Snap Soars 17% as Q2 Results Show Restructuring Is Paying Off

Snap shares jumped more than 17% Monday after the social media company reported second-quarter revenue of $1.6 billion, up 19% year over year and about $60 million ahead of Wall Street's consensus. The adjusted loss of $0.10 per share was narrower than the $0.12 loss analysts expected.

The standout was profitability. Adjusted EBITDA surged to roughly $250 million from $42 million a year earlier, as total adjusted costs grew just 4% even as the business expanded. Gross margin widened seven percentage points to 58%, and the net loss narrowed to $164 million from $263 million. It was Snap's eighth consecutive quarter of positive free cash flow.

Management guided third-quarter revenue to $1.70 billion to $1.74 billion with adjusted EBITDA of $300 million to $350 million, signaling confidence that the margin expansion can continue into the back half of the year.