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2018-12-31
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
|
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☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
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For the quarterly period ended September 30, 2019
or
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
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For the transition period from
to
Commission File Number: 001-38017
SNAP INC.
(Exact name of registrant
as specified in its charter)
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Delaware
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45-5452795
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(State or other jurisdiction of
incorporation or organizations)
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(I.R.S. Employer
Identification Number)
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2772 Donald Douglas Loop North
Santa Monica, California 90405
(Address of principal executive offices, including zip code)
(310) 399-3339
(Registrant's telephone,
including area code)
Securities registered pursuant to Section 12(b) of the
Act:
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Title of each
class
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Trading
Symbol(s)
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Name of each exchange on
which registered
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Class A Common Stock, par value $0.00001 per share
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SNAP
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New York Stock Exchange
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Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 (Exchange Act) during the preceding
12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such
filing requirements for the past 90
days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted
electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T during the preceding 12
months (or for such shorter period that the registrant was required
to submit such
files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, a
smaller reporting company, or an emerging growth company. See the
definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company,” and “emerging growth company” in Rule
12b-2 of the Exchange Act.
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☒
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Large accelerated filer
|
☐
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Accelerated filer
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|
|
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|
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|
☐
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Non-accelerated filer
|
☐
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Smaller reporting company
|
|
|
|
|
|
☐
|
Emerging growth company
|
|
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange
Act. ☐
Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange
Act). Yes ☐ No ☒
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
|
Class
|
|
Number of Shares Outstanding
|
|
Class A common stock, $0.00001 par value
|
|
1,138,349,322 shares outstanding as of October 17, 2019
|
|
Class B common stock, $0.00001 par value
|
|
32,056,088 shares outstanding as of October 17, 2019
|
|
Class C common stock, $0.00001 par value
|
|
229,564,537 shares outstanding as of October 17, 2019
|
TABLE OF CONTENTS
Snap Inc., “Snapchat,” and our other registered and common-law
trade names, trademarks, and service marks appearing in this
Quarterly Report on Form 10-Q are the property of Snap Inc. or our
subsidiaries.
2
NOTE REGARDING
FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q 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 Quarterly Report on Form 10-Q, 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 Quarterly Report on
Form 10-Q.
You should not rely on forward-looking statements as predictions of
future events. We have based the forward-looking statements
contained in this Quarterly Report on Form 10-Q 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, uncertainties, and other factors
described in “Risk Factors” and elsewhere in this Quarterly Report
on Form 10-Q, including among other things:
|
|
•
|
our financial
performance, including our revenues, cost of revenues, operating
expenses, and our ability to attain and sustain
profitability;
|
|
|
•
|
our ability to generate
and sustain positive cash flow;
|
|
|
•
|
our ability to attract
and retain users and publishers;
|
|
|
•
|
our ability to attract
and retain advertisers;
|
|
|
•
|
our ability to compete
effectively with existing competitors and new market
entrants;
|
|
|
•
|
our ability to
effectively manage our growth and future expenses;
|
|
|
•
|
our ability to comply
with modified or new laws and regulations applying to our
business;
|
|
|
•
|
our ability to maintain,
protect, and enhance our intellectual property;
|
|
|
•
|
our ability to
successfully expand in our existing market segments and penetrate
new market segments;
|
|
|
•
|
our ability to attract
and retain qualified employees and key personnel; and
|
|
|
•
|
future acquisitions of
or investments in complementary companies, products, services, or
technologies.
|
Moreover, we operate in a very competitive and rapidly changing
environment. New risks and uncertainties emerge from time to time,
and it is not possible for us to predict all risks and
uncertainties that could have an impact on the forward-looking
statements contained in this Quarterly Report on Form 10-Q. The
results, events, and circumstances reflected in the forward-looking
statements may not be achieved or occur, and actual results,
events, or circumstances could differ materially from those
described in the forward-looking statements.
In addition, statements that “we believe” and similar statements
reflect our beliefs and opinions on the relevant subject. These
statements are based on information available to us as of the date
of this Quarterly Report on Form 10-Q. And while we believe that
information provides a reasonable basis for these statements, that
information may be limited or incomplete. Our statements should not
be read to indicate that we have conducted an exhaustive inquiry
into, or review of, all relevant information. These statements are
inherently uncertain, and investors are cautioned not to unduly
rely on these statements.
The forward-looking statements made in this Quarterly Report on
Form 10-Q relate only to events as of the date on which the
statements are made. We undertake no obligation to update any
forward-looking statements made in this Quarterly Report on Form
10-Q to reflect events or circumstances after the date of this
Quarterly Report on Form 10-Q or to reflect new information or the
occurrence of unanticipated events, except as required by law. We
may not actually achieve the plans, intentions, or expectations
disclosed in our forward-looking statements, and you should not
place undue reliance on our forward-looking statements. Our
forward-looking statements do not reflect the potential impact of
any future acquisitions, mergers, dispositions, joint ventures, or
investments.
Investors and others should note that we may announce material
business and financial information to our investors using our
investor relations website (investor.snap.com), filings with the
U.S. Securities and Exchange Commission, or SEC, webcasts, press
releases, and conference calls. We use these mediums, including
Snapchat and our website, to communicate with our members and the
public about our company, our products, and other issues. It is
possible that the information that we make available may be deemed
to be material information. We therefore encourage investors and
others interested in our company to review the information that we
make available on our website.
3
NOTE REGARDING
USER METRICS AND OTHER DATA
We define a Daily Active User, or DAU, as a registered Snapchat
user who opens the Snapchat application at least once during a
defined 24-hour period. We calculate average Daily Active Users for
a particular quarter by adding the number of DAUs on each day of
that quarter and dividing that sum by the number of days in that
quarter. We also break out Daily Active Users by geography because
certain markets have a greater revenue opportunity and lower
bandwidth costs. We define average revenue per user, or ARPU, as
quarterly revenue divided by the average Daily Active Users. For
purposes of calculating ARPU, revenue by user geography 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 differs from our components of revenue disclosure in the
notes to our consolidated financial statements, where revenue is
based on the billing address of the advertising customer. For
information concerning these metrics as measured by us, see
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations.”
Unless otherwise stated, statistical information regarding our
users and their activities is determined by calculating the daily
average of the selected activity for the most recently completed
quarter included in this report.
While these metrics are determined based on what we believe to be
reasonable estimates of our user base for the applicable period of
measurement, there are inherent challenges in measuring how our
products are used across large populations globally. For example,
there may be individuals who have multiple Snapchat accounts, even
though we forbid that in our Terms of Service and implement
measures to detect and suppress that behavior. We have not
determined the number of such multiple accounts. Our user metrics
are also affected by technology on certain mobile devices that
automatically runs in the background of our Snapchat
application when another phone function is used, and this activity
can cause our system to miscount the
user metrics associated with such account. Changes
in our products, infrastructure, mobile operating systems, or
metric tracking system, or the introduction of new products, may
impact our ability to accurately determine active users or other
metrics and we may not determine such inaccuracies promptly. We
believe that we don’t capture all data regarding all our active
users. For example, technical issues may result in data not being
recorded from every user’s application. While we believe this
underreporting is generally immaterial, we are unable to precisely
determine the level of underreporting and for some periods the
underreporting may be material. We continually seek to address
these technical issues and improve our accuracy, but given the
complexity of the systems involved and the rapidly changing nature
of mobile devices and systems, we expect underreporting to
continue. We do not adjust our reported metrics to reflect this
underreporting.
Some of our demographic data may be incomplete or inaccurate. For
example, because users self-report their dates of birth, our
age-demographic data may differ from our users’ actual ages. And
because users who signed up for Snapchat before June 2013 were not
asked to supply their date of birth, we exclude those users and
estimate their ages based on a sample of the self-reported ages we
do have. If our active users provide us with incorrect or
incomplete information regarding their age or other
attributes, then our estimates may prove inaccurate and fail to
meet investor expectations.
In the past we have relied on third-party analytics providers to
calculate our metrics, but today we rely primarily on our analytics
platform that we developed and operate. We now use an analytics
platform that we developed and operate and we count a Daily Active
User only when a user opens the application and only once per user
per day. We believe this methodology more accurately measures our
user engagement. We have multiple pipelines of user data that we
use to determine whether a user has opened the application during a
particular day, and thus is a Daily Active User. This provides
redundancy in the event one pipeline of data were to become
unavailable for technical reasons, and also gives us redundant data
to help measure how users interact with our application.
If we fail to maintain an effective analytics platform, our metrics
calculations may be inaccurate. We regularly review, have adjusted
in the past, and are likely in the future to adjust our processes
for calculating our internal metrics to improve their accuracy. As
a result of such adjustments, our Daily Active Users or other
metrics may not be comparable to those in prior periods. Our
measures of Daily Active Users may differ from estimates published
by third parties or from similarly titled metrics of our
competitors due to differences in methodology or data used.
4
PART I - FINANCIAL
INFORMATION
ITEM 1. CONSOLIDATED
FINANCIAL STATEMENTS
Snap Inc.
Consolidated Statements of
Cash Flows
(in thousands)
(unaudited)
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(227,375
|
)
|
|
$
|
(325,148
|
)
|
|
$
|
(792,956
|
)
|
|
$
|
(1,064,243
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
20,646
|
|
|
|
24,898
|
|
|
|
66,625
|
|
|
|
68,966
|
|
|
Stock-based compensation
|
|
161,228
|
|
|
|
126,809
|
|
|
|
519,358
|
|
|
|
416,439
|
|
|
Deferred income taxes
|
|
170
|
|
|
|
(124
|
)
|
|
|
195
|
|
|
|
129
|
|
|
Lease exit charges
|
|
—
|
|
|
|
29,340
|
|
|
|
—
|
|
|
|
33,268
|
|
|
Gain on divestiture
|
|
—
|
|
|
|
—
|
|
|
|
(39,883
|
)
|
|
|
—
|
|
|
Amortization of debt discount and issuance costs
|
|
6,412
|
|
|
|
—
|
|
|
|
6,412
|
|
|
|
—
|
|
|
Other
|
|
(1,245
|
)
|
|
|
8,608
|
|
|
|
(4,561
|
)
|
|
|
(679
|
)
|
|
Change in operating assets and liabilities, net of effect of
acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net of allowance
|
|
(62,855
|
)
|
|
|
(18,834
|
)
|
|
|
(30,736
|
)
|
|
|
15,937
|
|
|
Prepaid expenses and other current assets
|
|
(490
|
)
|
|
|
(435
|
)
|
|
|
(4,980
|
)
|
|
|
(3,059
|
)
|
|
Operating lease right-of-use asset
|
|
35,633
|
|
|
|
—
|
|
|
|
57,254
|
|
|
|
—
|
|
|
Other assets
|
|
2,139
|
|
|
|
7,089
|
|
|
|
4,540
|
|
|
|
20,314
|
|
|
Accounts payable
|
|
4,220
|
|
|
|
2,084
|
|
|
|
28,319
|
|
|
|
(44,638
|
)
|
|
Accrued expenses and other current liabilities
|
|
23,243
|
|
|
|
14,841
|
|
|
|
16,655
|
|
|
|
(14,664
|
)
|
|
Operating lease liabilities
|
|
(36,008
|
)
|
|
|
—
|
|
|
|
(63,259
|
)
|
|
|
—
|
|
|
Other liabilities
|
|
(1,867
|
)
|
|
|
(1,671
|
)
|
|
|
(1,099
|
)
|
|
|
8,360
|
|
|
Net cash used in operating activities
|
|
(76,149
|
)
|
|
|
(132,543
|
)
|
|
|
(238,116
|
)
|
|
|
(563,870
|
)
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
(7,938
|
)
|
|
|
(26,285
|
)
|
|
|
(27,385
|
)
|
|
|
(97,501
|
)
|
|
Sales of property and equipment
|
|
—
|
|
|
|
—
|
|
|
|
29
|
|
|
|
—
|
|
|
Proceeds from divestiture, net
|
|
—
|
|
|
|
—
|
|
|
|
73,796
|
|
|
|
—
|
|
|
Non-marketable investments
|
|
(1,050
|
)
|
|
|
(250
|
)
|
|
|
(3,750
|
)
|
|
|
(21,260
|
)
|
|
Purchases of marketable securities
|
|
(1,115,358
|
)
|
|
|
(444,369
|
)
|
|
|
(1,924,398
|
)
|
|
|
(1,318,467
|
)
|
|
Sales of marketable securities
|
|
24,948
|
|
|
|
—
|
|
|
|
102,437
|
|
|
|
45,007
|
|
|
Maturities of marketable securities
|
|
411,079
|
|
|
|
560,465
|
|
|
|
1,193,739
|
|
|
|
1,926,802
|
|
|
Other
|
|
—
|
|
|
|
—
|
|
|
|
1,000
|
|
|
|
(2,565
|
)
|
|
Net cash provided by (used in) investing activities
|
|
(688,319
|
)
|
|
|
89,561
|
|
|
|
(584,532
|
)
|
|
|
532,016
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of convertible notes, net of issuance
costs
|
|
1,251,848
|
|
|
|
—
|
|
|
|
1,251,848
|
|
|
|
—
|
|
|
Purchase of capped calls
|
|
(102,086
|
)
|
|
|
—
|
|
|
|
(102,086
|
)
|
|
|
—
|
|
|
Proceeds from the exercise of stock options
|
|
7,788
|
|
|
|
142
|
|
|
|
14,726
|
|
|
|
47,865
|
|
|
Stock repurchases from employees for tax withholdings
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(551
|
)
|
|
Net cash provided by financing activities
|
|
1,157,550
|
|
|
|
142
|
|
|
|
1,164,488
|
|
|
|
47,314
|
|
|
Change in cash, cash equivalents, and restricted cash
|
|
393,082
|
|
|
|
(42,840
|
)
|
|
|
341,840
|
|
|
|
15,460
|
|
|
Cash, cash equivalents, and restricted cash, beginning of
period
|
|
337,732
|
|
|
|
395,307
|
|
|
|
388,974
|
|
|
|
337,007
|
|
|
Cash, cash equivalents, and restricted cash, end of period
|
$
|
730,814
|
|
|
$
|
352,467
|
|
|
$
|
730,814
|
|
|
$
|
352,467
|
|
|
Supplemental disclosures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for income taxes, net
|
$
|
643
|
|
|
$
|
758
|
|
|
$
|
564
|
|
|
$
|
3,155
|
|
See Notes to Consolidated Financial Statements.
5
Snap Inc.
Consolidated Statements of
Operations
(in thousands, except per share amounts)
(unaudited)
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
Revenue
|
$
|
446,199
|
|
|
$
|
297,695
|
|
|
$
|
1,154,646
|
|
|
$
|
790,624
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
223,140
|
|
|
|
197,554
|
|
|
|
642,399
|
|
|
|
585,917
|
|
|
Research and development
|
|
211,599
|
|
|
|
203,510
|
|
|
|
663,983
|
|
|
|
607,742
|
|
|
Sales and marketing
|
|
123,240
|
|
|
|
97,552
|
|
|
|
332,626
|
|
|
|
301,350
|
|
|
General and administrative
|
|
117,073
|
|
|
|
122,450
|
|
|
|
365,370
|
|
|
|
369,358
|
|
|
Total costs and expenses
|
|
675,052
|
|
|
|
621,066
|
|
|
|
2,004,378
|
|
|
|
1,864,367
|
|
|
Operating loss
|
|
(228,853
|
)
|
|
|
(323,371
|
)
|
|
|
(849,732
|
)
|
|
|
(1,073,743
|
)
|
|
Interest income
|
|
10,317
|
|
|
|
7,011
|
|
|
|
25,579
|
|
|
|
19,715
|
|
|
Interest expense
|
|
(8,654
|
)
|
|
|
(919
|
)
|
|
|
(10,219
|
)
|
|
|
(2,783
|
)
|
|
Other income (expense), net
|
|
(1,481
|
)
|
|
|
(7,625
|
)
|
|
|
41,477
|
|
|
|
(4,533
|
)
|
|
Loss before income taxes
|
|
(228,671
|
)
|
|
|
(324,904
|
)
|
|
|
(792,895
|
)
|
|
|
(1,061,344
|
)
|
|
Income tax benefit (expense)
|
|
1,296
|
|
|
|
(244
|
)
|
|
|
(61
|
)
|
|
|
(2,899
|
)
|
|
Net loss
|
$
|
(227,375
|
)
|
|
$
|
(325,148
|
)
|
|
$
|
(792,956
|
)
|
|
$
|
(1,064,243
|
)
|
|
Net loss per share attributable to Class A, Class B, and Class
C
common stockholders (Note 3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.16
|
)
|
|
$
|
(0.25
|
)
|
|
$
|
(0.58
|
)
|
|
$
|
(0.83
|
)
|
|
Diluted
|
$
|
(0.16
|
)
|
|
$
|
(0.25
|
)
|
|
$
|
(0.58
|
)
|
|
$
|
(0.83
|
)
|
|
Weighted average shares used in computation of net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1,393,358
|
|
|
|
1,309,918
|
|
|
|
1,364,327
|
|
|
|
1,277,293
|
|
|
Diluted
|
|
1,393,358
|
|
|
|
1,309,918
|
|
|
|
1,364,327
|
|
|
|
1,277,293
|
|
See Notes to Consolidated Financial Statements.
6
Snap Inc.
Consolidated
Statements of Comprehensive Income (Loss)
(in thousands)
(unaudited)
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
Net loss
|
$
|
(227,375
|
)
|
|
$
|
(325,148
|
)
|
|
$
|
(792,956
|
)
|
|
$
|
(1,064,243
|
)
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on marketable securities, net of tax
|
|
(12
|
)
|
|
|
71
|
|
|
|
609
|
|
|
|
564
|
|
|
Foreign currency translation
|
|
(9,263
|
)
|
|
|
(1,808
|
)
|
|
|
(10,929
|
)
|
|
|
(8,251
|
)
|
|
Total other comprehensive income (loss), net of tax
|
|
(9,275
|
)
|
|
|
(1,737
|
)
|
|
|
(10,320
|
)
|
|
|
(7,687
|
)
|
|
Total comprehensive income (loss)
|
$
|
(236,650
|
)
|
|
$
|
(326,885
|
)
|
|
$
|
(803,276
|
)
|
|
$
|
(1,071,930
|
)
|
See Notes to Consolidated Financial Statements.
7
Snap Inc.
Consolidated Balance Sheets
(in thousands, except par value)
|
|
September 30,
2019
|
|
|
December 31,
2018
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
728,828
|
|
|
$
|
387,149
|
|
|
Marketable securities
|
|
1,531,902
|
|
|
|
891,914
|
|
|
Accounts receivable, net of allowance
|
|
374,090
|
|
|
|
354,965
|
|
|
Prepaid expenses and other current assets
|
|
42,243
|
|
|
|
41,900
|
|
|
Total current assets
|
|
2,677,063
|
|
|
|
1,675,928
|
|
|
Property and equipment, net
|
|
177,073
|
|
|
|
212,560
|
|
|
Operating lease right-of-use assets
|
|
250,225
|
|
|
|
—
|
|
|
Intangible assets, net
|
|
72,371
|
|
|
|
126,054
|
|
|
Goodwill
|
|
621,758
|
|
|
|
632,370
|
|
|
Other assets
|
|
65,882
|
|
|
|
67,194
|
|
|
Total assets
|
$
|
3,864,372
|
|
|
$
|
2,714,106
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Accounts payable
|
$
|
56,572
|
|
|
$
|
30,876
|
|
|
Operating lease liabilities
|
|
49,725
|
|
|
|
—
|
|
|
Accrued expenses and other current liabilities
|
|
262,766
|
|
|
|
261,815
|
|
|
Total current liabilities
|
|
369,063
|
|
|
|
292,691
|
|
|
Convertible senior notes, net
|
|
880,391
|
|
|
|
—
|
|
|
Operating lease liabilities, noncurrent
|
|
284,798
|
|
|
|
—
|
|
|
Other liabilities
|
|
5,705
|
|
|
|
110,416
|
|
|
Total liabilities
|
|
1,539,957
|
|
|
|
403,107
|
|
|
Commitments and contingencies (Note 8)
|
|
|
|
|
|
|
|
|
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, 1,132,915 shares issued
and outstanding
at September 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, 32,057 shares issued and outstanding at
September 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, 229,564 shares issued and outstanding at
September 30, 2019.
|
|
2
|
|
|
|
2
|
|
|
Additional paid-in capital
|
|
9,036,801
|
|
|
|
8,220,417
|
|
|
Accumulated other comprehensive income (loss)
|
|
(7,173
|
)
|
|
|
3,147
|
|
|
Accumulated deficit
|
|
(6,705,226
|
)
|
|
|
(5,912,578
|
)
|
|
Total stockholders’ equity
|
|
2,324,415
|
|
|
|
2,310,999
|
|
|
Total liabilities and stockholders’ equity
|
$
|
3,864,372
|
|
|
$
|
2,714,106
|
|
See Notes to Consolidated Financial Statements.
8
Snap Inc.
Consolidated
Statements of Stockholders’ Equity
(in thousands)
(unaudited)
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
Class A non-voting common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period
|
|
1,096,653
|
|
|
|
11
|
|
|
|
958,801
|
|
|
|
10
|
|
|
|
999,304
|
|
|
$
|
10
|
|
|
|
883,022
|
|
|
$
|
9
|
|
|
Shares issued in connection with exercise of stock options under
stock-based compensation plans
|
|
1,300
|
|
|
|
—
|
|
|
|
262
|
|
|
|
—
|
|
|
|
3,024
|
|
|
|
—
|
|
|
|
15,511
|
|
|
|
—
|
|
|
Issuance of Class A non-voting common stock for vesting of
restricted stock units and restricted stock awards, net
|
|
19,055
|
|
|
|
(1
|
)
|
|
|
15,252
|
|
|
|
(1
|
)
|
|
|
67,336
|
|
|
|
—
|
|
|
|
42,538
|
|
|
|
—
|
|
|
Conversion of Class B voting common stock to Class A non-voting
common stock
|
|
15,907
|
|
|
|
1
|
|
|
|
1,751
|
|
|
|
—
|
|
|
|
63,251
|
|
|
|
1
|
|
|
|
34,995
|
|
|
|
—
|
|
|
Balance, end of period
|
|
1,132,915
|
|
|
$
|
11
|
|
|
|
976,066
|
|
|
$
|
9
|
|
|
|
1,132,915
|
|
|
$
|
11
|
|
|
|
976,066
|
|
|
$
|
9
|
|
|
Class B voting common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period
|
|
47,582
|
|
|
|
—
|
|
|
|
94,471
|
|
|
|
1
|
|
|
|
93,846
|
|
|
|
1
|
|
|
|
122,564
|
|
|
|
1
|
|
|
Shares issued in connection with exercise of stock options under
stock-based compensation plans
|
|
373
|
|
|
|
—
|
|
|
|
224
|
|
|
|
—
|
|
|
|
1,162
|
|
|
|
—
|
|
|
|
3,201
|
|
|
|
—
|
|
|
Issuance of Class B voting common stock for vesting of restricted
stock units, net
|
|
9
|
|
|
|
—
|
|
|
|
717
|
|
|
|
—
|
|
|
|
300
|
|
|
|
—
|
|
|
|
2,891
|
|
|
|
—
|
|
|
Conversion of Class B voting common stock to Class A non-voting
common stock
|
|
(15,907
|
)
|
|
|
—
|
|
|
|
(1,751
|
)
|
|
|
—
|
|
|
|
(63,251
|
)
|
|
|
(1
|
)
|
|
|
(34,995
|
)
|
|
|
—
|
|
|
Balance, end of period
|
|
32,057
|
|
|
|
—
|
|
|
|
93,661
|
|
|
|
1
|
|
|
|
32,057
|
|
|
|
—
|
|
|
|
93,661
|
|
|
|
1
|
|
|
Class C voting common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period
|
|
227,914
|
|
|
|
2
|
|
|
|
219,891
|
|
|
|
2
|
|
|
|
224,611
|
|
|
|
2
|
|
|
|
216,616
|
|
|
|
2
|
|
|
Issuance of Class C voting common stock for settlement of
restricted stock units, net
|
|
1,650
|
|
|
|
—
|
|
|
|
1,600
|
|
|
|
—
|
|
|
|
4,953
|
|
|
|
—
|
|
|
|
4,875
|
|
|
|
—
|
|
|
Balance, end of period
|
|
229,564
|
|
|
|
2
|
|
|
|
221,491
|
|
|
|
2
|
|
|
|
229,564
|
|
|
|
2
|
|
|
|
221,491
|
|
|
|
2
|
|
|
Additional paid-in capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period
|
|
—
|
|
|
|
8,592,434
|
|
|
|
—
|
|
|
|
7,971,610
|
|
|
|
—
|
|
|
|
8,220,417
|
|
|
|
—
|
|
|
|
7,634,825
|
|
|
Stock-based compensation expense
|
|
—
|
|
|
|
161,228
|
|
|
|
—
|
|
|
|
126,809
|
|
|
|
—
|
|
|
|
519,358
|
|
|
|
—
|
|
|
|
416,439
|
|
|
Shares issued in connection with exercise of stock options under
stock-based compensation plans
|
|
—
|
|
|
|
7,794
|
|
|
|
—
|
|
|
|
100
|
|
|
|
—
|
|
|
|
14,768
|
|
|
|
—
|
|
|
|
47,806
|
|
|
Issuance of Class A non-voting common stock in connection with
acquisitions and divestitures
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,913
|
|
|
|
—
|
|
|
|
—
|
|
|
Conversion of Class B voting common stock to Class A non-voting
common stock
|
|
—
|
|
|
|
(1
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
—
|
|
|
|
—
|
|
|
Stock repurchases from employees for tax
withholdings
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(551
|
)
|
|
Equity component of convertible senior notes, net
|
|
—
|
|
|
|
377,432
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
377,432
|
|
|
|
—
|
|
|
|
—
|
|
|
Purchase of capped calls
|
|
—
|
|
|
|
(102,086
|