Snap CEO Evan Spiegel said fewer than 3% of the company's monthly active users currently pay for subscriptions, calling it an early stage with substantial room to increase penetration. During an earnings call, Spiegel noted that app-based subscription services across the industry typically achieve 7% to 12% user penetration over the long term. He highlighted newly launched AI-powered features like Lens+ as a major growth driver and said subscription products including Snapchat+, Memories Storage, and Lens+ helped drive an 85% year-over-year increase in other revenue to $316 million in the second quarter. Snap beat Wall Street's second-quarter expectations with an adjusted loss of 10 cents per share on $1.6 billion in revenue and issued a stronger-than-expected third-quarter outlook forecasting $1.70 billion to $1.74 billion in revenue and adjusted EBITDA of $300 million to $350 million.
Snap IncSubscription penetration growth and AI features drive revenue, with strong Q2 results and upbeat Q3 outlook.
