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press release

July 23, 2019, 4:10 p.m. EDT

Snap Inc. Announces Second Quarter 2019 Financial Results

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. /zigman2/quotes/205087158/composite SNAP -1.89% 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.
     
  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.
 
  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.
 
  June 30,   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   11       10  
Class B voting common stock, $0.00001 par value. 700,000 shares authorized,         1  
Class C voting common stock, $0.00001 par value. 260,888 shares authorized,   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  
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
       
  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 )
SUPPLEMENTAL FINANCIAL INFORMATION AND BUSINESS METRICS
 
  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.
 
  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/

SOURCE: Snap Inc.

Investors and Analysts:
ir@snap.com Press:
press@snap.com

Copyright Business Wire 2019

/zigman2/quotes/205087158/composite
US : U.S.: NYSE
$ 13.52
-0.26 -1.89%
Volume: 39.06M
Oct. 18, 2019 6:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$18.65 billion
Rev. per Employee
$409,309
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