SNAP
$19.17
Snap
$.23
1.21%
Earnings Details
1st Quarter March 2020
Tuesday, April 21, 2020 4:10:00 PM
Tweet Share Watch
Summary

Snap Beats

Snap (SNAP) reported a 1st Quarter March 2020 loss of $0.08 per share on revenue of $462.5 million. The consensus estimate was a loss of $0.07 per share on revenue of $426.9 million. The Earnings Whisper number was for a loss of $0.09 per share. Revenue grew 44.3% on a year-over-year basis.

Results
Reported Earnings
($0.08)
Earnings Whisper
($0.09)
Consensus Estimate
($0.07)
Reported Revenue
$462.5 Mil
Revenue Estimate
$426.9 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Snap Inc. Announces First Quarter 2020 Financial Results

Daily Active Users increased 20% year-over-year to 229 million

First quarter revenue increased 44% year-over-year to $462 million

First quarter operating cash flow improved 109% year-over-year to $6 million

SANTA MONICA, Calif.--(BUSINESS WIRE)--Snap Inc. (NYSE: SNAP) today announced financial results for the quarter ended March 31, 2020.

Financial Highlights

  • Operating cash flow improved by $72 million to $6 million in Q1 2020, compared to the prior year.
  • Free Cash Flow improved by $73 million to $(5) million in Q1 2020, compared to the prior year.
  • Common shares outstanding plus shares underlying stock-based awards totaled 1,589 million at March 31, 2020, compared to 1,544 million one year ago.
  • Revenue increased 44% to $462 million in Q1 2020, compared to the prior year.
  • Net loss improved $4 million to $(306) million in Q1 2020, compared to the prior year.
  • Adjusted EBITDA improved $42 million to $(81) million in Q1 2020, compared to the prior year.

“We are grateful for the opportunity to serve our community and partners during this difficult time,” said Evan Spiegel, CEO. “Snapchat is helping people stay close to their friends and family while they are separated physically, and I am proud of our team for overcoming the many challenges of working from home during this time while we continue to grow our business and support those who are impacted by COVID-19.”

 

Three Months Ended March 31,

 

 

Percent

 

 

2020

 

 

2019

 

 

Change

 

(Unaudited)

(in thousands, except per share amounts)

 

Cash provided by (used in) operating activities

$

6,283

 

 

$

(66,178

)

 

 

109

%

Free Cash Flow

$

(4,608

)

 

$

(77,992

)

 

 

94

%

Common shares outstanding plus shares underlying stock-based awards

 

1,588,593

 

 

 

1,543,986

 

 

 

3

%

Operating loss

$

(286,364

)

 

$

(316,061

)

 

 

(9

)%

Revenue

$

462,478

 

 

$

320,426

 

 

 

44

%

Net loss

$

(305,936

)

 

$

(310,407

)

 

 

(1

)%

Adjusted EBITDA

$

(81,237

)

 

$

(123,449

)

 

 

34

%

Diluted net loss per share attributable to common stockholders

$

(0.21

)

 

$

(0.23

)

 

 

(7

)%

Non-GAAP diluted net loss per share

$

(0.08

)

 

$

(0.10

)

 

 

(18

)%

Q1 2020 Summary & Key Highlights

Daily Active User growth accelerated to 20% year-over-year and we saw increased engagement across key metrics:

  • DAUs were 229 million in Q1 2020, an increase of 39 million or 20% 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, more than 4 billion Snaps were created each day in Q1 2020.

We continue to invest in our Discover platform as a destination for content that entertains and informs:

  • Total daily time spent by Snapchatters watching Discover content increased by over 35% year-over-year in Q1 2020.
  • Total daily time spent by Snapchatters watching Shows more than doubled compared to Q1 2019.
  • In Q1 2020, over 60 Shows reached a monthly audience of over 10 million viewers, up from 50 Shows in Q4 2019.
  • Over 20 million Snapchatters have watched our new Snap Original “Nikita Unfiltered” since its launch in March 2020.
  • We announced “Will From Home”, our new Snap Original that features Will Smith hanging out in his garage as he shares his own shelter-in-place experience along with his friends.

We continue to invest in our camera and augmented reality platforms:

  • Over 75% of our daily active users engage with augmented reality every day on average.
  • At the end of Q1 2020, over 900,000 Lenses had been created by our community through Lens Studio, up from over 700,000 at the end of Q4 2019.
  • On average, Lenses made by our community via Lens Studio now make up over 30% of the total Snaps sent every day with a Lens, with top-performing Community Lenses reaching billions of views on Snapchat.
  • We launched Ground Transformation Lenses, which use machine learning to understand the geometry of land and transform the ground into lava or water.
  • As people turn to videoconferencing and livestreaming to connect with friends and family, we have seen more than a 30x increase in the daily downloads of Snap Camera, a desktop app which allows people to add our entire suite of Lenses to whichever video service they use.

We strengthened our ad platform to drive improved outcomes for advertisers:

  • We have doubled the amount of money committed via upfronts from advertisers in 2020 vs. 2019.
  • Direct response advertising has nearly doubled as a share of our revenue over the past two years, and represents more than half of our total revenue.
  • We launched ROAS bidding, which allows advertisers to bid in our auction based on their specified return on ad spend.
  • We launched Lens Web Builder, a web-based, augmented reality Lens production tool, which enables advertisers to create augmented reality Lenses easily and instantly.

We continue to innovate to better serve our large and engaged community:

  • We launched App Stories, which brings our popular Stories feature to apps created by third-party software developers.
  • We launched five new games globally, the most in any quarter since launch. Many of our existing partners are developing additional games just for Snap, demonstrating their excitement for our gaming platform.
  • We added over 120 partner app integrations with Snap Kit in Q1 2020.
  • The number of Snapchatters using Snap Kit on a monthly basis grew by 75% in Q1 2020 compared to Q4 2019.

We are grateful for the opportunity to help Snapchatters communicate with their loved ones amid the COVID-19 pandemic:

  • Communication with friends increased by over 30% in the last week of March compared to the last week of January, with more than a 50% increase in some of the geographies that were most impacted.
  • In honor of World Health Day, we launched a Lens in 11 languages and 33 countries to encourage people to donate to the World Health Organization’s relief efforts.
  • We have published over 700 Discover editions featuring up-to-the-minute coverage on COVID-19 from our content partners, our in-house news teams, and agencies like the CDC and WHO.

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 second 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 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 annual report on Form 10-K 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 March 31, 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 March 31,

 

 

2020

 

 

2019

 

Cash flows from operating activities

 

 

 

 

 

 

 

Net loss

$

(305,936

)

 

$

(310,407

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

21,204

 

 

 

23,319

 

Stock-based compensation

 

172,049

 

 

 

162,556

 

Deferred income taxes

 

(394

)

 

 

(266

)

Amortization of debt discount and issuance costs

 

11,563

 

 

 

 

Other

 

10,424

 

 

 

(1,917

)

Change in operating assets and liabilities, net of effect of acquisitions:

 

 

 

 

 

 

 

Accounts receivable, net of allowance

 

92,892

 

 

 

71,870

 

Prepaid expenses and other current assets

 

(12,867

)

 

 

271

 

Operating lease right-of-use assets

 

8,716

 

 

 

9,812

 

Other assets

 

(1,155

)

 

 

(368

)

Accounts payable

 

5,734

 

 

 

3,090

 

Accrued expenses and other current liabilities

 

17,910

 

 

 

(14,323

)

Operating lease liabilities

 

(13,994

)

 

 

(10,470

)

Other liabilities

 

137

 

 

 

655

 

Net cash provided by (used in) operating activities

 

6,283

 

 

 

(66,178

)

Cash flows from investing activities

 

 

 

 

 

 

 

Purchases of property and equipment

 

(10,891

)

 

 

(11,814

)

Non-marketable investments

 

(35,500

)

 

 

(2,250

)

Purchases of marketable securities

 

(552,675

)

 

 

(525,520

)

Sales of marketable securities

 

217,958

 

 

 

 

Maturities of marketable securities

 

752,685

 

 

 

458,627

 

Other

 

 

 

 

29

 

Net cash provided by (used in) investing activities

 

371,577

 

 

 

(80,928

)

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from the exercise of stock options

 

3,130

 

 

 

5,596

 

Net cash provided by financing activities

 

3,130

 

 

 

5,596

 

Change in cash, cash equivalents, and restricted cash

 

380,990

 

 

 

(141,510

)

Cash, cash equivalents, and restricted cash, beginning of period

 

521,260

 

 

 

388,974

 

Cash, cash equivalents, and restricted cash, end of period

$

902,250

 

 

$

247,464

 

Supplemental disclosures

 

 

 

 

 

 

 

Cash paid for income taxes, net

$

808

 

 

$

320

 

Cash paid for interest

 

4,899

 

 

 

358

 

SNAP INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts, unaudited)

 

Three Months Ended March 31,

 

 

2020

 

 

2019

 

Revenue

$

462,478

 

 

$

320,426

 

Costs and expenses:

 

 

 

 

 

 

 

Cost of revenue

 

253,410

 

 

 

203,767

 

Research and development

 

238,613

 

 

 

216,185

 

Sales and marketing

 

122,205

 

 

 

97,882

 

General and administrative

 

134,614

 

 

 

118,653

 

Total costs and expenses

 

748,842

 

 

 

636,487

 

Operating loss

 

(286,364

)

 

 

(316,061

)

Interest income

 

8,589

 

 

 

7,816

 

Interest expense

 

(15,113

)

 

 

(756

)

Other income (expense), net

 

(12,389

)

 

 

(1,127

)

Loss before income taxes

 

(305,277

)

 

 

(310,128

)

Income tax benefit (expense)

 

(659

)

 

 

(279

)

Net loss

$

(305,936

)

 

$

(310,407

)

Net loss per share attributable to Class A, Class B, and Class C common stockholders:

 

 

 

 

 

 

 

Basic

$

(0.21

)

 

$

(0.23

)

Diluted

$

(0.21

)

 

$

(0.23

)

Weighted average shares used in computation of net loss per share:

 

 

 

 

 

 

 

Basic

 

1,426,305

 

 

 

1,340,615

 

Diluted

 

1,426,305

 

 

 

1,340,615

 

SNAP INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except par value)

 

March 31, 2020

 

 

December 31, 2019

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

$

901,342

 

 

$

520,317

 

Marketable securities

 

1,180,533

 

 

 

1,592,488

 

Accounts receivable, net of allowance

 

394,053

 

 

 

492,194

 

Prepaid expenses and other current assets

 

51,943

 

 

 

38,987

 

Total current assets

 

2,527,871

 

 

 

2,643,986

 

Property and equipment, net

 

173,751

 

 

 

173,667

 

Operating lease right-of-use assets

 

267,479

 

 

 

275,447

 

Intangible assets, net

 

83,900

 

 

 

92,121

 

Goodwill

 

756,389

 

 

 

761,153

 

Other assets

 

89,120

 

 

 

65,550

 

Total assets

$

3,898,510

 

 

$

4,011,924

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Accounts payable

$

54,068

 

 

$

46,886

 

Operating lease liabilities

 

40,189

 

 

 

42,179

 

Accrued expenses and other current liabilities

 

428,934

 

 

 

410,610

 

Total current liabilities

 

523,191

 

 

 

499,675

 

Convertible senior notes, net

 

903,339

 

 

 

891,776

 

Operating lease liabilities, noncurrent

 

289,754

 

 

 

303,178

 

Other liabilities

 

57,319

 

 

 

57,382

 

Total liabilities

 

1,773,603

 

 

 

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, 1,182,527 shares issued and outstanding

at March 31, 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, 24,279 shares issued and outstanding at March 31, 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, 232,783 shares issued and outstanding at March 31, 2020.

 

2

 

 

 

2

 

Additional paid-in capital

 

9,380,435

 

 

 

9,205,256

 

Accumulated other comprehensive income (loss)

 

(2,896

)

 

 

573

 

Accumulated deficit

 

(7,252,646

)

 

 

(6,945,930

)

Total stockholders’ equity

 

2,124,907

 

 

 

2,259,913

 

Total liabilities and stockholders’ equity

$

3,898,510

 

 

$

4,011,924

 

SNAP INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(in thousands, unaudited)

 

Three Months Ended March 31,

 

 

2020

 

 

2019

 

Free Cash Flow reconciliation:

 

 

 

 

 

 

 

Net cash provided by (used) in operating activities

$

6,283

 

 

$

(66,178

)

Less:

 

 

 

 

 

 

 

Purchases of property and equipment

 

(10,891

)

 

 

(11,814

)

Free Cash Flow

$

(4,608

)

 

$

(77,992

)

 

Three Months Ended March 31,

 

 

2020

 

 

2019

 

Adjusted EBITDA reconciliation:

 

 

 

 

 

 

 

Net loss

$

(305,936

)

 

$

(310,407

)

Add (deduct):

 

 

 

 

 

 

 

Interest income

 

(8,589

)

 

 

(7,816

)

Interest expense

 

15,113

 

 

 

756

 

Other (income) expense, net

 

12,389

 

 

 

1,127

 

Income tax (benefit) expense

 

659

 

 

 

279

 

Depreciation and amortization

 

21,204

 

 

 

23,319

 

Stock-based compensation expense

 

172,049

 

 

 

162,556

 

Payroll tax expense related to stock-based compensation

 

11,874

 

 

 

6,737

 

Adjusted EBITDA

$

(81,237

)

 

$

(123,449

)

Total depreciation and amortization expense by function:

 

 

Three Months Ended March 31,

 

 

2020

 

 

2019

 

Depreciation and amortization expense:

 

 

 

 

 

 

 

Cost of revenue

$

5,525

 

 

$

6,146

 

Research and development

 

8,915

 

 

 

8,650

 

Sales and marketing

 

3,166

 

 

 

4,015

 

General and administrative

 

3,598

 

 

 

4,508

 

Total

$

21,204

 

 

$

23,319

 

Total stock-based compensation expense by function:

 

 

Three Months Ended March 31,

 

 

2020

 

 

2019

 

Stock-based compensation expense:

 

 

 

 

 

 

 

Cost of revenue

$

1,782

 

 

$

1,849

 

Research and development

 

118,317

 

 

 

112,242

 

Sales and marketing

 

24,806

 

 

 

17,760

 

General and administrative

 

27,144

 

 

 

30,705

 

Total

$

172,049

 

 

$

162,556

 

SNAP INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)

(in thousands, except per share amounts, unaudited)

 

Three Months Ended March 31,

 

 

2020

 

 

2019

 

Non-GAAP net loss reconciliation:

 

 

 

 

 

 

 

Net loss

$

(305,936

)

 

$

(310,407

)

Amortization of intangible assets

 

7,980

 

 

 

10,369

 

Stock-based compensation expense

 

172,049

 

 

 

162,556

 

Payroll tax expense related to stock-based compensation

 

11,873

 

 

 

6,737

 

Income tax adjustments

 

(59

)

 

 

(115

)

Non-GAAP net loss

$

(114,093

)

 

$

(130,860

)

 

 

 

 

 

 

 

 

Weighted-average common shares - Diluted

 

1,426,305

 

 

 

1,340,615

 

 

 

 

 

 

 

 

 

Non-GAAP diluted net loss per share reconciliation:

 

 

 

 

 

 

 

Diluted net loss per share

$

(0.21

)

 

$

(0.23

)

Non-GAAP adjustment to net loss

 

0.13

 

 

 

0.13

 

Non-GAAP diluted net loss per share

$

(0.08

)

 

$

(0.10

)

SNAP INC.

SUPPLEMENTAL FINANCIAL INFORMATION AND BUSINESS METRICS

(dollars and shares in thousands, except as noted below, unaudited)

 

 

Q4 2018

 

 

Q1 2019

 

 

Q2 2019

 

 

 

 

Q3 2019

 

 

Q4 2019

 

 

Q1 2020

 

Cash Flows and Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

(126,054

)

 

$

(66,178

)

 

$

(95,789

)

 

 

 

$

(76,149

)

 

$

(66,842

)

 

$

6,283

 

Net cash provided by (used in) operating activities - YoY (year-over-year)

 

 

28

%

 

 

71

%

 

 

52

%

 

 

 

 

43

%

 

 

(47

)%

 

 

109

%

Net cash provided by (used in) operating activities - TTM (trailing twelve months)

 

$

(689,924

)

 

$

(524,121

)

 

$

(420,564

)

 

 

 

$

(364,170

)

 

$

(304,958

)

 

$

(232,497

)

Purchases of property and equipment

 

$

(22,741

)

 

$

(11,814

)

 

$

(7,633

)

 

 

 

$

(7,938

)

 

$

(9,093

)

 

$

(10,891

)

Purchases of property and equipment - YoY

 

 

(7

)%

 

 

67

%

 

 

78

%

 

 

 

 

70

%

 

 

60

%

 

 

8

%

Purchases of property and equipment - TTM

 

$

(120,242

)

 

$

(95,741

)

 

$

(68,473

)

 

 

 

$

(50,126

)

 

$

(36,478

)

 

$

(35,555

)

Free Cash Flow

 

$

(148,795

)

 

$

(77,992

)

 

$

(103,422

)

 

 

 

$

(84,087

)

 

$

(75,935

)

 

$

(4,608

)

Free Cash Flow - YoY

 

 

25

%

 

 

71

%

 

 

56

%

 

 

 

 

47

%

 

 

49

%

 

 

94

%

Free Cash Flow - TTM

 

$

(810,166

)

 

$

(619,862

)

 

$

(489,037

)

 

 

 

$

(414,296

)

 

$

(341,436

)

 

$

(268,052

)

Common shares outstanding

 

 

1,317,760

 

 

 

1,334,931

 

 

 

1,372,149

 

 

 

 

 

1,389,395

 

 

 

1,415,796

 

 

 

1,439,589

 

Common shares outstanding - YoY

 

 

8

%

 

 

6

%

 

 

8

%

 

 

 

 

8

%

 

 

7

%

 

 

8

%

Shares underlying stock-based awards

 

 

188,863

 

 

 

209,055

 

 

 

180,585

 

 

 

 

 

175,813

 

 

 

160,239

 

 

 

149,004

 

Shares underlying stock-based awards - YoY

 

 

(18

)%

 

 

3

%

 

 

(12

)%

 

 

 

 

(5

)%

 

 

(15

)%

 

 

(29

)%

Total common shares outstanding plus shares underlying stock-based awards

 

 

1,506,623

 

 

 

1,543,986

 

 

 

1,552,734

 

 

 

 

 

1,565,208

 

 

 

1,576,035

 

 

 

1,588,593

 

Total common shares outstanding plus shares underlying stock-based awards - YoY

 

 

4

%

 

 

6

%

 

 

5

%

 

 

 

 

6

%

 

 

5

%

 

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Results of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

389,822

 

 

$

320,426

 

 

$

388,021

 

 

 

 

$

446,199

 

 

$

560,889

 

 

$

462,477

 

Revenue - YoY

 

 

36

%

 

 

39

%

 

 

48

%

 

 

 

 

50

%

 

 

44

%

 

 

44

%

Revenue - TTM

 

$

1,180,446

 

 

$

1,270,206

 

 

$

1,395,964

 

 

 

 

$

1,544,468

 

 

$

1,715,535

 

 

$

1,857,586

 

Revenue by region(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

268,858

 

 

$

225,705

 

 

$

260,017

 

 

 

 

$

316,028

 

 

$

382,029

 

 

$

315,650

 

North America - YoY

 

 

23

%

 

 

32

%

 

 

47

%

 

 

 

 

52

%

 

 

42

%

 

 

40

%

North America - TTM

 

$

824,233

 

 

$

879,450

 

 

$

962,057

 

 

 

 

$

1,070,608

 

 

$

1,183,779

 

 

$

1,273,724

 

Europe

 

$

62,470

 

 

$

47,448

 

 

$

60,633

 

 

 

 

$

68,553

 

 

$

91,873

 

 

$

76,498

 

Europe - YoY

 

 

56

%

 

 

45

%

 

 

51

%

 

 

 

 

36

%

 

 

47

%

 

 

61

%

Europe - TTM

 

$

185,910

 

 

$

200,637

 

 

$

221,029

 

 

 

 

$

239,104

 

 

$

268,507

 

 

$

297,557

 

Rest of World

 

$

58,495

 

 

$

47,273

 

 

$

67,374

 

 

 

 

$

61,618

 

 

$

86,987

 

 

$

70,329

 

Rest of World - YoY

 

 

122

%

 

 

72

%

 

 

51

%

 

 

 

 

55

%

 

 

49

%

 

 

49

%

Rest of World - TTM

 

$

170,305

 

 

$

190,120

 

 

$

212,882

 

 

 

 

$

234,760

 

 

$

263,252

 

 

$

286,308

 

Operating loss

 

$

(194,707

)

 

$

(316,061

)

 

$

(304,818

)

 

 

 

$

(228,853

)

 

$

(253,596

)

 

$

(286,364

)

Operating loss - YoY

 

 

46

%

 

 

19

%

 

 

15

%

 

 

 

 

29

%

 

 

(30

)%

 

 

9

%

Operating loss - Margin

 

 

(50

)%

 

 

(99

)%

 

 

(79

)%

 

 

 

 

(51

)%

 

 

(45

)%

 

 

(62

)%

Operating loss - TTM

 

$

(1,268,450

)

 

$

(1,191,981

)

 

$

(1,138,957

)

 

 

 

$

(1,044,439

)

 

$

(1,103,328

)

 

$

(1,073,631

)

Net loss

 

$

(191,668

)

 

$

(310,407

)

 

$

(255,174

)

 

 

 

$

(227,375

)

 

$

(240,704

)

 

$

(305,936

)

Net loss - YoY

 

 

45

%

 

 

20

%

 

 

28

%

 

 

 

 

30

%

 

 

(26

)%

 

 

1

%

Net loss - TTM

 

$

(1,255,911

)

 

$

(1,180,533

)

 

$

(1,082,397

)

 

 

 

$

(984,624

)

 

$

(1,033,660

)

 

$

(1,029,189

)

Adjusted EBITDA

 

 

(50,363

)

 

 

(123,449

)

 

 

(78,713

)

 

 

 

 

(42,375

)

 

 

42,307

 

 

 

(81,237

)

Adjusted EBITDA - YoY

 

 

68

%

 

 

43

%

 

 

53

%

 

 

 

 

69

%

 

 

184

%

 

 

34

%

Adjusted EBITDA - Margin(2)

 

 

(13

)%

 

 

(39

)%

 

 

(20

)%

 

 

 

 

(9

)%

 

 

8

%

 

 

(18

)%

Adjusted EBITDA - TTM

 

$

(575,637

)

 

$

(481,221

)

 

$

(390,902

)

 

 

 

$

(294,900

)

 

$

(202,230

)

 

$

(160,018

)

(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)

 

 

Q4 2018

 

 

Q1 2019

 

 

Q2 2019

 

 

Q3 2019

 

 

Q4 2019

 

 

Q1 2020

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DAU (in millions)

 

 

186

 

 

 

190

 

 

 

203

 

 

 

210

 

 

 

218

 

 

 

229

 

DAU - YoY

 

 

(0

)%

 

 

(0

)%

 

 

8

%

 

 

13

%

 

 

17

%

 

 

20

%

DAU by region (in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

79

 

 

 

80

 

 

 

83

 

 

 

84

 

 

 

86

 

 

 

88

 

North America - YoY

 

 

(1

)%

 

 

(1

)%

 

 

3

%

 

 

6

%

 

 

9

%

 

 

10

%

Europe

 

 

60

 

 

 

61

 

 

 

64

 

 

 

65

 

 

 

67

 

 

 

70

 

Europe - YoY

 

 

(1

)%

 

 

(2

)%

 

 

5

%

 

 

9

%

 

 

12

%

 

 

14

%

Rest of World

 

 

47

 

 

 

49

 

 

 

56

 

 

 

61

 

 

 

64

 

 

 

71

 

Rest of World - YoY

 

 

1

%

 

 

2

%

 

 

21

%

 

 

28

%

 

 

36

%

 

 

45

%

ARPU

 

$

2.09

 

 

$

1.68

 

 

$

1.91

 

 

$

2.12

 

 

$

2.58

 

 

$

2.02

 

ARPU - YoY

 

 

37

%

 

 

39

%

 

 

37

%

 

 

33

%

 

 

23

%

 

 

20

%

ARPU by region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

3.38

 

 

$

2.81

 

 

$

3.14

 

 

$

3.75

 

 

$

4.42

 

 

$

3.57

 

North America - YoY

 

 

23

%

 

 

34

%

 

 

42

%

 

 

43

%

 

 

31

%

 

 

27

%

Europe

 

$

1.04

 

 

$

0.77

 

 

$

0.95

 

 

$

1.05

 

 

$

1.37

 

 

$

1.09

 

Europe - YoY

 

 

57

%

 

 

47

%

 

 

43

%

 

 

24

%

 

 

31

%

 

 

41

%

Rest of World

 

$

1.24

 

 

$

0.97

 

 

$

1.20

 

 

$

1.01

 

 

$

1.35

 

 

$

1.00

 

Rest of World - YoY

 

 

120

%

 

 

68

%

 

 

25

%

 

 

21

%

 

 

9

%

 

 

3

%

Employees (full-time; excludes part-time, contractors, and temporary personnel)

 

 

2,884

 

 

 

2,818

 

 

 

2,734

 

 

 

2,908

 

 

 

3,195

 

 

 

3,427

 

Employees - YoY

 

 

(6

)%

 

 

(6

)%

 

 

(5

)%

 

 

0

%

 

 

11

%

 

 

22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

9,888

 

 

$

6,146

 

 

$

5,642

 

 

$

4,580

 

 

$

4,903

 

 

$

5,525

 

Research and development

 

 

4,547

 

 

 

8,650

 

 

 

7,188

 

 

 

8,632

 

 

 

8,738

 

 

 

8,915

 

Sales and marketing

 

 

3,475

 

 

 

4,015

 

 

 

3,045

 

 

 

3,109

 

 

 

3,087

 

 

 

3,166

 

General and administrative

 

 

4,772

 

 

 

4,508

 

 

 

6,785

 

 

 

4,325

 

 

 

3,892

 

 

 

3,598

 

Total

 

$

22,682

 

 

$

23,319

 

 

$

22,660

 

 

$

20,646

 

 

$

20,620

 

 

$

21,204

 

Depreciation and amortization expense - YoY

 

 

21

%

 

 

8

%

 

 

1

%

 

 

(17

)%

 

 

(9

)%

 

 

(9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

1,283

 

 

$

1,849

 

 

$

1,786

 

 

$

1,332

 

 

$

1,398

 

 

$

1,782

 

Research and development

 

 

75,086

 

 

 

112,242

 

 

 

132,610

 

 

 

108,176

 

 

 

111,611

 

 

 

118,317

 

Sales and marketing

 

 

20,795

 

 

 

17,760

 

 

 

26,474

 

 

 

23,333

 

 

 

25,788

 

 

 

24,806

 

General and administrative

 

 

24,608

 

 

 

30,705

 

 

 

34,704

 

 

 

28,387

 

 

 

27,858

 

 

 

27,144

 

Total

 

$

121,772

 

 

$

162,556

 

 

$

195,574

 

 

$

161,228

 

 

$

166,655

 

 

$

172,049

 

Stock-based compensation expense - YoY

 

 

(33

)%

 

 

22

%

 

 

25

%

 

 

27

%

 

 

37

%

 

 

6

%

 

Investors and Analysts:
ir@snap.com

Press:
press@snap.com

Source: Snap Inc.