaigns to clear the auction at substantially reduced prices. We have since reverted this change and advertising revenue growth has improved as advertisers adjust their bid strategies to achieve their objectives.”

The latest advertising revenue growth is driven in part by a shift in the company’s approach to advertising, where it has been trying to shift the mix of brand advertising and direct response advertising. That’s after the social media company delayed offering formal guidance in April 2025 in response to economic headwinds.