Daily Active Users increased 8% year-over-year
to 203 million Revenue increased 48% year-over-year to $388 million
Adjusted EBITDA improved 53% year-over-year to $(79) million
Snap Inc. (NYSE: SNAP) today announced financial results for the
quarter ended June 30, 2019.
Financial Highlights
- Operating cash flow improved by $104 million to $(96) million
in Q2 2019, compared to the prior year.
- Free Cash Flow improved by $131 million to $(103) million in Q2
2019, compared to the prior year.
- Common shares outstanding plus shares underlying stock-based
awards totaled 1,553 million at June 30, 2019, compared with 1,479
million one year ago.
- Revenue increased 48% to $388 million in Q2 2019, compared to
the prior year.
- Operating loss improved $53 million to $(305) million in Q2
2019, compared to the prior year.
- Net loss improved $98 million to $(255) million in Q2 2019,
compared to the prior year.
- Adjusted EBITDA improved $90 million to $(79) million in Q2
2019, compared to the prior year.
“The growth in our community, engagement, and revenue is the
result of several transitions we completed over the past 18
months,” said Evan Spiegel, CEO. “We look forward to building on
our momentum and making significant ongoing progress in each of
these areas.”
Three Months Ended June
30,
Percent
Six Months Ended June
30,
Percent
2019
2018
Change
2019
2018
Change
(Unaudited)
(in thousands, except per
share amounts)
Cash used in operating activities
$
(95,789
)
$
(199,346
)
(52
)%
$
(161,967
)
$
(431,327
)
(62)
%
Free Cash Flow
$
(103,422
)
$
(234,247
)
56
%
$
(181,414
)
$
(502,543
)
64
%
Common shares outstanding plus shares
underlying stock-based awards
1,552,734
1,478,758
5
%
1,552,734
1,478,758
5
%
Operating loss
$
(304,818
)
$
(357,842
)
(15
)%
$
(620,879
)
$
(750,372
)
(17
)%
Revenue
$
388,021
$
262,263
48
%
$
708,447
$
492,929
44
%
Net loss
$
(255,174
)
$
(353,310
)
(28
)%
$
(565,581
)
$
(739,095
)
(23
)%
Adjusted EBITDA
$
(78,713
)
$
(169,032
)
53
%
$
(202,162
)
$
(386,897
)
48
%
Diluted net loss per share attributable to
common shareholders
$
(0.19
)
$
(0.27
)
(31
)%
$
(0.42
)
$
(0.58
)
(28
)%
Non-GAAP diluted net loss per share
$
(0.06
)
$
(0.14
)
(56
)%
$
(0.16
)
$
(0.31
)
(49
)%
Q2 2019 Summary & Key Highlights
We added 13 million Daily Active Users in the second quarter
and saw increased engagement across key metrics:
- DAUs were 203 million in Q2 2019, compared to 190 million in Q1
2019 and 188 million in Q2 2018.
- DAUs were up sequentially and year-over-year in each of North
America, Europe, and Rest of World.
- DAUs were up sequentially and year-over-year on each of iOS and
Android platforms.
- The average number of Snaps created every day grew to more than
3.5 billion in Q2 2019.
We are seeing early results from the improvements of our
Android application:
- On the majority of Android devices used by new users,
Snapchatters are now sending 7% more Snaps when compared to the old
version, which we believe is an important leading indicator of
their long-term retention.
- We saw more than a 10% increase in the retention rate of people
who open Snapchat for the first time.
We continue to invest in our Discover platform, with a
particular focus on building a sustainable premium content
ecosystem:
- Our audience watching content on Discover every day has grown
over 35% year-over-year.
- Total daily time spent by Snapchatters watching Discover
increased by over 60% year-over-year.
- Total daily time spent by Snapchatters watching Shows, our 3-5
minute premium episodes that are vertically shot and quickly paced,
more than tripled compared to Q2 2018.
- 90% of Snapchatters who completed the first season of “Endless
Summer,” a Snap Original produced by Bunim/Murray Productions, went
on to watch season two in its first month.
We continue to invest in our augmented reality
platform:
- We recently launched the next generation of AR Lenses that use
deep neural networks to modify a person’s appearance in real-time,
and over 200 million Snapchatters played with these new Lenses in
the first two weeks.
- The number of Snapchatters submitting new Lenses through Lens
Studio every month grew by more than 20% from the prior
quarter.
- By the end of Q2 2019, over 500,000 Lenses had been created by
our community through Lens Studio.
- We saw more engagement with Lenses created by our community in
Q2 2019 than the entirety of 2018.
We launched Snap Games in Q2 2019 to bring the fun of playing
games with your friends to Snapchat and foster a scalable ecosystem
that benefits users, developers, and Snap:
- In the past four months, we have worked with our partners to
release seven new made-for-Snapchat games for our community,
including three games that allow users to play as their
Bitmoji.
We continue to build on and improve Snap Kit, our set of
developer tools that allow our partners to bring Snapchat features
into their services:
- We more than doubled the number of partner app integrations
since the end of 2018.
- 11 apps created by our partners are currently in the top 100 of
the iOS App Store and Google Play Store.
We strengthened our platform capabilities to drive improved
outcomes for advertisers:
- We started testing our new Instant Create onboarding flow,
which generates ads for businesses in three simple steps from their
existing assets, be it their app or their ecommerce
storefront.
- We announced the launch of Snap Select, a new way for
advertisers to run unskippable Commercials within a curated set of
our Shows programming.
Financial Guidance
The following forward-looking statements reflect our
expectations for the third quarter of 2019 as of July 23, 2019, 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 2019 Outlook
- Revenue is expected to be between $410 million and $435
million, compared to $298 million in Q3 2018.
- Adjusted EBITDA is expected to be between $(85) million and
$(60) million, compared to $(138) million in Q3 2018.
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,
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 that we
believe may 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 attract and retain qualified
and key personnel; and future acquisitions or investments, as well
as risks, uncertainties, and other factors described in “Risk
Factors” and elsewhere in our quarterly report on Form 10-Q for the
quarter ended March 31, 2019 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, 2019 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,
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,
2019
2018
2019
2018
Cash flows from operating
activities
Net loss
$
(255,174
)
$
(353,310
)
$
(565,581
)
$
(739,095
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
22,660
22,514
45,979
44,068
Stock-based compensation
195,574
156,371
358,130
289,630
Deferred income taxes
291
17
25
253
Other
(1,399
)
(5,893
)
(3,316
)
(9,287
)
Gain on divestiture
(39,883
)
—
(39,883
)
—
Change in operating assets and
liabilities, net of effect of acquisitions:
Accounts receivable, net of allowance
(39,751
)
(13,926
)
32,119
34,771
Prepaid expenses and other current
assets
(4,761
)
7,815
(4,490
)
(2,624
)
Operating lease right-of-use asset
11,809
—
21,621
—
Other assets
2,769
9,021
2,401
13,225
Accounts payable
21,009
(9,653
)
24,099
(46,722
)
Accrued expenses and other current
liabilities
7,735
(19,356
)
(6,588
)
(29,505
)
Operating lease liabilities
(16,781
)
—
(27,251
)
—
Other liabilities
113
7,054
768
13,959
Net cash used in operating activities
(95,789
)
(199,346
)
(161,967
)
(431,327
)
Cash flows from investing
activities
Purchases of property and equipment
(7,633
)
(34,901
)
(19,447
)
(71,216
)
Sales of property and equipment
—
—
29
—
Proceeds from divestiture, net
73,796
—
73,796
—
Non-marketable investments
(450
)
(21,010
)
(2,700
)
(21,010
)
Purchases of marketable securities
(283,520
)
(396,885
)
(809,040
)
(874,098
)
Sales of marketable securities
77,489
—
77,489
45,007
Maturities of marketable securities
324,033
578,509
782,660
1,366,337
Other
1,000
(2,505
)
1,000
(2,565
)
Net cash provided by investing
activities
184,715
123,208
103,787
442,455
Cash flows from financing
activities
Proceeds from the exercise of stock
options
1,342
1,914
6,938
47,723
Stock repurchases from employees for tax
withholdings
—
—
—
(551
)
Net cash provided by financing
activities
1,342
1,914
6,938
47,172
Change in cash, cash
equivalents, and restricted cash
90,268
(74,224
)
(51,242
)
58,300
Cash, cash equivalents, and restricted
cash, beginning of period
247,464
469,531
388,974
337,007
Cash, cash equivalents, and restricted
cash, end of period
$
337,732
$
395,307
$
337,732
$
395,307
Supplemental disclosures
Cash paid for income
taxes, net
$
(399
)
$
1,406
$
(79
)
$
2,397
SNAP INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per share
amounts, unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2019
2018
2019
2018
Revenue
$
388,021
$
262,263
$
708,447
$
492,929
Costs and expenses:
Cost of revenue
215,492
191,565
419,259
388,363
Research and development
236,199
203,246
452,384
404,232
Sales and marketing
111,504
101,685
209,386
203,798
General and administrative
129,644
123,609
248,297
246,908
Total costs and expenses
692,839
620,105
1,329,326
1,243,301
Operating loss
(304,818
)
(357,842
)
(620,879
)
(750,372
)
Interest income
7,446
6,600
15,262
12,704
Interest expense
(809
)
(930
)
(1,565
)
(1,864
)
Other income (expense), net
44,085
(61
)
42,958
3,092
Loss before income taxes
(254,096
)
(352,233
)
(564,224
)
(736,440
)
Income tax benefit (expense)
(1,078
)
(1,077
)
(1,357
)
(2,655
)
Net loss
$
(255,174
)
$
(353,310
)
$
(565,581
)
$
(739,095
)
Net loss per share attributable to Class
A, Class B, and Class C common stockholders:
Basic
$
(0.19
)
$
(0.27
)
$
(0.42
)
$
(0.58
)
Diluted
$
(0.19
)
$
(0.27
)
$
(0.42
)
$
(0.58
)
Weighted average shares used in
computation of net loss per share:
$
—
Basic
1,362,544
1,294,846
1,350,763
1,283,668
Diluted
1,362,544
1,294,846
1,350,763
1,283,668
SNAP INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except par
value)
June 30,
2019
December 31, 2018
(unaudited)
Assets
Current assets
Cash and cash equivalents
$
335,744
$
387,149
Marketable securities
849,050
891,914
Accounts receivable, net of allowance
313,504
354,965
Prepaid expenses and other current
assets
41,457
41,900
Total current assets
1,539,755
1,675,928
Property and equipment, net
185,440
212,560
Operating lease right-of-use assets
271,745
—
Intangible assets, net
79,811
126,054
Goodwill
628,474
632,370
Other assets
70,800
67,194
Total assets
$
2,776,025
$
2,714,106
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
51,902
$
30,876
Operating lease liabilities
47,100
—
Accrued expenses and other current
liabilities
240,935
261,815
Total current liabilities
339,937
292,691
Operating lease liabilities,
noncurrent
311,663
—
Other liabilities
7,727
110,416
Total liabilities
659,327
403,107
Commitments and contingencies
Stockholders’ equity
Class A non-voting common stock, $0.00001
par value. 3,000,000 shares
authorized, 999,304 shares issued and
outstanding at December 31, 2018, and
3,000,000 shares authorized, 1,096,653
shares issued and outstanding
at June 30, 2019.
11
10
Class B voting common stock, $0.00001 par
value. 700,000 shares authorized,
93,846 shares issued and outstanding at
December 31, 2018, and 700,000 shares
authorized, 47,582 shares issued and
outstanding at June 30, 2019.
—
1
Class C voting common stock, $0.00001 par
value. 260,888 shares authorized,
224,611 shares issued and outstanding at
December 31, 2018, and 260,888 shares
authorized, 227,914 shares issued and
outstanding at June 30, 2019.
2
2
Additional paid-in capital
8,592,434
8,220,417
Accumulated other comprehensive income
2,102
3,147
Accumulated deficit
(6,477,851
)
(5,912,578
)
Total stockholders’ equity
2,116,698
2,310,999
Total liabilities and stockholders’
equity
$
2,776,025
$
2,714,106
SNAP INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(in thousands, unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2019
2018
2019
2018
Free Cash Flow reconciliation:
Net cash used in operating activities
$
(95,789
)
$
(199,346
)
$
(161,967
)
$
(431,327
)
Less:
Purchases of property and equipment
(7,633
)
(34,901
)
(19,447
)
(71,216
)
Free Cash Flow
$
(103,422
)
$
(234,247
)
$
(181,414
)
$
(502,543
)
Three Months Ended June
30,
Six Months Ended June
30,
2019
2018
2019
2018
Adjusted EBITDA reconciliation:
Net loss
$
(255,174
)
$
(353,310
)
$
(565,581
)
$
(739,095
)
Add (deduct):
Interest income
(7,446
)
(6,600
)
(15,262
)
(12,704
)
Interest expense
809
930
1,565
1,864
Other (income) expense, net
(44,085
)
61
(42,958
)
(3,092
)
Income tax (benefit) expense
1,078
1,077
1,357
2,655
Depreciation and amortization
22,660
22,514
45,979
44,068
Stock-based compensation expense
195,574
156,371
358,130
289,630
Payroll tax expense related to stock-based
compensation
7,871
5,997
14,608
15,965
Reduction in force charges(1)
—
—
—
9,884
Lease exit charges(2)
—
3,928
—
3,928
Adjusted EBITDA
$
(78,713
)
$
(169,032
)
$
(202,162
)
$
(386,897
)
(1)
Reduction in force charges in the first
quarter of 2018 were related to a reduction in force plan impacting
approximately 7% of our then 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. 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)
Total depreciation and amortization
expense by function:
Three Months Ended June
30,
Six Months Ended June
30,
2019
2018
2019
2018
Depreciation and amortization expense:
Cost of revenue
$
5,642
$
5,610
$
11,788
$
10,812
Research and development
7,188
9,489
15,838
18,280
Sales and marketing
3,045
3,991
7,060
7,560
General and administrative
6,785
3,424
11,293
7,416
Total
$
22,660
$
22,514
$
45,979
$
44,068
Total stock-based compensation expense by function:
Three Months Ended June
30,
Six Months Ended June
30,
2019
2018
2019
2018
Stock-based compensation expense:
Cost of revenue
$
1,786
$
1,467
$
3,635
$
1,743
Research and development
132,610
92,303
244,852
170,118
Sales and marketing
26,474
21,996
44,234
38,182
General and administrative
34,704
40,605
65,409
79,587
Total
$
195,574
$
156,371
$
358,130
$
289,630
Three Months Ended June
30,
Six Months Ended June
30,
2019
2018
2019
2018
Non-GAAP net loss
reconciliation:
Net loss
$
(255,174
)
$
(353,310
)
$
(565,581
)
$
(739,095
)
Amortization of intangible assets
9,048
10,754
19,417
21,577
Stock-based compensation expense
195,574
156,371
358,130
289,630
Payroll tax expense related to stock-based
compensation
7,871
5,997
14,608
15,965
Gain on divestiture
(39,883
)
—
(39,883
)
—
Reduction in force charges
—
—
—
9,884
Lease exit charges
—
3,928
—
3,928
Income tax adjustments
376
(339
)
262
(119
)
Non-GAAP net loss
$
(82,188
)
$
(176,599
)
$
(213,047
)
$
(398,230
)
Weighted-average common shares -
Diluted
1,362,544
1,294,846
1,350,763
1,283,668
Non-GAAP diluted net loss per share
reconciliation:
Diluted net loss per share
$
(0.19
)
$
(0.27
)
$
(0.42
)
$
(0.58
)
Non-GAAP adjustment to net loss
0.13
0.13
0.26
0.27
Non-GAAP diluted net loss per share
$
(0.06
)
$
(0.14
)
$
(0.16
)
$
(0.31
)
SNAP INC.
SUPPLEMENTAL FINANCIAL
INFORMATION AND BUSINESS METRICS
(dollars and shares in thousands,
except as noted below, unaudited)
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Cash Flows and Shares
Net cash used in operating activities
$
(231,981
)
$
(199,346
)
$
(132,543
)
$
(126,054
)
$
(66,178
)
$
(95,789
)
Net cash used in operating activities -
YoY (year-over-year)
(50
)%
5
%
32
%
28
%
71
%
52
%
Net cash used in operating activities -
TTM (trailing twelve months)
$
(811,651
)
$
(801,423
)
$
(739,953
)
$
(689,924
)
$
(524,121
)
$
(420,564
)
Purchases of property and equipment
$
(36,315
)
$
(34,901
)
$
(26,285
)
$
(22,741
)
$
(11,814
)
$
(7,633
)
Purchases of property and equipment -
YoY
102
%
80
%
1
%
7
%
(67
)%
(78
)%
Purchases of property and equipment -
TTM
$
(102,840
)
$
(118,376
)
$
(118,713
)
$
(120,242
)
$
(95,741
)
$
(68,473
)
Free Cash Flow
$
(268,296
)
$
(234,247
)
$
(158,828
)
$
(148,795
)
$
(77,992
)
$
(103,422
)
Free Cash Flow - YoY
(55
)%
(2
)%
28
%
25
%
71
%
56
%
Free Cash Flow - TTM
$
(914,491
)
$
(919,799
)
$
(858,666
)
$
(810,166
)
$
(619,862
)
$
(489,037
)
Common shares outstanding
1,254,439
1,273,163
1,291,217
1,317,760
1,334,931
1,372,149
Common shares outstanding - YoY
6
%
8
%
7
%
8
%
6
%
8
%
Shares underlying stock-based awards
202,175
205,595
184,802
188,863
209,055
180,585
Shares underlying stock-based awards -
YoY
(20
)%
(19
)%
(23
)%
(18
)%
3
%
(12
)%
Total common shares outstanding plus
shares underlying stock-based awards
1,456,613
1,478,758
1,476,019
1,506,623
1,543,986
1,552,734
Total common shares outstanding plus
shares underlying stock-based awards - YoY
2
%
3
%
2
%
4
%
6
%
5
%
Results of Operations
Revenue
$
230,666
$
262,263
$
297,695
$
389,822
$
320,426
$
388,021
Revenue - YoY
54
%
44
%
43
%
36
%
39
%
48
%
Revenue - TTM
$
905,967
$
986,559
$
1,076,317
$
1,180,446
$
1,270,206
$
1,395,964
Revenue by region(1)
North America
$
170,488
$
177,410
$
207,477
$
268,858
$
225,705
$
260,017
North America - YoY
32
%
20
%
24
%
23
%
32
%
47
%
North America - TTM
$
704,827
$
734,599
$
774,769
$
824,233
$
879,450
$
962,057
Europe
$
32,721
$
40,241
$
50,478
$
62,470
$
47,448
$
60,633
Europe - YoY
150
%
82
%
85
%
56
%
45
%
51
%
Europe - TTM
$
122,011
$
140,200
$
163,416
$
185,910
$
200,637
$
221,029
Rest of World
$
27,458
$
44,612
$
39,740
$
58,495
$
47,273
$
67,374
Rest of World - YoY
251
%
272
%
197
%
122
%
72
%
51
%
Rest of World - TTM
$
79,130
$
111,761
$
138,133
$
170,305
$
190,120
$
212,882
Operating loss
$
(392,530
)
$
(357,842
)
$
(323,371
)
$
(194,707
)
$
(316,061
)
$
(304,818
)
Operating loss - YoY
82
%
20
%
30
%
46
%
19
%
15
%
Operating loss - Margin
(170
)%
(136
)%
(109
)%
(50
)%
(99
)%
(79
)%
Operating loss - TTM
$
(1,664,339
)
$
(1,573,163
)
$
(1,434,707
)
$
(1,268,450
)
$
(1,191,981
)
$
(1,138,957
)
Net loss
$
(385,785
)
$
(353,310
)
$
(325,148
)
$
(191,668
)
$
(310,407
)
$
(255,174
)
Net loss - YoY
(83
)%
(20
)%
(27
)%
(45
)%
(20
)%
(28
)%
Net loss - TTM
$
(1,622,014
)
$
(1,532,231
)
$
(1,414,220
)
$
(1,255,911
)
$
(1,180,533
)
$
(1,082,397
)
Adjusted EBITDA
$
(217,867
)
$
(169,032
)
$
(138,377
)
(50,363
)
(123,449
)
(78,713
)
Adjusted EBITDA - YoY
(16
)%
13
%
23
%
68
%
43
%
53
%
Adjusted EBITDA - Margin
(94
)%
(64
)%
(46
)%
(13
)%
(39
)%
(20
)%
Adjusted EBITDA - TTM
$
(749,680
)
$
(724,722
)
$
(684,198
)
$
(575,637
)
$
(481,221
)
$
(390,902
)
(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 and shares in thousands,
except as noted below, unaudited)
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Other
DAU (in millions)
191
188
186
186
190
203
DAU - YoY
15
%
8
%
5
%
(0
)%
(0
)%
8
%
DAU by region (in millions)
North America
81
80
79
79
80
83
North America - YoY
14
%
7
%
3
%
(1
)%
(1
)%
3
%
Europe
62
61
59
60
61
64
Europe - YoY
13
%
7
%
4
%
(1
)%
(2
)%
5
%
Rest of World
48
47
47
47
49
56
Rest of World - YoY
18
%
12
%
8
%
1
%
2
%
21
%
ARPU
$
1.21
$
1.40
$
1.60
$
2.09
$
1.68
$
1.91
ARPU - YoY
34
%
34
%
37
%
37
%
39
%
37
%
ARPU by region
North America
$
2.10
$
2.21
$
2.62
$
3.38
$
2.81
$
3.14
North America - YoY
16
%
12
%
20
%
23
%
34
%
42
%
Europe
$
0.53
$
0.66
$
0.85
$
1.04
$
0.77
$
0.95
Europe - YoY
120
%
70
%
78
%
57
%
47
%
43
%
Rest of World
$
0.58
$
0.96
$
0.84
$
1.24
$
0.97
$
1.20
Rest of World - YoY
198
%
233
%
175
%
120
%
68
%
25
%
Employees (full-time; excludes part-time,
contractors, and temporary personnel)
2,989
2,879
2,903
2,884
2,818
2,734
Employees - YoY
27
%
10
%
(2
)%
(6
)%
(6
)%
(5
)%
Depreciation and amortization
expense
Cost of revenue
$
5,202
$
5,610
$
5,582
$
9,888
$
6,146
$
5,642
Research and development
8,791
9,489
10,174
4,547
8,650
7,188
Sales and marketing
3,569
3,991
4,054
3,475
4,015
3,045
General and administrative
3,991
3,424
5,088
4,772
4,508
6,785
Total
$
21,553
$
22,514
$
24,898
$
22,682
$
23,319
$
22,660
Depreciation and amortization expense -
YoY
73
%
79
%
43
%
21
%
8
%
1
%
Stock-based compensation
expense
Cost of revenue
$
276
$
1,467
$
1,368
$
1,283
$
1,849
$
1,786
Research and development
77,815
92,303
95,329
75,086
112,242
132,610
Sales and marketing
16,185
21,996
25,082
20,795
17,760
26,474
General and administrative
38,982
40,605
5,030
24,608
30,705
34,704
Total
$
133,258
$
156,371
$
126,809
$
121,772
$
162,556
$
195,574
Stock-based compensation expense - YoY
(93
)%
(36
)%
(43
)%
(33
)%
22
%
25
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190723005897/en/
Investors and Analysts: ir@snap.com
Press: press@snap.com
Snap (NYSE:SNAP)
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