Daily Active Users increased 15% year-over-year
to 383 million
First quarter revenue was $989 million
Operating cash flow was $151 million and Free
Cash Flow was $103 million
Snap Inc. (NYSE: SNAP) today announced financial results for the
quarter ended March 31, 2023.
"Our community continues to grow, reaching 383 million daily
active users in Q1, and we are working to deepen engagement with
our content platform while building innovative new features and
services like My AI," said Evan Spiegel, CEO. "We are working to
accelerate our revenue growth and we are using this opportunity to
make significant improvements to our advertising platform to help
drive increased return on investment for our advertising
partners."
Q1 2023 Financial Summary
- Revenue was $989 million, compared to $1,063 million in the
prior year.
- Net loss was $329 million, compared to $360 million in the
prior year.
- Adjusted EBITDA was $1 million, compared to $64 million in the
prior year.
- Operating cash flow was $151 million, compared to $127 million
in the prior year.
- Free Cash Flow was $103 million, compared to $106 million in
the prior year.
Three Months Ended
March 31,
Percent
Change
2023
2022
(Unaudited)
(in thousands, except per
share amounts)
Revenue
$
988,608
$
1,062,727
(7
)%
Operating loss
$
(365,264
)
$
(271,527
)
(35
)%
Net loss
$
(328,674
)
$
(359,624
)
9
%
Adjusted EBITDA(1)
$
813
$
64,468
(99
)%
Net cash provided by (used in) operating
activities
$
151,102
$
127,459
19
%
Free Cash Flow(2)
$
103,472
$
106,284
(3
)%
Diluted net loss per share attributable to
common stockholders
$
(0.21
)
$
(0.22
)
5
%
Non-GAAP diluted net income (loss) per
share(3)
$
0.01
$
(0.02
)
163
%
(1)
See page 10 for reconciliation of net loss
to Adjusted EBITDA.
(2)
See page 10 for reconciliation of net cash
provided by (used in) operating activities to Free Cash Flow.
(3)
See page 11 for reconciliation of diluted
net loss per share to non-GAAP diluted net income (loss) per
share.
Q1 2023 Summary & Key Highlights
We grew and deepened our engagement with our
community:
- DAUs were 383 million in Q1 2023, an increase of 51 million, or
15% year-over-year.
- DAUs increased sequentially and year-over-year in each of North
America, Europe, and Rest of World.
- Total time spent watching Spotlight content grew more than 170%
year-over-year, and Spotlight reached more than 350 million monthly
active users on average in Q1, representing an increase of 46%
year-over-year.
- We launched My AI, a new AI-powered chatbot to make
conversational artificial intelligence useful and enjoyable for our
community, and surface the best of Snapchat to our community,
including relevant AR Lenses and recommendations from the Snap
Map.
- We introduced 3D to the Snap Map to highlight Places and make
the Map more personal, fun, and engaging.
- We introduced our new Content Controls feature in Family Center
that allows parents to filter the types of content their teens can
watch on Snapchat.
- We announced new safeguards to My AI, including a new age
signal and time out functionality.
- We launched two new Sounds creative tools to make it easier to
discover and share music — Sounds Recommendations for Lenses and
Sounds Sync for Camera Roll.
We are focused on expanding and diversifying our revenue
growth:
- We simplified Ads Manager create workflows, improved ad
management experiences on mobile, redesigned the creative library
and simplified our payments onboarding experiences.
- We transitioned to a new ad format for Snapchatters that
aligned ad design with content design, which is an important input
toward a consistent and unified content and advertising interaction
experience across Spotlight and Stories.
- Apparel company Courir saw a 24% decrease in cost per purchase
within Ads Manager and a 43% increase in ROAS reported in Google
Analytics after implementing the 7/0 Pixel Purchase optimization
model.
- Snapchat+, our subscription service that offers exclusive,
experimental, and pre-release features, reached over 3 million
paying subscribers in Q1.
- We launched Generative AI Backgrounds, an exclusive Snapchat+
feature that allows Snapchatters to generate fun backgrounds for
their profiles using free-form text prompts.
- We launched AR Enterprise Services (ARES), our new SaaS
business, bringing our world-class AR technology suite beyond
Snapchat, and into customers’ owned-and-operated apps and websites;
early customers include Goodr, Princess Polly, and Gobi
Cashmere.
- Goodr leveraged our AR Try-On to replicate the experience of
in-store shopping on customers’ mobile devices, and saw an 81%
uplift in add-to-cart and a 67% uplift in conversion for mobile
device users, leading to a 59% increase in revenue per
shopper.
- Princess Polly incorporated our fit & sizing technology Fit
Finder for recommendations and our AR Image Try-On feature to
deliver over 50 million recommendations and saw a 24% lower product
return rate when shoppers used the technology.
- Gobi Cashmere’s shoppers using Fit Finder for recommendations
and AR Try-On for clothing features were 4x as likely to
convert.
We invested in our augmented reality platform:
- Ray Tracing, which enables photorealistic quality on digital
objects, is now available in Lens Studio to developers around the
world.
- We introduced support for Version Control for project
collaboration in Lens Studio, enabling developers to collaborate
simultaneously on new or existing Lens Studio projects while
maintaining the integrity of their source code.
- We introduced Portrait Relighting, which gives developers the
ability to enhance or change the light and background of photos, as
well as add their own custom lighting to photos.
- Lens Studio’s start screen now has a dedicated Learn Tab that
offers educational materials like videos and guides to help
developers learn how to build Lenses.
- Powered by Camera Kit, Microsoft Teams brought Snapchat Lenses
right into video meetings to help colleagues communicate and
collaborate as they discuss projects.
- We announced a new integration with Disguise, an industry
leader in live event visualization technology, that will bring Snap
AR to the world’s largest venues and tours.
- We partnered with the NFL to create a 3D model of the State
Farm Stadium so fans on the NFL app could see what it’s like inside
the official Super Bowl LVII stadium, and a Snapchat Lens of the
stadium allowed them to keep up with the game in real time through
AR.
- We partnered with British Vogue for an immersive experience
through Vogue x Snapchat: Redefining the Body, which allowed
visitors to enter the worlds of renowned designers and try on
iconic digital designs from Dior, Kenneth Ize, Richard Quinn,
Stella McCartney, Thebe Magugu, and Versace.
- Our AR Studio in Paris created a unique AR experience for
International Women’s Day by installing eight AR statues of
important female figures in French history across eight French
cities.
Financial Guidance
We are not providing formal guidance for revenue or adjusted
EBITDA for the second quarter of 2023.
Conference Call Information
Snap Inc. will host a conference call to discuss the results at
2:30 p.m. Pacific / 5:30 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 its websites (including snap.com and
investor.snap.com) 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; payroll and other tax expense
related to stock-based compensation; 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 technology company. We believe the camera
presents the 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, our future
stock repurchase programs or stock dividends, business strategy and
plans, user growth and engagement, product initiatives, objectives
of management for future operations, and advertiser and partner
offerings, 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 our financial outlook, macroeconomic uncertainty,
geo-political conflicts, and the persisting effects of the 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 ability to attain and
sustain profitability; our ability to generate and sustain positive
cash flow; our ability to attract and retain users, partners, and
advertisers; competition and new market entrants; managing 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 team members and key personnel; our ability to repay
outstanding debt; future acquisitions, divestitures, or
investments; and the potential adverse impact of climate change,
natural disasters, health epidemics, macroeconomic conditions, and
war or other armed conflict, as well as risks, uncertainties, and
other factors described in “Risk Factors” and elsewhere in our most
recent periodic report filed with the U.S. Securities and Exchange
Commission, or SEC, which is available on the SEC’s website at
www.sec.gov. Additional information will be made available in Snap
Inc.’s periodic report that will be filed with the SEC for the
period covered by this press release 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 geo-political conflicts,
the persisting effects of the COVID-19 pandemic, and macroeconomic
conditions, 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; payroll and other tax expense related to stock-based
compensation; 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 income
(loss), which is defined as net income (loss); excluding
amortization of intangible assets; stock-based compensation
expense; payroll and other tax expense related to stock-based
compensation; certain other non-cash or non-recurring items
impacting net income (loss) from time to time; and related income
tax adjustments. Non-GAAP net income (loss) and weighted average
diluted shares are then used to calculate non-GAAP diluted net
income (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
March 31,
2023
2022
Cash flows from operating
activities
Net loss
$
(328,674
)
$
(359,624
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
35,220
38,100
Stock-based compensation
314,931
275,444
Amortization of debt issuance costs
1,836
1,413
Losses (gains) on debt and equity
securities, net
(10,833
)
79,127
Other
(10,396
)
1,125
Change in operating assets and
liabilities, net of effect of acquisitions:
Accounts receivable, net of allowance
288,373
126,027
Prepaid expenses and other current
assets
(13,204
)
(27,178
)
Operating lease right-of-use assets
17,658
16,984
Other assets
850
(308
)
Accounts payable
(36,972
)
54,980
Accrued expenses and other current
liabilities
(90,191
)
(62,828
)
Operating lease liabilities
(18,550
)
(17,816
)
Other liabilities
1,054
2,013
Net cash provided by (used in) operating
activities
151,102
127,459
Cash flows from investing
activities
Purchases of property and equipment
(47,630
)
(21,175
)
Purchases of strategic investments
(4,480
)
(150
)
Cash paid for acquisitions, net of cash
acquired
—
(788
)
Purchases of marketable securities
(874,053
)
(1,342,381
)
Sales of marketable securities
5,351
9,777
Maturities of marketable securities
924,323
342,545
Other
2,327
(5,493
)
Net cash provided by (used in) investing
activities
5,838
(1,017,665
)
Cash flows from financing
activities
Proceeds from issuance of convertible
notes, net of issuance costs
—
1,483,500
Purchase of capped calls
—
(177,000
)
Proceeds from the exercise of stock
options
29
2,266
Deferred payments for acquisitions
(2,028
)
—
Net cash provided by (used in) financing
activities
(1,999
)
1,308,766
Change in cash, cash equivalents, and
restricted cash
154,941
418,560
Cash, cash equivalents, and restricted
cash, beginning of period
1,423,776
1,994,723
Cash, cash equivalents, and restricted
cash, end of period
$
1,578,717
$
2,413,283
Supplemental disclosures
Cash paid for income taxes, net
$
17,003
$
2,636
Cash paid for interest
$
4,421
$
3,454
SNAP INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per share
amounts, unaudited)
Three Months Ended
March 31,
2023
2022
Revenue
$
988,608
$
1,062,727
Costs and expenses:
Cost of revenue
439,986
420,897
Research and development
455,112
455,563
Sales and marketing
268,433
241,886
General and administrative
190,341
215,908
Total costs and expenses
1,353,872
1,334,254
Operating loss
(365,264
)
(271,527
)
Interest income
37,948
3,123
Interest expense
(5,885
)
(5,173
)
Other income (expense), net
11,372
(77,537
)
Loss before income taxes
(321,829
)
(351,114
)
Income tax benefit (expense)
(6,845
)
(8,510
)
Net loss
$
(328,674
)
$
(359,624
)
Net loss per share attributable to Class
A, Class B, and Class C common stockholders:
Basic
$
(0.21
)
$
(0.22
)
Diluted
$
(0.21
)
$
(0.22
)
Weighted average shares used in
computation of net loss per share:
Basic
1,581,370
1,619,113
Diluted
1,581,370
1,619,113
SNAP INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except par value,
unaudited)
March 31, 2023
December 31,
2022
Assets
Current assets
Cash and cash equivalents
$
1,578,528
$
1,423,121
Marketable securities
2,524,904
2,516,003
Accounts receivable, net of allowance
892,511
1,183,092
Prepaid expenses and other current
assets
146,973
134,431
Total current assets
5,142,916
5,256,647
Property and equipment, net
303,022
271,777
Operating lease right-of-use assets
355,062
370,952
Intangible assets, net
186,724
204,480
Goodwill
1,649,097
1,646,120
Other assets
251,569
279,562
Total assets
$
7,888,390
$
8,029,538
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
141,800
$
181,774
Operating lease liabilities
50,787
46,485
Accrued expenses and other current
liabilities
898,897
987,340
Total current liabilities
1,091,484
1,215,599
Convertible senior notes, net
3,744,237
3,742,520
Operating lease liabilities,
noncurrent
368,526
386,271
Other liabilities
105,703
104,450
Total liabilities
5,309,950
5,448,840
Commitments and contingencies
Stockholders’ equity
Class A non-voting common stock, $0.00001
par value. 3,000,000 shares authorized, 1,391,998 shares issued,
1,341,056 shares outstanding at March 31, 2023 and 3,000,000 shares
authorized, 1,371,242 shares issued, 1,319,930 shares outstanding
at December 31, 2022.
13
13
Class B voting common stock, $0.00001 par
value. 700,000 shares authorized, 22,522 shares issued and
outstanding at March 31, 2023 and 700,000 shares authorized, 22,529
shares issued and outstanding at December 31, 2022.
—
—
Class C voting common stock, $0.00001 par
value. 260,888 shares authorized, 231,627 shares issued and
outstanding at March 31, 2023 and 260,888 shares authorized,
231,627 shares issued and outstanding at December 31, 2022.
2
2
Treasury stock, at cost. 50,942 and 51,312
shares of Class A non-voting common stock at March 31, 2023 and
December 31, 2022, respectively.
(496,906
)
(500,514
)
Additional paid-in capital
13,620,326
13,309,828
Accumulated deficit
(10,543,331
)
(10,214,657
)
Accumulated other comprehensive income
(loss)
(1,664
)
(13,974
)
Total stockholders’ equity
2,578,440
2,580,698
Total liabilities and stockholders’
equity
$
7,888,390
$
8,029,538
SNAP INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(in thousands, unaudited)
Three Months Ended
March 31,
2023
2022
Free Cash Flow reconciliation:
Net cash provided by (used in) operating
activities
$
151,102
$
127,459
Less:
Purchases of property and equipment
(47,630
)
(21,175
)
Free Cash Flow
$
103,472
$
106,284
Three Months Ended
March 31,
2023
2022
Adjusted EBITDA reconciliation:
Net loss
$
(328,674
)
$
(359,624
)
Add (deduct):
Interest income
(37,948
)
(3,123
)
Interest expense
5,885
5,173
Other (income) expense, net
(11,372
)
77,537
Income tax (benefit) expense
6,845
8,510
Depreciation and amortization
35,220
38,100
Stock-based compensation expense
314,931
275,444
Payroll and other tax expense related to
stock-based compensation
15,926
22,451
Adjusted EBITDA
$
813
$
64,468
Total depreciation and amortization expense by function:
Three Months Ended
March 31,
2023
2022
Depreciation and amortization expense:
Cost of revenue
$
3,226
$
5,512
Research and development
24,139
22,123
Sales and marketing
5,073
7,392
General and administrative
2,782
3,073
Total
$
35,220
$
38,100
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
March 31,
2023
2022
Stock-based compensation expense:
Cost of revenue
$
1,885
$
2,446
Research and development
219,850
182,866
Sales and marketing
54,939
42,071
General and administrative
38,257
48,061
Total
$
314,931
$
275,444
Three Months Ended
March 31,
2023
2022
Non-GAAP net income (loss)
reconciliation:
Net loss
$
(328,674
)
$
(359,624
)
Amortization of intangible assets
17,755
22,505
Stock-based compensation expense
314,931
275,444
Payroll and other tax expense related to
stock-based compensation
15,926
22,451
Income tax adjustments
32
(61
)
Non-GAAP net income (loss)
$
19,970
$
(39,285
)
Weighted-average common shares -
Diluted
1,581,370
1,619,113
Non-GAAP diluted net income (loss) per
share reconciliation:
Diluted net loss per share
$
(0.21
)
$
(0.22
)
Non-GAAP adjustment to net loss
0.22
0.20
Non-GAAP diluted net income (loss) per
share
$
0.01
$
(0.02
)
SNAP INC.
SUPPLEMENTAL FINANCIAL
INFORMATION AND BUSINESS METRICS
(dollars and shares in thousands,
except per user amounts, unaudited)
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
(NM = Not Meaningful)
Cash Flows and Shares
Net cash provided by (used in) operating
activities
$
185,528
$
127,459
$
(124,081
)
$
55,945
$
125,291
$
151,102
Net cash provided by (used in) operating
activities - YoY (year-over-year)
453
%
(7
)%
23
%
(22
)%
(32
)%
19
%
Net cash provided by (used in) operating
activities - TTM (trailing twelve months)
$
292,880
$
283,453
$
260,458
$
244,851
$
184,614
$
208,257
Purchases of property and equipment
$
(24,565
)
$
(21,175
)
$
(23,370
)
$
(37,836
)
$
(46,925
)
$
(47,630
)
Purchases of property and equipment -
YoY
49
%
95
%
60
%
91
%
91
%
(125
)%
Purchases of property and equipment -
TTM
$
(69,875
)
$
(80,199
)
$
(88,946
)
$
(106,946
)
$
(129,306
)
$
(155,761
)
Free Cash Flow
$
160,963
$
106,284
$
(147,451
)
$
18,109
$
78,366
$
103,472
Free Cash Flow - YoY
333
%
(16
)%
(27
)%
(65
)%
(51
)%
(3
)%
Free Cash Flow - TTM
$
223,005
$
203,254
$
171,512
$
137,905
$
55,308
$
52,496
Common shares outstanding
1,619,283
1,632,563
1,644,974
1,605,868
1,574,086
1,595,205
Common shares outstanding - YoY
8
%
7
%
4
%
0
%
(3
)%
(2
)%
Shares underlying stock-based awards
82,814
75,066
92,105
94,772
131,718
128,218
Shares underlying stock-based awards -
YoY
(34
)%
(32
)%
(12
)%
2
%
59
%
71
%
Total common shares outstanding plus
shares underlying stock-based awards
1,702,097
1,707,629
1,737,079
1,700,640
1,705,804
1,723,423
Total common shares outstanding plus
shares underlying stock-based awards - YoY
4
%
5
%
3
%
—
%
—
%
1
%
Results of Operations
Revenue
$
1,297,885
$
1,062,727
$
1,110,909
$
1,128,476
$
1,299,735
$
988,608
Revenue - YoY
42
%
38
%
13
%
6
%
0.1
%
(7
)%
Revenue - TTM
$
4,117,048
$
4,410,191
$
4,538,992
$
4,599,997
$
4,601,847
$
4,527,728
Revenue by region (1)
North America
$
932,077
$
758,261
$
785,681
$
811,602
$
880,310
$
639,896
North America - YoY
41
%
37
%
12
%
3
%
(6
)%
(16
)%
North America - TTM
$
2,973,701
$
3,178,990
$
3,262,936
$
3,287,621
$
3,235,854
$
3,117,489
Europe
$
208,912
$
162,132
$
170,097
$
161,396
$
218,552
$
157,760
Europe - YoY
48
%
43
%
12
%
5
%
5
%
(3
)%
Europe - TTM
$
627,920
$
676,433
$
694,262
$
702,537
$
712,177
$
707,805
Rest of World
$
156,896
$
142,334
$
155,131
$
155,478
$
200,873
$
190,952
Rest of World - YoY
42
%
38
%
21
%
22
%
28
%
34
%
Rest of World - TTM
$
515,427
$
554,768
$
581,794
$
609,839
$
653,816
$
702,434
Operating loss
$
(25,127
)
$
(271,527
)
$
(400,940
)
$
(435,242
)
$
(287,597
)
$
(365,264
)
Operating loss - YoY
74
%
11
%
(108
)%
(141
)%
NM
(35
)%
Operating loss - Margin
(2
)%
(26
)%
(36
)%
(39
)%
(22
)%
(37
)%
Operating loss - TTM
$
(702,069
)
$
(669,990
)
$
(878,418
)
$
(1,132,836
)
$
(1,395,306
)
$
(1,489,043
)
Net income (loss)
$
22,550
$
(359,624
)
$
(422,067
)
$
(359,502
)
$
(288,460
)
$
(328,674
)
Net income (loss) - YoY
120
%
(25
)%
(178
)%
(400
)%
NM
9
%
Net income (loss) - TTM
$
(487,955
)
$
(560,697
)
$
(831,100
)
$
(1,118,643
)
$
(1,429,653
)
$
(1,398,703
)
Adjusted EBITDA
$
326,793
$
64,468
$
7,190
$
72,640
$
233,275
$
813
Adjusted EBITDA - YoY
97
%
3872
%
(94
)%
(58
)%
(29
)%
(99
)%
Adjusted EBITDA - Margin (2)
25
%
6
%
1
%
6
%
18
%
0.1
%
Adjusted EBITDA - TTM
$
616,686
$
682,863
$
572,650
$
471,091
$
377,573
$
313,918
(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, unaudited)
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Other
DAU (in millions)
319
332
347
363
375
383
DAU - YoY
20
%
18
%
18
%
19
%
17
%
15
%
DAU by region (in millions)
North America
97
98
99
100
100
100
North America - YoY
6
%
5
%
4
%
4
%
3
%
3
%
Europe
82
84
86
88
92
93
Europe - YoY
11
%
10
%
10
%
11
%
12
%
10
%
Rest of World
140
150
162
175
183
190
Rest of World - YoY
41
%
36
%
35
%
34
%
31
%
27
%
ARPU
$
4.06
$
3.20
$
3.20
$
3.11
$
3.47
$
2.58
ARPU - YoY
18
%
17
%
(4
)%
(11
)%
(15
)%
(19
)%
ARPU by region
North America
$
9.58
$
7.77
$
7.93
$
8.13
$
8.77
$
6.37
North America - YoY
33
%
31
%
8
%
(1
)%
(9
)%
(18
)%
Europe
$
2.54
$
1.93
$
1.98
$
1.83
$
2.38
$
1.70
Europe - YoY
33
%
30
%
2
%
(5
)%
(6
)%
(12
)%
Rest of World
$
1.12
$
0.95
$
0.96
$
0.89
$
1.10
$
1.00
Rest of World - YoY
1
%
2
%
(11
)%
(9
)%
(2
)%
6
%
Employees (full-time; excludes part-time,
contractors, and temporary personnel)
5,661
6,131
6,446
5,706
5,288
5,201
Employees - YoY
47
%
52
%
38
%
10
%
(7
)%
(15
)%
Depreciation and amortization
expense
Cost of revenue
$
4,832
$
5,512
$
5,061
$
5,548
$
8,114
$
3,226
Research and development
19,444
22,123
22,362
23,722
29,834
24,139
Sales and marketing
7,118
7,392
49,061
4,586
6,130
5,073
General and administrative
3,469
3,073
2,807
2,435
4,413
2,782
Total
$
34,863
$
38,100
$
79,291
$
36,291
$
48,491
$
35,220
Depreciation and amortization expense -
YoY
53
%
62
%
180
%
12
%
39
%
(8
)%
Stock-based compensation
expense
Cost of revenue
$
2,586
$
2,446
$
2,849
$
2,745
$
4,248
$
1,885
Research and development
202,953
182,866
221,650
246,783
319,447
219,850
Sales and marketing
45,991
42,071
48,577
43,098
69,346
54,939
General and administrative
46,034
48,061
45,734
50,333
57,533
38,257
Total
$
297,564
$
275,444
$
318,810
$
342,959
$
450,574
$
314,931
Stock-based compensation expense - YoY
35
%
16
%
24
%
14
%
51
%
14
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230427005858/en/
Investors and Analysts: ir@snap.com
Press: press@snap.com
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