Snap Inc. ( SNAP ) shares are trading lower on Wednesday after the company reported second-quarter financial results on Tuesday after the market closed.

What To Know: The company reported a loss of 16 cents per share, inline with the consensus estimate. In addition, Snap reported sales of $1.345 billion, beating the consensus estimate of $1.344 billion.

Furthermore, Snap's user base continued to grow in the second quarter, with daily active users rising 9% year-over-year to 469 million and monthly active users climbing 7% to 932 million. Spotlight, the platform's short-form video feature, reached more than 550 million monthly users and now accounts for over 40% of total content time spent.

The company reported operating cash flow of $88 million, up from a $21 million loss a year ago, and free cash flow improved to $24 million from negative $73 million. Despite these gains, Snap posted a net loss of $263 million, slightly wider than the $249 million loss in the same quarter last year.

Q3 Outlook: The company sees sales from $1.47 billion to $1.50 billion, versus the consensus estimate of $1.47 billion.

Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.

UBS analyst Lloyd Walmsley maintained a Neutral rating on Snap and lowered the price target from $10 to $9.

Piper Sandler analyst Thomas Champion maintained a Neutral rating on Snap and lowered the price target from $10 to $9.

JMP Securities analyst Andrew Boone downgraded Snap from a Market Outperform rating to a Market Perform rating.

Guggenheim analyst Michael Morris maintained a Neutral rating on Snap and lowered the price target from $9 to $8.

BMO Capital analyst Brian Pitz maintained an Outperform rating on Snap and lowered the price target from $13 to $12.

See Also: Uber Q2 Earnings: Trips Surge, $20 Billion Stock Buyback, CEO Sees No Slowdown

SNAP Price Action: At the time of writing, Snap shares are trading 17% lower at $7.79, according to data from Benzinga Pro.

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