Snap Inc. (NYSE: SNAP) today announced financial results for the
quarter ended June 30, 2018.
Financial Highlights
Cash used in operating activities was $(199) million in Q2 2018,
compared to cash used in operating activities of $(210) million in
Q2 2017.
Free Cash Flow was $(234) million in Q2 2018, compared to $(229)
million in Q2 2017.
Common shares outstanding plus shares underlying stock-based
awards totaled 1.5 billion at June 30, 2018, compared with 1.4
billion one year ago.
Revenue increased 44% to $262 million in Q2 2018, compared to
revenue of $182 million in Q2 2017.
Net loss decreased 20% to $(353) million in Q2 2018, compared to
a net loss of $(443) million in Q2 2017.
Adjusted EBITDA loss decreased 13% to $(169) million in Q2 2018,
compared to an Adjusted EBITDA loss of $(194) million in Q2
2017.
“We are excited by the progress we have been making and are
optimistic about the opportunities ahead as we continue to invest
in innovation,” said Evan Spiegel, Snap CEO and Co-Founder.
Three Months Ended June 30, Percent
Six Months Ended June 30, Percent
2018 2017 Change 2018
2017 Change (Unaudited)
(dollars in thousands)
(dollars in thousands) Cash used in operating
activities $ (199,346 ) $ (209,574 ) 5 % $ (431,327 ) $ (364,571 )
(18 )% Free Cash Flow $ (234,247 ) $ (228,939 ) (2 )% $ (502,543 )
$ (401,929 ) (25 )% Common shares outstanding plus shares
underlying stock-based awards 1,478,758 1,434,346 3 % 1,478,758
1,434,346 3 % Revenue $ 262,263 $ 181,671 44 % $ 492,929 $ 331,319
49 % Net loss $ (353,310 ) $ (443,093 ) (20 )% $ (739,095 ) $
(2,651,930 ) (72 )% Adjusted EBITDA $ (169,032 ) $ (193,990 ) 13 %
$ (386,897 ) $ (382,233 ) (1 )%
Business Highlights
- Daily Active Users (DAU) increased 8%
to 188 million in Q2 2018, compared to 173 million in Q2 2017, and
decreased 2% in Q2 2018, compared to 191 million in Q1 2018.
- Average revenue per user (ARPU)
increased 34% to $1.40 in Q2 2018, compared to $1.05 in Q2
2017.
- In Q2 2018, 11 Shows reached a monthly
audience of over 10 million users, up from 7 in Q1 2018.
- We introduced Group Video Chat, which
allows users to video chat with up to 16 friends at one time.
- We launched Snappables, new Lenses for
sharing augmented reality experiences with one or many friends.
Users can control Snappables using touch, motion, and facial
expressions.
- We released a new version of
Spectacles, which has a smaller profile and is water resistant.
Users can record videos with improved audio as well as press and
hold to take a photo. Snaps captured transfer to Snapchat in HD up
to 4 times faster than the original version of Spectacles.
- We introduced Snap Kit
(kit.snapchat.com) to help developers build products powered by
features of Snapchat. We have partnered with companies such as
Pandora and Tinder to make it possible for Snapchat features to be
shared within each of their platforms and on Snapchat.
- Creative Kit helps developers integrate
their own stickers, filters, links, and other highlights right into
the Snapchat camera.
- Login Kit lets users unlock new
features on Snapchat and other apps, or use their Snapchat account
as a quick, secondary way to log in.
- Bitmoji Kit lets conversations come
alive with Bitmoji stickers when messaging on other apps.
- Story Kit lets developers filter and
embed publicly shared Snapchat Stories into their own apps and
services.
- We introduced Lens Explorer, an easier
way to discover and unlock thousands of Lenses built by Snapchat
users around the world. Since we launched Lens Studio in late 2017,
creators have submitted over 100,000 unique Lenses which have been
viewed by Snapchat users over 3.5 billion times.
Advertising Highlights
- We transitioned our Story Ad product
from our managed ecosystem to our programmatic auction.
- Snap Pixel, which helps advertisers
measure the cross-device impact of their campaigns, is now
available to all advertisers, regardless of size. Since beta launch
in Q4 2017, Snap Pixel has measured more than 100 million purchase
events, 70 million of which were recorded in Q2 2018 alone as we
released Snap Pixel globally.
- We introduced updates to our self-serve
platform to provide performance-focused advertisers with a
full-suite of tools needed to optimize and measure their Snapchat
campaigns. These updates include the ability to bid on goals such
as web conversions, return on ad spend reporting, and conversion
lift capabilities, effectively rounding out our Snap Pixel
offering.
- We announced that advertisers can
purchase Lens campaigns using our Reach & Frequency tool in Ads
Manager. This means that all of our advertising formats – Snap Ads
(including Story Ads) and Creative Tools (Lenses and Filters) – are
now available programmatically.
- We launched two new initiatives to help
our content creators monetize via our programmatic marketplace. We
brought Commercials, a non-skippable 6-second Snap Ad that appears
in Discover Shows, to Ads Manager. We also launched our Private
Marketplace, which is an invite-only tool within Ads Manager that
publishers can use to allow specific advertisers to target their
content.
- We’ve provided more insights to
advertisers by launching three new initiatives for campaign
planning and analysis. Audience Insights help advertisers
understand characteristics about Snap’s audience, which they can
now better target with our Advanced Location Targeting, including
location categories and point + radius, and then better understand
their performance with Delivery Insights.
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,
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 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 Daily Active Users 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.
ARPU is defined as quarterly revenue divided by the average
Daily Active Users.
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.”
Financial Guidance
The following forward-looking statements reflect our
expectations for the third quarter of 2018 as of August 7, 2018,
and are subject to substantial uncertainty. This guidance assumes,
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.”
Q3 2018 Outlook
- Revenue is expected to be between $265
million and $290 million, growth of between 27% and 39% compared to
Q3 2017.
- Adjusted EBITDA loss is expected to be
between $(185) million and $(160) million, compared to $(179)
million in Q3 2017.
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.
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 that
are based on our management’s beliefs and assumptions and on
information currently available to management. Forward-looking
statements include statements about guidance or expected financial
metrics, such as revenue, non-GAAP Adjusted EBITDA, capital
expenditures, and stock-based compensation, as well as
non-financial metrics, such as DAU, MAU, and video views. They also
include statements about our possible or assumed business
strategies, potential growth opportunities, new products, and
potential market opportunities.
Forward-looking statements include all statements that are not
historical facts and can be identified by terms such as “believe,”
“could,” “expect,” “potential,” “will,” “would” or similar
expressions and the negatives of those terms. Forward-looking
statements involve known and unknown risks, uncertainties, and
other factors that may cause our actual results, performance, or
achievements to be materially different from any future results,
performance, or achievements expressed or implied by the
forward-looking statements. These risks include, but are not
limited to, risks and uncertainties related to: our limited
operating history, our lack of profitability to date, changes to
our business model, our ability to monetize our products, the
highly competitive and rapidly changing market for internet and
advertising companies, user reception of changes to existing
products, infrastructure costs, our ability to create new and
innovative products, our ability to maintain users and manage any
future user growth, litigation, and our international expansion
strategies. Additional risks and uncertainties that could affect
our financial results are included in the section titled “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in our quarterly report on
Form 10-Q for the quarter ended March 31, 2018, which is available
on the SEC’s website at www.sec.gov. Additional information will be
made available in Snap Inc.’s quarterly report on Form 10-Q for the
quarter ended June 30, 2018 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. Except as
required by law, we assume no obligation to update these
forward-looking statements, or to update the reasons if actual
results differ materially from those anticipated in the
forward-looking statements.
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 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 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 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 June 30, Six Months
Ended June 30, 2018 2017 2018
2017 Cash flows from operating activities Net
loss $ (353,310 ) $ (443,093 ) $ (739,095 ) $ (2,651,930 )
Adjustments to reconcile net loss to net cash used in operating
activities:
Depreciation and amortization 22,514 12,585 44,068 25,035
Stock-based compensation 156,371 245,028 289,630 2,237,149 Deferred
income taxes 17 (277 ) 253 (1,765 ) Other (5,893 ) (3,564 ) (9,287
) (1,672 ) Change in operating assets and liabilities, net of
effect of
acquisitions:
Accounts receivable, net of allowance (13,926 ) (21,653 ) 34,771
(8,209 ) Prepaid expenses and other current assets 7,815 (4,399 )
(2,624 ) (47,835 ) Other assets 9,021 (12,823 ) 13,225 (10,108 )
Accounts payable (9,653 ) 3,698 (46,722 ) 9,317 Accrued expenses
and other current liabilities (19,356 ) 12,986 (29,505 ) 82,190
Other liabilities 7,054 1,938 13,959
3,257 Net cash used in operating activities (199,346 )
(209,574 ) (431,327 ) (364,571 )
Cash flows
from investing activities Purchases of property and equipment
(34,901 ) (19,365 ) (71,216 ) (37,358 ) Purchases of intangible
assets (2,505 ) (7,720 ) (2,565 ) (7,720 ) Non-marketable
investments (21,010 ) (6,905 ) (21,010 ) (7,530 ) Cash paid for
acquisitions, net of cash acquired — (206,163 ) — (224,176 )
Purchases of marketable securities (396,885 ) (1,319,156 ) (874,098
) (2,742,370 ) Sales of marketable securities — 237,095 45,007
237,095 Maturities of marketable securities 578,509
602,432 1,366,337 1,047,479 Net cash provided by
(used in) investing activities 123,208 (719,782 )
442,455 (1,734,580 )
Cash flows from financing
activities Proceeds from the exercise of stock options 1,914
189 47,723 783 Stock repurchases from employees for tax
withholdings — (1,828 ) (551 ) (208,407 ) Proceeds from issuance of
Class A common stock in initial public offering, net of
underwriting commissions — — — 2,657,797 Payments of initial public
offering issuance costs — (4,341 ) —
(9,365 ) Net cash provided by (used in) financing activities
1,914 (5,980 ) 47,172 2,440,808 Change in
cash, cash equivalents, and restricted cash (74,224 ) (935,336 )
58,300 341,657 Cash, cash equivalents, and restricted cash,
beginning of period 469,531 1,440,329 337,007
163,336 Cash, cash equivalents, and restricted cash, end of
period $ 395,307 $ 504,993 $ 395,307 $ 504,993
Supplemental
disclosures Cash paid for income taxes $ 1,406 $ 1,945 $ 2,397
$ 5,490
Supplemental disclosures of non-cash activities
Purchase consideration liabilities related to acquisitions $ — $
9,341 $ — $ 11,242 Construction in progress related to financing
lease obligations $ 431 $ 426 $ 856 $ 683 Net change in accounts
payable and accrued expenses and other
current liabilities related to property
and equipment additions
$ 143 $ 612 $ 588 $ (3,743 )
SNAP INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except per share amounts,
unaudited)
Three Months Ended June 30, Six Months
Ended June 30, 2018 2017 2018
2017 Revenue $ 262,263 $ 181,671 $ 492,929 $
331,319 Costs and expenses: Cost of revenue 191,565 152,148 388,363
315,506 Research and development 203,246 255,735 404,232 1,061,583
Sales and marketing 101,685 90,903 203,798 310,636 General and
administrative 123,609 131,903 246,908
1,306,379 Total costs and expenses 620,105 630,689
1,243,301 2,994,104 Loss from operations (357,842 )
(449,018 ) (750,372 ) (2,662,785 ) Interest income 6,600 6,349
12,704 8,773 Interest expense (930 ) (998 ) (1,864 ) (1,693 ) Other
income (expense), net (61 ) 786 3,092
973 Loss before income taxes (352,233 ) (442,881 ) (736,440 )
(2,654,732 ) Income tax benefit (expense) (1,077 )
(212 ) (2,655 ) 2,802 Net loss $ (353,310 ) $
(443,093 ) $ (739,095 ) $ (2,651,930 ) Net loss per share
attributable to Class A, Class B, and Class C common stockholders:
Basic $ (0.27 ) $ (0.36 ) $ (0.58 ) $ (2.43 ) Diluted $ (0.27 ) $
(0.36 ) $ (0.58 ) $ (2.43 )
SNAP INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share
amounts)
June 30,
2018
December 31,
2017
(Unaudited) Assets Current assets Cash and cash
equivalents $ 393,183 $ 334,063 Marketable securities 1,176,820
1,708,976 Accounts receivable, net of allowance 244,815 279,473
Prepaid expenses and other current assets 54,032
44,282 Total current assets 1,868,850 2,366,794 Property and
equipment, net 214,230 166,762 Intangible assets, net 147,197
166,473 Goodwill 635,482 639,882 Other assets 84,954
81,655 Total assets $ 2,950,713 $ 3,421,566
Liabilities and
Stockholders’ Equity Current liabilities Accounts payable $
22,644 $ 71,194 Accrued expenses and other current liabilities
256,698 275,062 Total current liabilities 279,342
346,256 Other liabilities 87,303 82,983 Total
liabilities 366,645 429,239 Commitments and
contingencies Stockholders’ equity Class A non-voting common stock,
$0.00001 par value. 3,000,000 shares
authorized, 958,801 shares issued and
outstanding at June 30, 2018,
and 3,000,000 shares authorized, 883,022
shares issued and outstanding
at December 31, 2017.
10 9 Class B voting common stock, $0.00001 par value. 700,000
shares
authorized, 94,471 shares issued and
outstanding at June 30, 2018,
and 700,000 shares authorized, 122,564
shares issued and outstanding
at December 31, 2017.
1 1 Class C voting common stock, $0.00001 par value. 260,888 shares
authorized, 219,891 shares issued and
outstanding at June 30, 2018,
and 260,888 shares authorized and 216,616
shares issued and outstanding
at December 31, 2017.
2 2 Additional paid-in capital 7,971,610 7,634,825 Accumulated
other comprehensive income (loss) 8,207 14,157 Accumulated deficit
(5,395,762 ) (4,656,667 ) Total stockholders’ equity
2,584,068 2,992,327 Total liabilities and
stockholders’ equity $ 2,950,713 $ 3,421,566
SNAP INC.
RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES
(In thousands, unaudited)
Three Months Ended June 30, Six Months
Ended June 30, 2018 2017 2018
2017 Adjusted EBITDA reconciliation: Net loss
$ (353,310 ) $ (443,093 ) $ (739,095 ) $ (2,651,930 ) Add (deduct):
Interest income (6,600 ) (6,349 ) (12,704 ) (8,773 ) Interest
expense 930 998 1,864 1,693 Other (income) expense, net 61 (786 )
(3,092 ) (973 ) Income tax (benefit) expense 1,077 212 2,655 (2,802
) Depreciation and amortization 22,514 12,585 44,068 25,035
Stock-based compensation expense 156,371 245,028 289,630 2,237,149
Payroll tax expense related to stock-based compensation 5,997
(2,585 ) 15,965 18,368 Reduction in force charges(1) — — 9,884 —
Lease exit charges(2) 3,928 — 3,928 —
Adjusted EBITDA $ (169,032 ) $ (193,990 ) $ (386,897 ) $ (382,233 )
Total depreciation and amortization
expense by function:
Three Months Ended June 30, Six Months Ended June 30,
2018 2017 2018 2017 Depreciation and
amortization expense: Cost of revenue $ 5,610 $ 2,970 $ 10,812 $
4,639 Research and development 9,489 5,983 18,280 11,738 Sales and
marketing 3,991 1,589 7,560 4,189 General and administrative
3,424 2,043 7,416 4,469 Total $ 22,514 $
12,585 $ 44,068 $ 25,035
Total stock-based compensation expense by
function:
Three Months Ended June 30, Six Months Ended June 30,
2018 2017 2018 2017 Stock-based
compensation expense: Cost of revenue $ 1,467 $ 2,223 $ 1,743 $
21,931 Research and development 92,303 163,848 170,118 881,928
Sales and marketing 21,996 20,558 38,182 180,284 General and
administrative 40,605 58,399 79,587
1,153,006 Total $ 156,371 $ 245,028 $ 289,630 $ 2,237,149
(1) Reduction in force charges during the first quarter of 2018
were related to a reduction in force plan we implemented during
March 2018, impacting approximately 7% of our global headcount,
primarily in engineering and sales. The charges are composed
primarily of severance expense and related payroll tax expense.
These charges are non-recurring and not reflective of underlying
trends in our business. Additionally, we recognized a stock-based
compensation forfeiture benefit of $31.5 million, which is included
in the stock-based compensation expense line item above.
(2) Lease exit charges were related to our exit of various
operating leases prior to the end of the contractual lease term,
primarily as a result of moving to a centralized corporate office
located in Santa Monica, California. We recorded a lease exit
charge of $3.9 million in the second quarter of 2018. The charge
reflects the present value of our remaining lease obligation on the
cease use dates that occurred during the quarter, net of sublease
income. We expect to incur total lease exit charges of
approximately $25 million to $45 million in 2018, primarily in the
third quarter, based on current exit plans. These charges are
non-recurring and not reflective of underlying trends in our
business.
SNAP INC.
RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES (continued)
(In thousands, except per share amounts,
unaudited)
Three Months Ended June 30, Six Months
Ended June 30, 2018 2017 2018
2017 Free Cash Flow reconciliation: Net cash
used in operating activities $ (199,346 ) $ (209,574 ) $ (431,327 )
$ (364,571 ) Less: Purchases of property and equipment
(34,901 ) (19,365 ) (71,216 ) (37,358 ) Free
Cash Flow $ (234,247 ) $ (228,939 ) $ (502,543 ) $ (401,929 )
Three Months Ended June 30, Six Months Ended June
30, 2018 2017 2018 2017 Non-GAAP
Net Loss reconciliation: Net loss $ (353,310 ) $ (443,093 ) $
(739,095 ) $ (2,651,930 ) Amortization of intangible assets 10,754
5,767 21,577 11,204 Stock-based compensation expense 156,371
245,028 289,630 2,237,149 Payroll tax expense related to
stock-based compensation 5,997 (2,585 ) 15,965 18,368 Reduction in
force charges — — 9,884 — Lease exit charges 3,928 — 3,928 — Income
tax adjustments (339 ) (623 ) (119 )
(2,190 ) Non-GAAP net loss $ (176,599 ) $ (195,506 ) $ (398,230 ) $
(387,399 ) Weighted-average common shares - Diluted
1,294,846 1,223,443 1,283,668 1,090,751
Non-GAAP Diluted
Net Loss Per Share reconciliation: Diluted net loss per share $
(0.27 ) $ (0.36 ) $ (0.58 ) $ (2.43 ) Non-GAAP adjustment to net
loss 0.13 0.20 0.27 2.08 Non-GAAP
diluted Net Loss per share $ (0.14 ) $ (0.16 ) $ (0.31 ) $ (0.36 )
SNAP INC.
SUPPLEMENTAL FINANCIAL INFORMATION AND
BUSINESS METRICS
(Dollars in thousands, except as noted
below, unaudited)
Q1 2017 Q2
2017 Q3 2017 Q4 2017 Q1 2018 Q2
2018 Cash Flows and Shares Net cash used in operating
activities $ (154,997 ) $ (209,574 ) $ (194,013 ) $ (176,083 ) $
(231,981 ) $ (199,346 ) Net cash used in operating activities - YoY
(year-over-year) (67 )% (56 )% 11 % (5 )% (50 )% 5 % Net cash used
in operating activities - TTM (trailing twelve months) $ (673,701 )
$ (749,165 ) $ (726,312 ) $ (734,667 ) $ (811,651 ) $ (801,423 )
Purchases of property and equipment $ (17,993 ) $ (19,365 ) $
(25,948 ) $ (21,212 ) $ (36,315 ) $ (34,901 ) Purchases of property
and equipment - YoY 44 % 18 % 51 % 4 % 102 % 80 % Purchases of
property and equipment - TTM $ (71,982 ) $ (74,926 ) $ (83,682 ) $
(84,518 ) $ (102,840 ) $ (118,376 ) Free Cash Flow $ (172,990 ) $
(228,939 ) $ (219,961 ) $ (197,295 ) $ (268,296 ) $ (234,247 ) Free
Cash Flow - YoY (65 )% (52 )% 6 % (5 )% (55 )% (2 )% Free Cash Flow
- TTM $ (745,683 ) $ (824,091 ) $ (809,994 ) $ (819,185 ) $
(914,491 ) $ (919,799 ) Common shares outstanding 1,178,850
1,180,002 1,201,736 1,222,202 1,254,439 1,273,163 Common shares
outstanding - YoY NM NM NM NM 6 % 8 % Shares underlying stock-based
awards 253,300 254,344 239,564 230,802 202,175 205,595 Shares
underlying stock-based awards - YoY NM NM NM NM (20 )% (19 )% Total
common shares outstanding plus shares underlying stock-based awards
1,432,150 1,434,346 1,441,300 1,453,004 1,456,613 1,478,758 Total
common shares outstanding plus shares underlying stock-based awards
- Y/Y NM NM NM NM 2 % 3 %
Results of Operations
Revenue $ 149,648 $ 181,671 $ 207,937 $ 285,693 $ 230,666 $ 262,263
Revenue - YoY 286 % 153 % 62 % 72 % 54 % 44 % Revenue - TTM $
515,332 $ 625,205 $ 704,938 $ 824,949 $ 905,967 $ 986,559 Revenue
by region(1) North America $ 128,718 $ 147,638 $ 167,306 $ 219,394
$ 170,488 $ 177,410 North America - YoY 259 % 126 % 46 % 51 % 32 %
20 % North America - TTM $ 454,048 $ 536,467 $ 589,018 $ 663,057 $
704,827 $ 734,599 Europe $ 13,102 $ 22,052 $ 27,262 $ 39,976 $
32,721 $ 40,241 Europe - YoY NM 254 % 131 % 173 % 150 % 82 % Europe
- TTM $ 45,794 $ 61,610 $ 77,081 $ 102,392 $ 122,011 $ 140,200 Rest
of World $ 7,829 $ 11,981 $ 13,368 $ 26,323 $ 27,458 $ 44,612 Rest
of World - YoY NM NM NM NM 251 % 272 % Rest of World - TTM $ 15,491
$ 27,129 $ 38,839 $ 59,501 $ 79,130 $ 111,761 Loss from operations
$ (2,213,767 ) $ (449,018 ) $ (461,827 ) $ (360,964 ) $ (392,530 )
$ (357,842 ) Loss from operations - YoY NM (288 )% (253 )% (113 )%
82 % 20 % Loss from operations - Margin NM (247 )% (222 )% (126 )%
(170 )% (136 )% Loss from operations - TTM $ (2,630,331 ) $
(2,963,490 ) $ (3,294,349 ) $ (3,485,576 ) $ (1,664,339 ) $
(1,573,163 ) Net loss(2) $ (2,208,837 ) $ (443,093 ) $ (443,159 ) $
(349,977 ) $ (385,785 ) $ (353,310 ) Net loss - YoY NM 282 % 257 %
106 % (83 )% (20 )% Net loss - TTM $ (2,618,904 ) $ (2,946,103 ) $
(3,265,034 ) $ (3,445,066 ) $ (1,622,014 ) $ (1,532,231 ) Adjusted
EBITDA $ (188,243 ) $ (193,990 ) $ (178,901 ) $ (158,922 ) $
(217,867 ) (169,032 ) Adjusted EBITDA - YoY (102 )% (85 )% (65 )%
(4 )% (16 )% 13 % Adjusted EBITDA - Margin (126 )% (107 )% (86 )%
(56 )% (94 )% (64 )% Adjusted EBITDA - TTM $ (554,252 ) $ (643,121
) $ (713,418 ) $ (720,056 ) $ (749,680 ) $ (724,722 )
(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.
SNAP INC.
SUPPLEMENTAL FINANCIAL INFORMATION AND
BUSINESS METRICS (continued)
(Dollars in thousands, except as noted
below, unaudited)
Q1 2017 Q2
2017 Q3 2017 Q4 2017 Q1 2018 Q2
2018 Other DAU (in millions) 166 173 178 187 191 188 DAU
- YoY 36 % 21 % 17 % 18 % 15 % 8 % DAU by region (in millions)
North America 71 75 77 80 81 80 North America - YoY 32 % 22 % 18 %
18 % 14 % 7 % Europe 55 57 57 60 62 61 Europe - YoY 41 % 24 % 17 %
17 % 13 % 7 % Rest of World 40 42 44 47 48 47 Rest of World - YoY
38 % 16 % 14 % 21 % 18 % 12 % ARPU $ 0.90 $ 1.05 $ 1.17 $ 1.53 $
1.21 $ 1.40 ARPU - YoY 183 % 109 % 39 % 46 % 34 % 34 % ARPU by
region North America $ 1.81 $ 1.97 $ 2.17 $ 2.75 $ 2.10 $ 2.21
North America - YoY 172 % 85 % 24 % 28 % 16 % 12 % Europe $ 0.24 $
0.39 $ 0.48 $ 0.66 $ 0.53 $ 0.66 Europe - YoY 245 % 186 % 98 % 133
% 120 % 70 % Rest of World $ 0.19 $ 0.29 $ 0.30 $ 0.56 $ 0.58 $
0.96 Rest of World - YoY NM NM NM 284 % 198 % 233 % Employees
(full-time; excludes part-time, contractors, and temporary
personnel) 2,360 2,607 2,958 3,069 2,989 2,879 Employees - YoY 201
% 146 % 109 % 65 % 27 % 10 %
Depreciation and
amortization expense Cost of revenue $ 1,669 $ 2,970 $ 5,404 $
5,179 $ 5,202 5,610 Research and development 5,755 5,983 6,401
6,937 8,791 9,489 Sales and marketing 2,600 1,589 2,820 3,441 3,569
3,991 General and administrative 2,426 2,043
2,842 3,229 3,991 3,424 Total $ 12,450 $
12,585 $ 17,467 $ 18,786 $ 21,553 $ 22,514 Depreciation and
amortization expense - YoY 147 % 110 % 135 % 77 % 73 % 79 %
Stock-based compensation expense Cost of revenue $ 19,708 $
2,223 $ 1,951 $ 2,189 $ 276 1,467 Research and development 718,080
163,848 143,303 129,199 77,815 92,303 Sales and marketing 159,726
20,558 27,254 28,936 16,185 21,996 General and administrative
1,094,607 58,399 49,194 20,720
38,982 40,605 Total $ 1,992,121 $ 245,028 $ 221,702 $
181,044 $ 133,258 $ 156,371 Stock-based compensation expense - YoY
NM NM NM NM (93 )% (36 )%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180807005781/en/
Snap Inc.Investors and
Analysts:ir@snap.comorPress:press@snap.com
Snap (NYSE:SNAP)
Historical Stock Chart
From Mar 2024 to Apr 2024
Snap (NYSE:SNAP)
Historical Stock Chart
From Apr 2023 to Apr 2024