Daily Active Users increased 22% year-over-year
to 265 million
Fourth quarter revenue increased 62%
year-over-year to $911 million
Fourth quarter operating cash flow improved 21%
year-over-year to $(53) million
Snap Inc. (NYSE: SNAP) today announced financial results for the
quarter and full year ended December 31, 2020.
Financial Highlights
- Operating cash flow improved by $14 million to $(53) million in
Q4 2020, compared to the prior year.
- Free Cash Flow improved by $7 million to $(69) million in Q4
2020, compared to the prior year.
- Common shares outstanding plus shares underlying stock-based
awards totaled 1,630 million at December 31, 2020, compared to
1,576 million one year ago.
- Revenue increased 62% to $911 million in Q4 2020, compared to
the prior year.
- Net loss and Adjusted EBITDA were $(113) million and $166
million in Q4 2020, respectively, compared to $(241) million and
$42 million in the prior year, respectively.
- Net loss and Adjusted EBITDA were $(945) million and $45
million in 2020, respectively, compared to $(1.0) billion and
$(202) million in the prior year, respectively.
“We’re grateful for the opportunity to serve our community and
partners through this challenging period of time,” said Evan
Spiegel, CEO. “Our team has worked tirelessly to help people stay
close with their friends and family even while they are physically
apart, and we’re proud of the strong results we delivered for our
advertising partners this quarter and over the full year. We
delivered our first full year of Adjusted EBITDA profitability and,
as we look towards the future, we’re excited to build on our
investments in augmented reality, mapping, and content to drive our
ongoing growth.”
Three Months Ended December
31,
Percent
Twelve Months Ended December
31,
Percent
2020
2019
Change
2020
2019
Change
(Unaudited)
(in thousands, except per
share amounts)
Cash used in operating activities(1)
$
(52,545
)
$
(66,842
)
(21
)%
$
(167,644
)
$
(304,958
)
(45
)%
Free Cash Flow(1)
$
(68,992
)
$
(75,935
)
9
%
$
(225,476
)
$
(341,436
)
34
%
Common shares outstanding plus shares
underlying stock-based awards
1,629,620
1,576,035
3
%
1,629,620
1,576,035
3
%
Operating loss
$
(97,236
)
$
(253,596
)
(62
)%
$
(862,072
)
$
(1,103,328
)
(22
)%
Revenue
$
911,322
$
560,888
62
%
$
2,506,626
$
1,715,534
46
%
Net loss(2)
$
(113,099
)
$
(240,704
)
(53
)%
$
(944,839
)
$
(1,033,660
)
(9
)%
Adjusted EBITDA
$
165,609
$
42,307
291
%
$
45,163
$
(202,230
)
122
%
Diluted net loss per share attributable to
common stockholders
$
(0.08
)
$
(0.17
)
(53
)%
$
(0.65
)
$
(0.75
)
(13
)%
Non-GAAP diluted net income (loss) per
share
$
0.09
$
0.03
200
%
$
(0.06
)
$
(0.16
)
63
%
(1)
Cash used in operating activities and free
cash flow for the three and twelve months ended December 31, 2020
includes a $98 million payment from non-recurring legal charges
related to the securities class action in 2019. See page 10 for
reconciliation of net loss to Adjusted EBITDA.
(2)
Net loss for the three and twelve months
ended December 31, 2019 includes $100 million of non-recurring
legal charges. See page 10 for reconciliation of net loss to
Adjusted EBITDA.
Q4 2020 Summary & Key Highlights
We saw increased engagement across key metrics:
- DAUs were 265 million in Q4 2020, an increase of 47 million, or
22%, year-over-year.
- DAUs increased sequentially and year-over-year in each of North
America, Europe, and Rest of World.
- DAUs increased sequentially and year-over-year on both iOS and
Android platforms.
- On average, Snapchatters opened Snapchat 30 times every day in
Q4 2020.
We continue to invest in our Discover platform as a
destination for content that entertains and informs:
- Over 90% of the U.S. Gen Z population watched Shows and
publisher content in Q4 2020.
- Total daily time spent by Snapchatters over the age of 35
engaging with Shows and publisher content increased by more than
30% year-over-year.
- Digital native creator of sports and lifestyle content Wave.tv
reached an average monthly audience of 64 million
Snapchatters.
- “Will From Home”, our popular Snap Original featuring Will
Smith, returned to Snapchat for its highly anticipated second
season.
- We launched a record 97 new international Discover channels in
Q4 2020.
We continue to invest in our camera and augmented reality
platforms:
- Over 200 million daily active users engage with augmented
reality every day on average.
- In December, we held our third annual augmented reality Lens
Fest event celebrating our Lens Creator community and their AR
creations, which attracted over 5,000 attendees joining
virtually.
- Our ‘Cartoon’ Lens powered by real time machine learning
generated 1 billion impressions in its first three days after
launch.
- We added the ability for Snapchatters using Scan to search food
and wine labels, surfacing nutritional information and tasting
notes in partnership with nutrition app Yuka and wine app
Vivino.
- We released updates to Lens Studio, introducing new tools and
workflows to better manage, create, and load Lenses, while adding
capabilities for developers to build LiDAR-powered Lenses.
- We launched our first-ever 5G-enabled Landmarker Lens in
partnership with Verizon. The Lens uses our augmented reality
technology and Verizon’s 5G Ultra Wideband capabilities to bring
the soul band Black Pumas at the New York Public Library to
life.
We strengthened our ad platform to drive improved outcomes
for advertisers:
- We partnered with NYX Professional Makeup, Ralph Lauren, Sweat,
and The New York Times to launch augmented reality-powered
advertising experiences.
- We implemented a partnership with Perfect Corp to enable more
than 200 beauty brands to upload their catalogs to the Snap Camera
for augmented reality try-on.
- We added app install as a goal-based bidding objective for
sponsored AR Lenses.
- We launched Snap Connect, an extension of our online learning
portal Snap Focus that focuses specifically on direct response
advertising.
- OnePlus (India) created Lenses for Diwali as a means to bring
people together safely during a pandemic. Their Lenses garnered
over 80 million impressions and reached over 14 million
Snapchatters in India.
We continue to innovate to better serve our large and engaged
community:
- We launched Spotlight, our newest platform surfacing the most
entertaining Snaps from our community, and our early investments
have helped Spotlight grow to over 100 million monthly active users
in January.
- We launched our first Snap Kit integration with Twitter,
enabling Snapchatters to easily share what’s happening on Twitter
over the Snapchat camera on iOS, with Android soon to come.
- We partnered with Unity to extend the reach of Unity’s ads to
Snapchat advertisers through the Snap Audience Network, as well as
bring Snap technology to game developers through Snap Kit.
- We released Bitmoji Paint, our internally developed Snap game
allowing Snapchatters to paint different pixelated canvases using
their Bitmoji avatar along with other users around the world.
Financial Guidance
The following forward-looking statements reflect our
expectations for the first quarter of 2021 as of February 4, 2021,
and are subject to substantial uncertainty. This guidance assumes
constant foreign currency rates, and among other things, that no
business acquisitions, investments, restructurings, or legal
settlements are concluded in the quarter. Our results are based on
assumptions that we believe to be reasonable as of this date, but
may be materially affected by many factors, as discussed below in
“Forward-Looking Statements.”
Q1 2021 Outlook
- Revenue is estimated to be between $720 million and $740
million, compared to $462 million in Q1 2020.
- Adjusted EBITDA is estimated to be between $(70) and $(50)
million, compared to $(81) million in Q1 2020.
Conference Call Information
Snap Inc. will host a conference call to discuss the results at
2:00 p.m. Pacific / 5:00 p.m. Eastern today. The live audio webcast
along with supplemental information will be accessible at
investor.snap.com. A recording of the webcast will also be
available following the conference call.
Snap Inc. uses the investor.snap.com and snap.com/news websites
as means of disclosing material non-public information and for
complying with its disclosure obligation under Regulation FD.
Definitions
Free Cash Flow is defined as net cash provided by (used in)
operating activities, reduced by purchases of property and
equipment.
Common shares outstanding plus shares underlying stock-based
awards includes common shares outstanding, restricted stock units,
restricted stock awards, and outstanding stock options.
Adjusted EBITDA is defined as net income (loss), excluding
interest income; interest expense; other income (expense) net;
income tax benefit (expense); depreciation and amortization;
stock-based compensation expense and related payroll tax expense;
and certain other non-cash or non-recurring items impacting net
income (loss) from time to time.
A Daily Active User (DAU) is defined as a registered Snapchat
user who opens the Snapchat application at least once during a
defined 24-hour period. We calculate average DAUs for a particular
quarter by adding the number of DAUs on each day of that quarter
and dividing that sum by the number of days in that quarter.
Average revenue per user (ARPU) is defined as quarterly revenue
divided by the average DAUs.
A Monthly Active User (MAU) is defined as a registered Snapchat
user who opens the Snapchat application at least once during the
30-day period ending on the calendar month-end. We calculate
average Monthly Active Users for a particular quarter by
calculating the average of the MAUs as of each calendar month-end
in that quarter.
Note: For adjustments and additional information regarding the
non-GAAP financial measures and other items discussed, please see
“Non-GAAP Financial Measures,” “Reconciliation of GAAP to Non-GAAP
Financial Measures,” and “Supplemental Financial Information and
Business Metrics.”
About Snap Inc.
Snap Inc. is a camera company. We believe that reinventing the
camera represents our greatest opportunity to improve the way
people live and communicate. We contribute to human progress by
empowering people to express themselves, live in the moment, learn
about the world, and have fun together. For more information, visit
snap.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, or the Securities Act, and Section 21E of the Securities
Exchange Act of 1934, as amended, or the Exchange Act, about us and
our industry that involve substantial risks and uncertainties. All
statements other than statements of historical facts contained in
this press release, including statements regarding guidance, our
future results of operations or financial condition, business
strategy and plans, user growth and engagement, product
initiatives, and objectives of management for future operations,
and the impact of COVID-19 on our business and the economy as a
whole, are forward-looking statements. In some cases, you can
identify forward-looking statements because they contain words such
as “anticipate,” “believe,” “contemplate,” “continue,” “could,”
“estimate,” “expect,” “going to,” “intend,” “may,” “plan,”
“potential,” “predict,” “project,” “should,” “target,” “will,” or
“would” or the negative of these words or other similar terms or
expressions. We caution you that the foregoing may not include all
of the forward-looking statements made in this press release.
You should not rely on forward-looking statements as predictions
of future events. We have based the forward-looking statements
contained in this press release primarily on our current
expectations and projections about future events and trends,
including the ongoing COVID-19 pandemic that we believe may
continue to affect our business, financial condition, results of
operations, and prospects. These forward-looking statements are
subject to risks and uncertainties related to: our financial
performance; our lack of profitability to date; our ability to
generate and sustain positive cash flow; our ability to attract and
retain users, publishers, and advertisers; competition and new
market entrants; managing our international expansion and our
growth and future expenses; compliance with new laws, regulations,
and executive actions; our ability to maintain, protect, and
enhance our intellectual property; our ability to succeed in
existing and new market segments; our ability to attract and retain
qualified and key personnel; our ability to repay outstanding debt;
and future acquisitions or investments, as well as risks,
uncertainties, and other factors described in “Risk Factors” and
elsewhere in our most recent quarterly report on Form 10-Q for the
quarter ended September 30, 2020 filed with the SEC, which is
available on the SEC’s website at www.sec.gov. Additional
information will be made available in Snap Inc.’s annual report on
Form 10-K for the year ended December 31, 2020 and other filings
that we make from time to time with the SEC. In addition, any
forward-looking statements contained in this press release are
based on assumptions that we believe to be reasonable as of this
date. We undertake no obligation to update any forward-looking
statements to reflect events or circumstances after the date of
this press release or to reflect new information or the occurrence
of unanticipated events, including future developments related to
the COVID-19 pandemic, except as required by law.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with GAAP, we use certain
non-GAAP financial measures, as described below, to understand and
evaluate our core operating performance. These non-GAAP financial
measures, which may be different than similarly titled measures
used by other companies, are presented to enhance investors’
overall understanding of our financial performance and should not
be considered a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP.
We use the non-GAAP financial measure of Free Cash Flow, which
is defined as net cash provided by (used in) operating activities,
reduced by purchases of property and equipment. We believe Free
Cash Flow is an important liquidity measure of the cash that is
available, after capital expenditures, for operational expenses and
investment in our business and is a key financial indicator used by
management. Additionally, we believe that Free Cash Flow is an
important measure since we use third-party infrastructure partners
to host our services and therefore we do not incur significant
capital expenditures to support revenue generating activities. Free
Cash Flow is useful to investors as a liquidity measure because it
measures our ability to generate or use cash. Once our business
needs and obligations are met, cash can be used to maintain a
strong balance sheet and invest in future growth.
We use the non-GAAP financial measure of Adjusted EBITDA, which
is defined as net income (loss); excluding interest income;
interest expense; other income (expense), net; income tax benefit
(expense); depreciation and amortization; stock-based compensation
expense and related payroll tax expense; and certain other non-cash
or non-recurring items impacting net income (loss) from time to
time. We believe that Adjusted EBITDA helps identify underlying
trends in our business that could otherwise be masked by the effect
of the expenses that we exclude in Adjusted EBITDA.
We use the non-GAAP financial measure of non-GAAP net loss,
which is defined as net income (loss); excluding amortization of
intangible assets; stock-based compensation expense and related
payroll tax expense; certain other non-cash or non-recurring items
impacting net income (loss) from time to time; and related income
tax adjustments. Non-GAAP net loss and weighted average diluted
shares are then used to calculate non-GAAP diluted net loss per
share. Similar to Adjusted EBITDA, we believe these measures help
identify underlying trends in our business that could otherwise be
masked by the effect of the expenses we exclude in the measure.
We believe that these non-GAAP financial measures provide useful
information about our financial performance, enhance the overall
understanding of our past performance and future prospects, and
allow for greater transparency with respect to key metrics used by
our management for financial and operational decision-making. We
are presenting these non-GAAP measures to assist investors in
seeing our financial performance through the eyes of management,
and because we believe that these measures provide an additional
tool for investors to use in comparing our core financial
performance over multiple periods with other companies in our
industry.
For a reconciliation of these non-GAAP financial measures to the
most directly comparable GAAP financial measure, please see
“Reconciliation of GAAP to Non-GAAP Financial Measures.”
Snap Inc., “Snapchat,” and our other registered and common law
trade names, trademarks, and service marks are the property of Snap
Inc. or our subsidiaries.
SNAP INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands, unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Cash flows from operating
activities
Net loss
$
(113,099
)
$
(240,704
)
$
(944,839
)
$
(1,033,660
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
22,811
20,620
86,744
87,245
Stock-based compensation
219,882
166,655
770,182
686,013
Deferred income taxes
(2,628
)
(686
)
(6,326
)
(491
)
Gain on divestiture
—
—
—
(39,883
)
Amortization of debt discount and issuance
costs
24,923
11,385
81,401
17,797
Other
(16,330
)
(24,014
)
(961
)
(28,575
)
Change in operating assets and
liabilities, net of effect of acquisitions:
Accounts receivable, net of allowance
(212,508
)
(117,126
)
(255,818
)
(147,862
)
Prepaid expenses and other current
assets
4,765
(4,869
)
(14,587
)
(9,849
)
Operating lease right-of-use assets
10,633
945
38,940
58,199
Other assets
(13,785
)
(3,371
)
(11,442
)
1,169
Accounts payable
8,926
(7,645
)
20,374
20,674
Accrued expenses and other current
liabilities
14,233
129,408
108,601
146,063
Operating lease liabilities
(8,991
)
2,415
(49,730
)
(60,844
)
Other liabilities
8,623
145
9,817
(954
)
Net cash used in operating activities
(52,545
)
(66,842
)
(167,644
)
(304,958
)
Cash flows from investing
activities
Purchases of property and equipment
(16,447
)
(9,093
)
(57,832
)
(36,478
)
Proceeds from divestiture, net
—
—
—
73,796
Cash paid for acquisitions, net of cash
acquired
(115,138
)
(77,119
)
(168,850
)
(77,119
)
Non-marketable investments
(16,245
)
(1,731
)
(111,586
)
(5,481
)
Purchases of marketable securities
(947,707
)
(552,990
)
(3,524,599
)
(2,477,388
)
Sales of marketable securities
16,117
81,742
389,974
184,179
Maturities of marketable securities
839,347
415,115
2,737,523
1,608,854
Other
6,006
—
5,506
1,029
Net cash used in investing activities
(234,067
)
(144,076
)
(729,864
)
(728,608
)
Cash flows from financing
activities
Proceeds from issuance of convertible
notes, net of issuance costs
—
(437
)
988,582
1,251,411
Purchase of capped calls
—
—
(100,000
)
(102,086
)
Proceeds from the exercise of stock
options
8,168
1,801
34,209
16,527
Net cash provided by financing
activities
8,168
1,364
922,791
1,165,852
Change in cash, cash equivalents, and
restricted cash
(278,444
)
(209,554
)
25,283
132,286
Cash, cash equivalents, and restricted
cash, beginning of period
824,987
730,814
521,260
388,974
Cash, cash equivalents, and restricted
cash, end of period
546,543
$
521,260
546,543
$
521,260
Supplemental disclosures
Cash paid for income taxes, net
$
1,013
$
56
$
3,692
$
156
Cash paid for interest
$
1,641
$
370
$
12,019
$
1,546
Supplemental disclosures of non-cash
activities
Net change in accounts payable and accrued
expenses and other current liabilities related to property and
equipment additions
$
1,584
$
951
$
2,732
$
(6,027
)
SNAP INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per share
amounts, unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Revenue
$
911,322
$
560,888
$
2,506,626
$
1,715,534
Costs and expenses:
Cost of revenue
385,546
253,439
1,182,505
895,838
Research and development
318,446
219,526
1,101,561
883,509
Sales and marketing
157,634
125,972
555,468
458,598
General and administrative
146,932
215,547
529,164
580,917
Total costs and expenses
1,008,558
814,484
3,368,698
2,818,862
Operating loss
(97,236
)
(253,596
)
(862,072
)
(1,103,328
)
Interest income
1,969
10,463
18,127
36,042
Interest expense
(29,176
)
(14,775
)
(97,228
)
(24,994
)
Other income (expense), net
29,471
17,536
14,988
59,013
Loss before income taxes
(94,972
)
(240,372
)
(926,185
)
(1,033,267
)
Income tax benefit (expense)
(18,127
)
(332
)
(18,654
)
(393
)
Net loss
$
(113,099
)
$
(240,704
)
$
(944,839
)
$
(1,033,660
)
Net loss per share attributable to Class
A, Class B, and Class C common stockholders:
Basic
$
(0.08
)
$
(0.17
)
$
(0.65
)
$
(0.75
)
Diluted
$
(0.08
)
$
(0.17
)
$
(0.65
)
$
(0.75
)
Weighted average shares used in
computation of net loss per share:
Basic
1,484,277
1,409,519
1,455,693
1,375,462
Diluted
1,484,277
1,409,519
1,455,693
1,375,462
SNAP INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except par
value)
December 31,
2020
September 30,
2020
December 31, 2019
(unaudited)
(unaudited)
Assets
Current assets
Cash and cash equivalents
$
545,618
$
824,070
$
520,317
Marketable securities
1,991,922
1,900,935
1,592,488
Accounts receivable, net of allowance
744,288
529,872
492,194
Prepaid expenses and other current
assets
56,147
60,837
38,987
Total current assets
3,337,975
3,315,714
2,643,986
Property and equipment, net
178,709
175,199
173,667
Operating lease right-of-use assets
269,728
269,141
275,447
Intangible assets, net
105,929
91,796
92,121
Goodwill
939,259
816,113
761,153
Other assets
192,638
149,811
65,550
Total assets
$
5,024,238
$
4,817,774
$
4,011,924
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
71,908
$
61,978
$
46,886
Operating lease liabilities
41,077
40,994
42,179
Accrued expenses and other current
liabilities
554,342
507,134
410,610
Total current liabilities
667,327
610,106
499,675
Convertible senior notes, net
1,675,169
1,650,246
891,776
Operating lease liabilities,
noncurrent
287,292
287,105
303,178
Other liabilities
64,474
71,546
57,382
Total liabilities
2,694,262
2,619,003
1,752,011
Commitments and contingencies
Stockholders’ equity
Class A non-voting common stock, $0.00001
par value. 3,000,000 shares authorized, 1,248,010, 1,229,446, and
1,160,127 shares issued and outstanding at December 31, 2020,
September 30, 2020, and December 31, 2019, respectively.
12
12
12
Class B voting common stock, $0.00001 par
value. 700,000 shares authorized, 23,696, 23,643, and 24,522 shares
issued and outstanding at December 31, 2020, September 30, 2020,
and December 31, 2019, respectively.
—
—
-
Class C voting common stock, $0.00001 par
value. 260,888 shares authorized, 231,627, 231,627, and 231,147
shares issued and outstanding at December 31, 2020, September 30,
2020, and December 31, 2019, respectively.
2
2
2
Additional paid-in capital
10,200,141
9,968,707
9,205,256
Accumulated other comprehensive income
(loss)
21,363
8,499
573
Accumulated deficit
(7,891,542
)
(7,778,449
)
(6,945,930
)
Total stockholders’ equity
2,329,976
2,198,771
2,259,913
Total liabilities and stockholders’
equity
$
5,024,238
$
4,817,774
$
4,011,924
SNAP INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(in thousands, unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Free Cash Flow reconciliation:
Net cash used in operating activities
$
(52,545
)
$
(66,842
)
$
(167,644
)
$
(304,958
)
Less:
Purchases of property and equipment
(16,447
)
(9,093
)
(57,832
)
(36,478
)
Free Cash Flow
$
(68,992
)
$
(75,935
)
$
(225,476
)
$
(341,436
)
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Adjusted EBITDA reconciliation:
Net loss
$
(113,099
)
$
(240,704
)
$
(944,839
)
$
(1,033,660
)
Add (deduct):
Interest income
(1,969
)
(10,463
)
(18,127
)
(36,042
)
Interest expense
29,176
14,775
97,228
24,994
Other (income) expense, net
(29,471
)
(17,536
)
(14,988
)
(59,013
)
Income tax (benefit) expense
18,127
332
18,654
393
Depreciation and amortization
22,811
20,620
86,744
87,245
Stock-based compensation expense
219,882
166,655
770,182
686,013
Payroll tax expense related to stock-based
compensation
20,152
8,628
50,309
27,840
Securities class actions legal
charges(1)
—
100,000
—
100,000
Adjusted EBITDA
$
165,609
$
42,307
$
45,163
$
(202,230
)
(1)
Securities class actions legal charges in
the fourth quarter of 2019 were related to a preliminary agreement
to settle the securities class actions that arose following our
IPO. The preliminary settlement agreement was signed in January
2020 and provided for a resolution of all of the pending claims in
the shareholder class actions for $187.5 million. We recorded legal
settlement expense, net of amounts directly covered by insurance,
of $100.0 million. These charges are non-recurring and not
reflective of underlying trends in our business. The settlement
amount of $98 million was paid in December 2020.
Total depreciation and amortization expense by function:
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Depreciation and amortization expense:
Cost of revenue
$
5,533
$
4,903
$
22,205
$
21,271
Research and development
10,723
8,738
37,627
33,208
Sales and marketing
3,136
3,087
12,916
13,256
General and administrative
3,419
3,892
13,996
19,510
Total
$
22,811
$
20,620
$
86,744
$
87,245
SNAP INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES (continued)
(in thousands, except per share
amounts, unaudited)
Total stock-based compensation
expense by function:
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Stock-based compensation expense:
Cost of revenue
$
2,896
$
1,398
$
9,367
$
6,365
Research and development
155,436
111,611
533,272
464,639
Sales and marketing
28,964
25,788
108,270
93,355
General and administrative
32,586
27,858
119,273
121,654
Total
$
219,882
$
166,655
$
770,182
$
686,013
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Non-GAAP net income (loss)
reconciliation:
Net loss
$
(113,099
)
$
(240,704
)
$
(944,839
)
$
(1,033,660
)
Amortization of intangible assets
9,727
7,067
33,507
33,399
Stock-based compensation expense
219,882
166,655
770,182
686,013
Payroll tax expense related to stock-based
compensation
20,152
8,628
50,309
27,840
Securities class actions legal charges
—
100,000
—
100,000
Gain on divestiture
—
—
—
(39,883
)
Income tax adjustments
(511
)
289
(96
)
750
Non-GAAP net income (loss)
$
136,151
$
41,935
$
(90,937
)
$
(225,541
)
Weighted-average common shares -
Diluted
1,484,277
1,409,519
1,455,693
1,375,462
Non-GAAP diluted net income (loss) per
share reconciliation:
Diluted net loss per share
$
(0.08
)
$
(0.17
)
$
(0.65
)
$
(0.75
)
Non-GAAP adjustment to net loss
0.17
0.20
0.59
0.59
Non-GAAP diluted net income (loss) per
share
$
0.09
$
0.03
$
(0.06
)
$
(0.16
)
SNAP INC.
SUPPLEMENTAL FINANCIAL
INFORMATION AND BUSINESS METRICS
(dollars and shares in thousands,
except per user amounts below, unaudited)
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Cash Flows and Shares
Net cash provided by (used in) operating
activities
$
(76,149
)
$
(66,842
)
$
6,283
$
(66,554
)
$
(54,828
)
$
(52,545
)
Net cash provided by (used in) operating
activities - YoY (year-over-year)
43
%
(47
)%
109
%
31
%
28
%
21
%
Net cash provided by (used in) operating
activities - TTM (trailing twelve months)
$
(364,170
)
$
(304,958
)
$
(232,497
)
$
(203,262
)
$
(181,941
)
$
(167,644
)
Purchases of property and equipment
$
(7,938
)
$
(9,093
)
$
(10,891
)
$
(15,767
)
$
(14,727
)
$
(16,447
)
Purchases of property and equipment -
YoY
(70
)%
(60
)%
(8
)%
107
%
86
%
81
%
Purchases of property and equipment -
TTM
$
(50,126
)
$
(36,478
)
$
(35,555
)
$
(43,689
)
$
(50,478
)
$
(57,832
)
Free Cash Flow
$
(84,087
)
$
(75,935
)
$
(4,608
)
$
(82,321
)
$
(69,555
)
$
(68,992
)
Free Cash Flow - YoY
47
%
49
%
94
%
20
%
17
%
9
%
Free Cash Flow - TTM
$
(414,296
)
$
(341,436
)
$
(268,052
)
$
(246,951
)
$
(232,419
)
$
(225,476
)
Common shares outstanding
1,389,395
1,415,796
1,439,589
1,463,620
1,484,716
1,503,333
Common shares outstanding - YoY
8
%
7
%
8
%
7
%
7
%
6
%
Shares underlying stock-based awards
175,813
160,239
149,004
152,526
138,914
126,287
Shares underlying stock-based awards -
YoY
(5
)%
(15
)%
(29
)%
(16
)%
(21
)%
(21
)%
Total common shares outstanding plus
shares underlying stock-based awards
1,565,208
1,576,035
1,588,593
1,616,146
1,623,630
1,629,620
Total common shares outstanding plus
shares underlying stock-based awards - YoY
6
%
5
%
3
%
4
%
4
%
3
%
Results of Operations
Revenue
$
446,199
$
560,889
$
462,478
$
454,158
$
678,668
$
911,322
Revenue - YoY
50
%
44
%
44
%
17
%
52
%
62
%
Revenue - TTM
$
1,544,468
$
1,715,535
$
1,857,586
$
1,923,723
$
2,156,192
$
2,506,626
Revenue by region(1)
North America
$
316,028
$
382,029
$
315,650
$
306,740
$
492,928
$
659,163
North America - YoY
52
%
42
%
40
%
18
%
56
%
73
%
North America - TTM
$
1,070,608
$
1,183,779
$
1,273,724
$
1,320,447
$
1,497,347
$
1,774,481
Europe
$
68,553
$
91,873
$
76,498
$
78,635
$
102,480
$
141,608
Europe - YoY
36
%
47
%
61
%
30
%
49
%
54
%
Europe - TTM
$
239,104
$
268,507
$
297,557
$
315,559
$
349,486
$
399,221
Rest of World
$
61,618
$
86,987
$
70,330
$
68,783
$
83,260
$
110,551
Rest of World - YoY
55
%
49
%
49
%
2
%
35
%
27
%
Rest of World - TTM
$
234,760
$
263,252
$
286,308
$
287,717
$
309,359
$
332,924
Operating loss
$
(228,853
)
$
(253,596
)
$
(286,364
)
$
(310,608
)
$
(167,864
)
$
(97,236
)
Operating loss - YoY
(29
)%
30
%
(9
)%
2
%
(27
)%
(62
)%
Operating loss - Margin
(51
)%
(45
)%
(62
)%
(68
)%
(25
)%
(11
)%
Operating loss - TTM
$
(1,044,439
)
$
(1,103,328
)
$
(1,073,631
)
$
(1,079,421
)
$
(1,018,432
)
$
(862,072
)
Net loss
$
(227,375
)
$
(240,704
)
$
(305,936
)
$
(325,951
)
$
(199,853
)
$
(113,099
)
Net loss - YoY
(30
)%
26
%
(1
)%
28
%
(12
)%
(53
)%
Net loss - TTM
$
(984,624
)
$
(1,033,660
)
$
(1,029,189
)
$
(1,099,966
)
$
(1,072,444
)
$
(944,839
)
Adjusted EBITDA
(42,375
)
42,307
(81,237
)
(95,570
)
56,361
165,609
Adjusted EBITDA - YoY
69
%
184
%
34
%
(21
)%
233
%
291
%
Adjusted EBITDA - Margin(2)
(9
)%
8
%
(18
)%
(21
)%
8
%
18
%
Adjusted EBITDA - TTM
$
(294,900
)
$
(202,230
)
$
(160,018
)
$
(176,875
)
$
(78,139
)
$
45,163
(1)
Total revenue for geographic reporting is
apportioned to each region based on our determination of the
geographic location in which advertising impressions are delivered,
as this approximates revenue based on user activity. This
allocation is consistent with how we determine ARPU.
(2)
We define Adjusted EBITDA margin as
Adjusted EBITDA divided by GAAP revenue.
SNAP INC.
SUPPLEMENTAL FINANCIAL
INFORMATION AND BUSINESS METRICS (continued)
(dollars and shares in thousands,
except per user amounts below, unaudited)
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Other
DAU (in millions)
210
218
229
238
249
265
DAU - YoY
13
%
17
%
20
%
17
%
18
%
22
%
DAU by region (in millions)
North America
84
86
88
90
90
92
North America - YoY
6
%
9
%
10
%
9
%
7
%
6
%
Europe
65
67
70
71
72
74
Europe - YoY
9
%
12
%
14
%
12
%
10
%
10
%
Rest of World
61
64
71
77
87
99
Rest of World - YoY
28
%
36
%
45
%
37
%
43
%
55
%
ARPU
$
2.12
$
2.58
$
2.02
$
1.91
$
2.73
$
3.44
ARPU - YoY
33
%
23
%
20
%
—
28
%
33
%
ARPU by region
North America
$
3.75
$
4.42
$
3.57
$
3.40
$
5.49
$
7.19
North America - YoY
43
%
31
%
27
%
8
%
46
%
63
%
Europe
$
1.05
$
1.37
$
1.09
$
1.10
$
1.43
$
1.91
Europe - YoY
24
%
31
%
41
%
16
%
36
%
39
%
Rest of World
$
1.01
$
1.35
$
1.00
$
0.89
$
0.95
$
1.11
Rest of World - YoY
21
%
9
%
3
%
(26
)%
(6
)%
(18
)%
Employees (full-time; excludes part-time,
contractors, and temporary personnel)
2,908
3,195
3,427
3,550
3,713
3,863
Employees - YoY
0
%
11
%
22
%
30
%
28
%
21
%
Depreciation and amortization
expense
Cost of revenue
$
4,580
$
4,903
$
5,525
$
5,532
$
5,615
$
5,533
Research and development
8,632
8,738
8,915
8,463
9,526
10,723
Sales and marketing
3,109
3,087
3,166
3,381
3,233
3,136
General and administrative
4,325
3,892
3,598
3,549
3,430
3,419
Total
$
20,646
$
20,620
$
21,204
$
20,925
$
21,804
$
22,811
Depreciation and amortization expense -
YoY
(17
)%
(9
)%
(9
)%
(8
)%
6
%
11
%
Stock-based compensation
expense
Cost of revenue
$
1,332
$
1,398
$
1,782
$
2,066
$
2,623
$
2,896
Research and development
108,176
111,611
118,317
127,516
132,003
155,436
Sales and marketing
23,333
25,788
24,806
27,107
27,393
28,964
General and administrative
28,387
27,858
27,144
29,482
30,061
32,586
Total
$
161,228
$
166,655
$
172,049
$
186,171
$
192,080
$
219,882
Stock-based compensation expense - YoY
27
%
37
%
6
%
(5
)%
19
%
32
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210204006019/en/
Investors and Analysts: ir@snap.com
Press: press@snap.com
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