that the initial lift in user count at the start of the pandemic "dissipated faster than we anticipated as shelter-in-place conditions persisted." The app likely got an initial boost from people who were stuck at home and looking for something to do, but it seems the growth ceiling was lower than Snap had thought.
Without big Q3 events to bolster ad dollars, Snap will have to remain laser focused on proving itself to the advertisers it has won during the pandemic. There's cautious optimism among marketers and digital publishers that the worst of the pandemic's economic impact is over, but there's also plenty of uncertainty as cases rise again in the US. With many of the traditional Q3 tentpole events — summer blockbuster movie launches, back-to-school, the start of the NFL season — already shelved or in limbo, Snap has less low-hanging fruit to rely on. It will need to focus on keeping its current slate of digitally-focused advertisers happy.
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