Daily Active Users increased 17% year-over-year
to 238 million
Second quarter revenue increased 17%
year-over-year to $454 million
Second quarter operating cash flow improved 31%
year-over-year to $(67) million
Snap Inc. (NYSE: SNAP) today announced financial results for the
quarter ended June 30, 2020.
Financial Highlights
- Operating cash flow improved by $29 million to $(67) million in
Q2 2020, compared to the prior year.
- Free Cash Flow improved by $21 million to $(82) million in Q2
2020, compared to the prior year.
- Common shares outstanding plus shares underlying stock-based
awards totaled 1,616 million at June 30, 2020, compared to 1,553
million one year ago.
- Revenue increased 17% to $454 million in Q2 2020, compared to
the prior year.
- Net loss was $(326) million in Q2 2020, compared to $(255)
million in the prior year.
- Adjusted EBITDA was $(96) million in Q2 2020, compared to $(79)
million in the prior year.
“We continued to grow our community and business in a
challenging and uncertain environment,” said Evan Spiegel, CEO. “I
am proud of our team for innovating on new experiences for our
community and driving value for our partners, demonstrating the
importance of our service in people's lives. We are grateful that
the resilience of our business has allowed us to remain focused on
our future growth and opportunity.”
Three Months Ended June
30,
Percent
Six Months Ended June
30,
Percent
2020
2019
Change
2020
2019
Change
(Unaudited)
(in thousands, except per
share amounts)
Cash used in operating activities
$
(66,554
)
$
(95,789
)
(31
)%
$
(60,271
)
$
(161,967
)
(63
)%
Free Cash Flow
$
(82,321
)
$
(103,422
)
20
%
$
(86,929
)
$
(181,414
)
52
%
Common shares outstanding plus shares
underlying stock-based awards
1,616,146
1,552,734
4
%
1,616,146
1,552,734
4
%
Operating loss
$
(310,608
)
$
(304,818
)
2
%
$
(596,972
)
$
(620,879
)
(4
)%
Revenue
$
454,158
$
388,021
17
%
$
916,636
$
708,447
29
%
Net loss
$
(325,951
)
$
(255,174
)
28
%
$
(631,887
)
$
(565,581
)
12
%
Adjusted EBITDA
$
(95,570
)
$
(78,713
)
(21
)%
$
(176,807
)
$
(202,162
)
13
%
Diluted net loss per share attributable to
common stockholders
$
(0.23
)
$
(0.19
)
20
%
$
(0.44
)
$
(0.42
)
5
%
Non-GAAP diluted net loss per share
$
(0.09
)
$
(0.06
)
42
%
$
(0.17
)
$
(0.16
)
5
%
Q2 2020 Summary & Key Highlights
Daily Active Users grew by 17% year-over-year and we saw
increased engagement across key metrics:
- DAUs were 238 million in Q2 2020, an increase of 35 million or
17% 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 each of iOS
and Android platforms.
- On average, Snapchatters opened Snapchat over 30 times every
day in Q2 2020.
We continue to invest in our Discover platform as a
destination for content that entertains and informs:
- The daily average number of Snapchatters watching Shows
increased by over 45% year-over-year in Q2 2020.
- The daily average number of Snapchatters over the age of 35
engaging with Discover content increased by over 40% year-over-year
in Q2 2020.
- We launched Happening Now, a dedicated feed on Discover
providing real-time, curated news from media partners such as The
Washington Post, ESPN, and BuzzFeed.
- We announced expanded multi-year content partnerships with
Disney, ESPN, NBC, ViacomCBS, the NBA, and the NFL.
- Digital native companies Wave and Barcroft Studios, top
creators of sports and lifestyle content, now reach average monthly
audiences of more than 50 million Snapchatters.
- We’ve expanded our international programming with Channel 4 in
the United Kingdom, Le Figaro in France, and Rotana, who now
reaches an average of nearly 10 million Snapchatters in the Middle
East each month.
We continue to invest in our camera and augmented reality
platforms:
- On average, over 180 million Snapchatters engaged with
augmented reality daily in Q2 2020.
- We’ve added new camera partners, such as PlantSnap, Dog
Scanner, and Nutrition Scanner to provide more experiences for our
community.
- We announced Voice Scan, which allows Snapchatters to activate
AR Lenses with their voice.
- We announced Local Lenses, which enable shared and persistent
AR experiences in much larger areas around the world.
- We launched music Lenses in Lens Explorer, a new category of
Lenses that enable Snapchatters to add songs to their Lenses.
- We launched Dynamic Lenses, which allow developers to bring
real-time information from their app into Snapchat Lenses.
We strengthened our ad platform to drive improved outcomes
for advertisers:
- We introduced Brand Profiles, which offer a permanent home for
brands on Snapchat, and Snapchatters can currently subscribe to
some of the world’s largest brands, including Dior, Target, and
Universal Pictures.
- We introduced First Commercial, which gives advertisers a way
to reserve the initial Commercial a Snapchatter sees that day in
their first Snapchat show session.
- To ensure advertisers can easily reach different audiences in
Discover, we launched content bundles in Snap Select that allow
brands to align their message with popular verticals like ‘Sports’,
‘Entertainment’, and ‘News’.
- We have enabled app and web attribution for Commercials to help
advertisers understand the impact that video on Snapchat has on any
business.
- We launched Snap Focus, an online learning portal where
advertisers can learn more about Snapchat’s advertising
solutions.
We continue to innovate to better serve our large and engaged
community:
- We introduced Snap Minis, bite-sized utilities made to be
shared between friends and integrated into conversations. Our most
recent Mini partners include Headspace, Atom Tickets, and
Tembo.
- We launched Action Bar, making it easier to navigate across our
platform features in Snapchat with just one tap.
- We improved Snap Map, which already reaches over 200 million
Snapchatters every month, by launching Places, which features
Stories, hours, reviews and delivery options for local
businesses.
- More than 800 apps have integrated with Snap Kit, and nearly
150 million Snapchatters are engaging with these integrations every
month.
- Since launching in April 2019, more than 100 million
Snapchatters have played Snap Games.
We added new tools and capabilities to support our developer
community:
- We launched Camera Kit for developers and brands to leverage
the best of Snapchat’s AR features on their own app.
- We launched Bitmoji for Games, which allows game developers to
personalize the player experience by putting players and friends
directly into their games.
- We launched SnapML, which enables our Lens creator community to
bring their own machine learning models directly into Lens Studio
to power their Lenses.
- We partnered with Google’s new Depth API for Android devices to
launch several depth-enabled Lenses and Lens Studio templates,
enabling Lens creators to make Lenses using Google’s new
technology.
- We launched Material Editor, a visual programming tool for
making custom 3D effects in Lens Studio.
Financial Guidance
Given the uncertainties related to the ongoing COVID-19 pandemic
and the rapidly shifting macro conditions, we are not providing our
expectations for revenue or Adjusted EBITDA for the third quarter
of 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.
Addressable reach is defined as the approximate number of
Snapchat users that an ad could reach over a 28-day period in a
given locality. When we calculate the percentage of a demographic
group that can be reached, we do so by dividing addressable reach
by relevant census figures. Addressable reach and age data are
subject to limitations. For more information, see Snap’s SEC
filings and businesshelp.snapchat.com.
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 and
regulations; 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 March
31, 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 quarterly report on Form 10-Q for the
quarter ended June 30, 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 June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Cash flows from operating
activities
Net loss
$
(325,951
)
$
(255,174
)
$
(631,887
)
$
(565,581
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
20,925
22,660
42,129
45,979
Stock-based compensation
186,171
195,574
358,220
358,130
Deferred income taxes
(2,118
)
291
(2,512
)
25
Gain on divestiture
—
(39,883
)
—
(39,883
)
Amortization of debt discount and issuance
costs
20,412
—
31,975
—
Other
(2,307
)
(1,399
)
8,117
(3,316
)
Change in operating assets and
liabilities, net of effect of acquisitions:
Accounts receivable, net of allowance
15,654
(39,751
)
108,546
32,119
Prepaid expenses and other current
assets
4,123
(4,761
)
(8,744
)
(4,490
)
Operating lease right-of-use assets
9,537
11,809
18,253
21,621
Other assets
108
2,769
(1,047
)
2,401
Accounts payable
2,279
21,009
8,013
24,099
Accrued expenses and other current
liabilities
14,863
7,735
32,773
(6,588
)
Operating lease liabilities
(10,985
)
(16,781
)
(24,979
)
(27,251
)
Other liabilities
735
113
872
768
Net cash used in operating activities
(66,554
)
(95,789
)
(60,271
)
(161,967
)
Cash flows from investing
activities
Purchases of property and equipment
(15,767
)
(7,633
)
(26,658
)
(19,447
)
Proceeds from divestiture, net
—
73,796
—
73,796
Non-marketable investments
(56,341
)
(450
)
(91,841
)
(2,700
)
Cash paid for acquisitions, net of cash
acquired
(20,204
)
—
(20,204
)
—
Purchases of marketable securities
(875,873
)
(283,520
)
(1,428,548
)
(809,040
)
Sales of marketable securities
—
77,489
217,958
77,489
Maturities of marketable securities
476,561
324,033
1,229,246
782,660
Other
(500
)
1,000
(500
)
1,029
Net cash provided by (used in) investing
activities
(492,124
)
184,715
(120,547
)
103,787
Cash flows from financing
activities
Proceeds from issuance of convertible
notes, net of issuance costs
988,582
—
988,582
—
Purchase of capped calls
(100,000
)
—
(100,000
)
—
Proceeds from the exercise of stock
options
20,477
1,342
23,607
6,938
Net cash provided by financing
activities
909,059
1,342
912,189
6,938
Change in cash, cash equivalents, and
restricted cash
350,381
90,268
731,371
(51,242
)
Cash, cash equivalents, and restricted
cash, beginning of period
902,250
247,464
521,260
388,974
Cash, cash equivalents, and restricted
cash, end of period
$
1,252,631
$
337,732
$
1,252,631
$
337,732
Supplemental disclosures
Cash paid for income taxes, net
$
562
$
(399
)
$
1,370
$
(79
)
Cash paid for interest
$
366
$
438
5,265
796
SNAP INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per share
amounts, unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Revenue
$
454,158
$
388,021
$
916,636
$
708,447
Costs and expenses:
Cost of revenue
250,454
215,492
503,864
419,259
Research and development
260,863
236,199
499,476
452,384
Sales and marketing
132,118
111,504
254,323
209,386
General and administrative
121,331
129,644
255,945
248,297
Total costs and expenses
764,766
692,839
1,513,608
1,329,326
Operating loss
(310,608
)
(304,818
)
(596,972
)
(620,879
)
Interest income
4,768
7,446
13,357
15,262
Interest expense
(24,727
)
(809
)
(39,840
)
(1,565
)
Other income (expense), net
3,575
44,085
(8,814
)
42,958
Loss before income taxes
(326,992
)
(254,096
)
(632,269
)
(564,224
)
Income tax benefit (expense)
1,041
(1,078
)
382
(1,357
)
Net loss
$
(325,951
)
$
(255,174
)
$
(631,887
)
$
(565,581
)
Net loss per share attributable to Class
A, Class B, and Class C common stockholders:
Basic
$
(0.23
)
$
(0.19
)
$
(0.44
)
$
(0.42
)
Diluted
$
(0.23
)
$
(0.19
)
$
(0.44
)
$
(0.42
)
Weighted average shares used in
computation of net loss per share:
Basic
1,447,022
1,362,544
1,436,085
1,350,763
Diluted
1,447,022
1,362,544
1,436,085
1,350,763
SNAP INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except par
value)
June 30,
2020
December 31,
2019
(unaudited)
Assets
Current assets
Cash and cash equivalents
$
1,251,721
$
520,317
Marketable securities
1,577,848
1,592,488
Accounts receivable, net of allowance
379,046
492,194
Prepaid expenses and other current
assets
49,734
38,987
Total current assets
3,258,349
2,643,986
Property and equipment, net
175,125
173,667
Operating lease right-of-use assets
259,564
275,447
Intangible assets, net
87,285
92,121
Goodwill
775,185
761,153
Other assets
148,521
65,550
Total assets
$
4,704,029
$
4,011,924
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
58,618
$
46,886
Operating lease liabilities
42,755
42,179
Accrued expenses and other current
liabilities
442,239
410,610
Total current liabilities
543,612
499,675
Convertible senior notes, net
1,625,743
891,776
Operating lease liabilities,
noncurrent
278,073
303,178
Other liabilities
61,936
57,382
Total liabilities
2,509,364
1,752,011
Commitments and contingencies
Stockholders’ equity
Class A non-voting common stock, $0.00001
par value. 3,000,000 shares
authorized, 1,160,127 shares issued and
outstanding at December 31, 2019, and
3,000,000 shares authorized, 1,204,957
shares issued and outstanding
at June 30, 2020.
12
12
Class B voting common stock, $0.00001 par
value. 700,000 shares authorized,
24,522 shares issued and outstanding at
December 31, 2019, and 700,000 shares
authorized, 24,215 shares issued and
outstanding at June 30, 2020.
—
—
Class C voting common stock, $0.00001 par
value. 260,888 shares authorized,
231,147 shares issued and outstanding at
December 31, 2019, and 260,888 shares
authorized, 234,448 shares issued and
outstanding at June 30, 2020.
2
2
Additional paid-in capital
9,773,857
9,205,256
Accumulated other comprehensive income
(loss)
(609
)
573
Accumulated deficit
(7,578,597
)
(6,945,930
)
Total stockholders’ equity
2,194,665
2,259,913
Total liabilities and stockholders’
equity
$
4,704,029
$
4,011,924
SNAP INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(in thousands, unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Free Cash Flow reconciliation:
Net cash used in operating activities
$
(66,554
)
$
(95,789
)
$
(60,271
)
$
(161,967
)
Less:
Purchases of property and equipment
(15,767
)
(7,633
)
(26,658
)
(19,447
)
Free Cash Flow
$
(82,321
)
$
(103,422
)
$
(86,929
)
$
(181,414
)
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Adjusted EBITDA reconciliation:
Net loss
$
(325,951
)
$
(255,174
)
$
(631,887
)
$
(565,581
)
Add (deduct):
Interest income
(4,768
)
(7,446
)
(13,357
)
(15,262
)
Interest expense
24,727
809
39,840
1,565
Other (income) expense, net
(3,575
)
(44,085
)
8,814
(42,958
)
Income tax (benefit) expense
(1,041
)
1,078
(382
)
1,357
Depreciation and amortization
20,925
22,660
42,129
45,979
Stock-based compensation expense
186,171
195,574
358,220
358,130
Payroll tax expense related to stock-based
compensation
7,942
7,871
19,816
14,608
Adjusted EBITDA
$
(95,570
)
$
(78,713
)
$
(176,807
)
$
(202,162
)
Total depreciation and amortization
expense by function:
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Depreciation and amortization expense:
Cost of revenue
$
5,532
$
5,642
$
11,057
$
11,788
Research and development
8,463
7,188
17,378
15,838
Sales and marketing
3,381
3,045
6,547
7,060
General and administrative
3,549
6,785
7,147
11,293
Total
$
20,925
$
22,660
$
42,129
$
45,979
Total stock-based compensation expense by
function:
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Stock-based compensation expense:
Cost of revenue
$
2,066
$
1,786
$
3,848
$
3,635
Research and development
127,516
132,610
245,833
244,852
Sales and marketing
27,107
26,474
51,913
44,234
General and administrative
29,482
34,704
56,626
65,409
Total
$
186,171
$
195,574
$
358,220
$
358,130
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,
2020
2019
2020
2019
Non-GAAP net loss
reconciliation:
Net loss
$
(325,951
)
$
(255,174
)
$
(631,887
)
$
(565,581
)
Amortization of intangible assets
7,378
9,048
15,358
19,417
Stock-based compensation expense
186,171
195,574
358,220
358,130
Payroll tax expense related to stock-based
compensation
7,942
7,871
19,816
14,608
Gain on divestiture
—
(39,883
)
—
(39,883
)
Income tax adjustments
86
376
27
262
Non-GAAP net loss
$
(124,374
)
$
(82,188
)
$
(238,466
)
$
(213,047
)
Weighted-average common shares -
Diluted
1,447,022
1,362,544
1,436,085
1,350,763
Non-GAAP diluted net loss per share
reconciliation:
Diluted net loss per share
$
(0.23
)
$
(0.19
)
$
(0.44
)
$
(0.42
)
Non-GAAP adjustment to net loss
0.14
0.13
0.27
0.26
Non-GAAP diluted net loss per share
$
(0.09
)
$
(0.06
)
$
(0.17
)
$
(0.16
)
SNAP INC.
SUPPLEMENTAL FINANCIAL
INFORMATION AND BUSINESS METRICS
(dollars and shares in thousands,
except as noted below, unaudited)
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Cash Flows and Shares
Net cash provided by (used in) operating
activities
$
(66,178
)
$
(95,789
)
$
(76,149
)
$
(66,842
)
$
6,283
$
(66,554
)
Net cash provided by (used in) operating
activities - YoY (year-over-year)
71
%
52
%
43
%
(47
)%
109
%
31
%
Net cash provided by (used in) operating
activities - TTM (trailing twelve months)
$
(524,121
)
$
(420,564
)
$
(364,170
)
$
(304,958
)
$
(232,497
)
$
(203,262
)
Purchases of property and equipment
$
(11,814
)
$
(7,633
)
$
(7,938
)
$
(9,093
)
$
(10,891
)
$
(15,767
)
Purchases of property and equipment -
YoY
(67
)%
(78
)%
(70
)%
(60
)%
(8
)%
107
%
Purchases of property and equipment -
TTM
$
(95,741
)
$
(68,473
)
$
(50,126
)
$
(36,478
)
$
(35,555
)
$
(43,689
)
Free Cash Flow
$
(77,992
)
$
(103,422
)
$
(84,087
)
$
(75,935
)
$
(4,608
)
$
(82,321
)
Free Cash Flow - YoY
71
%
56
%
47
%
49
%
94
%
20
%
Free Cash Flow - TTM
$
(619,862
)
$
(489,037
)
$
(414,296
)
$
(341,436
)
$
(268,052
)
$
(246,951
)
Common shares outstanding
1,334,931
1,372,149
1,389,395
1,415,796
1,439,589
1,463,620
Common shares outstanding - YoY
6
%
8
%
8
%
7
%
8
%
7
%
Shares underlying stock-based awards
209,055
180,585
175,813
160,239
149,004
152,526
Shares underlying stock-based awards -
YoY
3
%
(12
)%
(5
)%
(15
)%
(29
)%
(16
)%
Total common shares outstanding plus
shares underlying stock-based awards
1,543,986
1,552,734
1,565,208
1,576,035
1,588,593
1,616,146
Total common shares outstanding plus
shares underlying stock-based awards - YoY
6
%
5
%
6
%
5
%
3
%
4
%
Results of Operations
Revenue
$
320,426
$
388,021
$
446,199
$
560,889
$
462,477
$
454,158
Revenue - YoY
39
%
48
%
50
%
44
%
44
%
17
%
Revenue - TTM
$
1,270,206
$
1,395,964
$
1,544,468
$
1,715,535
$
1,857,586
$
1,923,723
Revenue by region(1)
North America
$
225,705
$
260,017
$
316,028
$
382,029
$
315,650
$
306,740
North America - YoY
32
%
47
%
52
%
42
%
40
%
18
%
North America - TTM
$
879,450
$
962,057
$
1,070,608
$
1,183,779
$
1,273,724
$
1,320,447
Europe
$
47,448
$
60,633
$
68,553
$
91,873
$
76,498
$
78,635
Europe - YoY
45
%
51
%
36
%
47
%
61
%
30
%
Europe - TTM
$
200,637
$
221,029
$
239,104
$
268,507
$
297,557
$
315,559
Rest of World
$
47,273
$
67,374
$
61,618
$
86,987
$
70,329
$
68,783
Rest of World - YoY
72
%
51
%
55
%
49
%
49
%
2
%
Rest of World - TTM
$
190,120
$
212,882
$
234,760
$
263,252
$
286,308
$
287,717
Operating loss
$
(316,061
)
$
(304,818
)
$
(228,853
)
$
(253,596
)
$
(286,364
)
$
(310,608
)
Operating loss - YoY
(19
)%
(15
)%
(29
)%
30
%
(9
)%
2
%
Operating loss - Margin
(99
)%
(79
)%
(51
)%
(45
)%
(62
)%
(68
)%
Operating loss - TTM
$
(1,191,981
)
$
(1,138,957
)
$
(1,044,439
)
$
(1,103,328
)
$
(1,073,631
)
$
(1,079,421
)
Net loss
$
(310,407
)
$
(255,174
)
$
(227,375
)
$
(240,704
)
$
(305,936
)
$
(325,951
)
Net loss - YoY
(20
)%
(28
)%
(30
)%
26
%
(1
)%
28
%
Net loss - TTM
$
(1,180,533
)
$
(1,082,397
)
$
(984,624
)
$
(1,033,660
)
$
(1,029,189
)
$
(1,099,966
)
Adjusted EBITDA
(123,449
)
(78,713
)
(42,375
)
42,307
(81,237
)
(95,570
)
Adjusted EBITDA - YoY
43
%
53
%
69
%
184
%
34
%
(21
)%
Adjusted EBITDA - Margin(2)
(39
)%
(20
)%
(9
)%
8
%
(18
)%
(21
)%
Adjusted EBITDA - TTM
$
(481,221
)
$
(390,902
)
$
(294,900
)
$
(202,230
)
$
(160,018
)
$
(176,875
)
(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 as noted below, unaudited)
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Other
DAU (in millions)
190
203
210
218
229
238
DAU - YoY
(0
)%
8
%
13
%
17
%
20
%
17
%
DAU by region (in millions)
North America
80
83
84
86
88
90
North America - YoY
(1
)%
3
%
6
%
9
%
10
%
9
%
Europe
61
64
65
67
70
71
Europe - YoY
(2
)%
5
%
9
%
12
%
14
%
12
%
Rest of World
49
56
61
64
71
77
Rest of World - YoY
2
%
21
%
28
%
36
%
45
%
37
%
ARPU
$
1.68
$
1.91
$
2.12
$
2.58
$
2.02
$
1.91
ARPU - YoY
39
%
37
%
33
%
23
%
20
%
—
ARPU by region
North America
$
2.81
$
3.14
$
3.75
$
4.42
$
3.57
$
3.40
North America - YoY
34
%
42
%
43
%
31
%
27
%
8
%
Europe
$
0.77
$
0.95
$
1.05
$
1.37
$
1.09
$
1.10
Europe - YoY
47
%
43
%
24
%
31
%
41
%
16
%
Rest of World
$
0.97
$
1.20
$
1.01
$
1.35
$
1.00
$
0.89
Rest of World - YoY
68
%
25
%
21
%
9
%
3
%
(26
)%
Employees (full-time; excludes part-time,
contractors, and temporary personnel)
2,818
2,734
2,908
3,195
3,427
3,550
Employees - YoY
(6
)%
(5
)%
0
%
11
%
22
%
30
%
Depreciation and amortization
expense
Cost of revenue
$
6,146
$
5,642
$
4,580
$
4,903
$
5,525
$
5,532
Research and development
8,650
7,188
8,632
8,738
8,915
8,463
Sales and marketing
4,015
3,045
3,109
3,087
3,166
3,381
General and administrative
4,508
6,785
4,325
3,892
3,598
3,549
Total
$
23,319
$
22,660
$
20,646
$
20,620
$
21,204
$
20,925
Depreciation and amortization expense -
YoY
8
%
1
%
(17
)%
(9
)%
(9
)%
(8
)%
Stock-based compensation
expense
Cost of revenue
$
1,849
$
1,786
$
1,332
$
1,398
$
1,782
$
2,066
Research and development
112,242
132,610
108,176
111,611
118,317
127,516
Sales and marketing
17,760
26,474
23,333
25,788
24,806
27,107
General and administrative
30,705
34,704
28,387
27,858
27,144
29,482
Total
$
162,556
$
195,574
$
161,228
$
166,655
$
172,049
$
186,171
Stock-based compensation expense - YoY
22
%
25
%
27
%
37
%
6
%
(5
)%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200721005903/en/
Investors and Analysts: ir@snap.com
Press: press@snap.com
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