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Investor Alert

press release

Oct. 20, 2020, 4:10 p.m. EDT

Snap Inc. Announces Third Quarter 2020 Financial Results

Daily Active Users increased 18% year-over-year to 249 millionRevenue increased 52% year-over-year to $679 millionOperating cash flow improved 28% year-over-year to $(55) million

Snap Inc. /zigman2/quotes/205087158/composite SNAP +0.31% today announced financial results for the quarter ended September 30, 2020.

Financial Highlights

  • Operating cash flow improved by $21 million to $(55) million in Q3 2020, compared to the prior year.

  • Free Cash Flow improved by $15 million to $(70) million in Q3 2020, compared to the prior year.

  • Common shares outstanding plus shares underlying stock-based awards totaled 1,624 million at September 30, 2020, compared to 1,565 million one year ago.

  • Revenue increased 52% to $679 million in Q3 2020, compared to the prior year.

  • Net loss was $(200) million in Q3 2020, compared to $(227) million in the prior year.

  • Adjusted EBITDA was $56 million in Q3 2020, compared to $(42) million in the prior year.

“Our focus on delivering value for our community and advertising partners is yielding positive results during this challenging time. We’re excited about the growth of our business in Q3 as we continue to make long-term investments in our future,” said Evan Spiegel, CEO. “The adoption of augmented reality is happening faster than we had previously anticipated, and we are working together as a team to execute on the many opportunities in front of us.”

  Three Months Ended   Percent   Nine Months Ended   Percent
  2020   2019   Change   2020   2019   Change
(Unaudited) (in thousands, except per share amounts)
Cash used in operating activities $ (54,828 )   $ (76,149 )   (28 )%   $ (115,099 )   $ (238,116 )   (52 )%
Free Cash Flow $ (69,555 )   $ (84,087 )   17 %   $ (156,484 )   $ (265,501 )   41 %
Common shares outstanding plus shares underlying stock-based awards   1,623,630       1,565,208     4 %     1,623,630       1,565,208     4 %
Operating loss $ (167,864 )   $ (228,853 )   (27 )%   $ (764,836 )   $ (849,732 )   (10 )%
Revenue $ 678,668     $ 446,199     52 %   $ 1,595,304     $ 1,154,646     38 %
Net loss $ (199,853 )   $ (227,375 )   (12 )%   $ (831,740 )   $ (792,956 )   5 %
Adjusted EBITDA $ 56,361     $ (42,375 )   233 %   $ (120,446 )   $ (244,537 )   51 %
Diluted net loss per share attributable to common stockholders $ (0.14 )   $ (0.16 )   (16 )%   $ (0.58 )   $ (0.58 )   (1 )%
Non-GAAP diluted net income (loss) per share $ 0.01     $ (0.04 )   120 %   $ (0.16 )   $ (0.20 )   (20 )%

Q3 2020 Summary & Key Highlights

Daily Active Users grew by 18% year-over-year and we saw increased engagement across key metrics:

  • DAUs were 249 million in Q3 2020, an increase of 39 million or 18% year-over-year.

  • DAUs increased sequentially and year-over-year on each of iOS and Android platforms.

  • The average number of Snaps created every day grew 25% year-over-year.

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

  • Total daily time spent by Snapchatters watching Shows increased by over 50% year-over-year in Q3 2020.

  • The daily average number of Snapchatters in India watching Discover content increased by nearly 50% sequentially in Q3 2020.

  • More than 40% of the US Gen Z population watched sports Discover content on Snapchat last month.

  • SportsCenter viewership on Snapchat increased by 80% from July to September.

  • We launched a new unscripted series called “The Solution Committee” in which Jaden Smith seeks out the help of young activists and celebrity friends to explore racial and social justice issues.

  • Our “VS The World” docuseries franchise launched its second season, featuring Conor McGregor, and reached over 14 million viewers.

  • We launched a new unscripted series called “Coach Kev” in which Kevin Hart inspires Snapchatters to live their best lives through bursts of inspiration, positivity, and wisdom.

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

  • As of the end of Q3 2020, over 1.5 million Lenses have been created by our community through Lens Studio.

  • The ‘Raise Your Voice’ Lens generated over 70 million impressions and over 48,000 hours of playtime, demonstrating the power of AR as a format in honoring the legacy of important movements, such as the March on Washington in 1963.

  • Our ‘Anime Style’ Lens powered by real time machine learning was engaged with 3 billion times in its first week.

  • We added 2D body tracking technology in Lens Studio, allowing Lens creators to make AR experiences for the full human body.

  • We released Lens Favorites, a new feature that allows Snapchatters to pin their favorite Lenses for future use, to our Android users.

  • We launched our first Local Lens experience called City Painter, allowing Snapchatters to virtually paint the shared digital space on Carnaby Street in London.

We strengthened our ad platform and products while engaging with advertisers:

  • We partnered with Champs Sports, Clearly, Essie, Hoka One One, Kohl’s, Levi’s, Jordan Brand, and Sally Hansen to launch augmented reality-powered virtual try-on experiences.

  • We launched ‘Meet the Snapchat Generation,’ our first-ever global business-to-business marketing campaign highlighting Snapchat’s unique audience.

  • We launched Platform Burst, which allows advertisers to purchase ad inventory across different formats to reach a significant portion of their target audience over a few days.

  • We launched a Snap Select gaming bundle, which is the first commercial bundle tailored to a specific category and has led to impactful partnerships with advertisers.

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

  • We introduced Creator Profiles to our community, providing Creators with a permanent profile to host their photo, video, and Lenses content, Story replies, and data analytics insights.

  • We launched Sounds on Snapchat, empowering Snapchatters to express themselves by adding licensed music from emerging and established artists to their Snaps, including music companies like Warner Music Group, Universal Music Publishing, The NMPA, and Merlin.

  • We helped over 1 million Snapchatters with voter registration for the upcoming 2020 U.S. General Election through our ‘Register to Vote’ Mini, developed in partnership with Democracy Works.

  • Our Bitmoji team launched its first-ever branded customizable Mix and Match collection, in partnership with Ralph Lauren, and millions of users globally have dressed their Bitmoji in Ralph Lauren since launch.

  • Snapchatters can now dress their Bitmoji avatars in a new collection of 19 different digital apparel and sneakers from Nike’s Jordan brand, including the new Air Jordan XXXV.

  • Our Headspace Mini, developed in partnership with Headspace, was used by 5 million users in its first month after launch and we released two new meditations in honor of World Mental Health Day.

Financial Guidance

Given the uncertainties related to the ongoing COVID-19 pandemic and the rapidly shifting macro conditions, we are not providing revenue or Adjusted EBITDA guidance for the fourth quarter of 2020.

Conference Call Information

Snap Inc. will host a conference call to discuss the results at 2:00 p.m. Pacific / 5:00 p.m. Eastern today. The live audio webcast along with supplemental information will be accessible at investor.snap.com. A recording of the webcast will also be available following the conference call.

Snap Inc. uses the investor.snap.com and snap.com/news websites as means of disclosing material non-public information and for complying with its disclosure obligation under Regulation FD.

Definitions

Free Cash Flow is defined as net cash provided by (used in) operating activities, reduced by purchases of property and equipment.

Common shares outstanding plus shares underlying stock-based awards includes common shares outstanding, restricted stock units, restricted stock awards, and outstanding stock options.

Adjusted EBITDA is defined as net income (loss), excluding interest income; interest expense; other income (expense) net; income tax benefit (expense); depreciation and amortization; stock-based compensation expense and related payroll tax expense; and certain other non-cash or non-recurring items impacting net income (loss) from time to time.

A Daily Active User (DAU) is defined as a registered Snapchat user who opens the Snapchat application at least once during a defined 24-hour period. We calculate average DAUs for a particular quarter by adding the number of DAUs on each day of that quarter and dividing that sum by the number of days in that quarter.

Average revenue per user (ARPU) is defined as quarterly revenue divided by the average DAUs.

A Monthly Active User (MAU) is defined as a registered Snapchat user who opens the Snapchat application at least once during the 30-day period ending on the calendar month-end. We calculate average Monthly Active Users for a particular quarter by calculating the average of the MAUs as of each calendar month-end in that quarter.

Addressable reach is defined as the approximate number of Snapchat users that an ad could reach over a 28-day period in a given locality. When we calculate the percentage of a demographic group that can be reached, we do so by dividing addressable reach by relevant census figures. Addressable reach and age data are subject to limitations. For more information, see Snap’s SEC filings and businesshelp.snapchat.com.

Note: For adjustments and additional information regarding the non-GAAP financial measures and other items discussed, please see “Non-GAAP Financial Measures,” “Reconciliation of GAAP to Non-GAAP Financial Measures,” and “Supplemental Financial Information and Business Metrics.”

About Snap Inc.

Snap Inc. is a camera company. We believe that reinventing the camera represents our greatest opportunity to improve the way people live and communicate. We contribute to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together. For more information, visit snap.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release, including statements regarding guidance, our future results of operations or financial condition, business strategy and plans, user growth and engagement, product initiatives, and objectives of management for future operations, and the impact of COVID-19 on our business and the economy as a whole, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “going to,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. We caution you that the foregoing may not include all of the forward-looking statements made in this press release.

You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this press release primarily on our current expectations and projections about future events and trends, including the ongoing COVID-19 pandemic that we believe may continue to affect our business, financial condition, results of operations, and prospects. These forward-looking statements are subject to risks and uncertainties related to: our financial performance; our lack of profitability to date; our ability to generate and sustain positive cash flow; our ability to attract and retain users, publishers, and advertisers; competition and new market entrants; managing our international expansion and our growth and future expenses; compliance with new laws, regulations, and executive actions; our ability to maintain, protect, and enhance our intellectual property; our ability to succeed in existing and new market segments; our ability to attract and retain qualified and key personnel; our ability to repay outstanding debt; and future acquisitions or investments, as well as risks, uncertainties, and other factors described in “Risk Factors” and elsewhere in our most recent quarterly report on Form 10-Q for the quarter ended June 30, 2020 filed with the SEC, which is available on the SEC’s website at www.sec.gov . Additional information will be made available in Snap Inc.’s quarterly report on Form 10-Q for the quarter ended September 30, 2020 and other filings that we make from time to time with the SEC. In addition, any forward-looking statements contained in this press release are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, including future developments related to the COVID-19 pandemic, except as required by law.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use the non-GAAP financial measure of Free Cash Flow, which is defined as net cash provided by (used in) operating activities, reduced by purchases of property and equipment. We believe Free Cash Flow is an important liquidity measure of the cash that is available, after capital expenditures, for operational expenses and investment in our business and is a key financial indicator used by management. Additionally, we believe that Free Cash Flow is an important measure since we use third-party infrastructure partners to host our services and therefore we do not incur significant capital expenditures to support revenue generating activities. Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.

We use the non-GAAP financial measure of Adjusted EBITDA, which is defined as net income (loss); excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation and amortization; stock-based compensation expense and related payroll tax expense; and certain other non-cash or non-recurring items impacting net income (loss) from time to time. We believe that Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude in Adjusted EBITDA.

We use the non-GAAP financial measure of non-GAAP net loss, which is defined as net income (loss); excluding amortization of intangible assets; stock-based compensation expense and related payroll tax expense; certain other non-cash or non-recurring items impacting net income (loss) from time to time; and related income tax adjustments. Non-GAAP net loss and weighted average diluted shares are then used to calculate non-GAAP diluted net loss per share. Similar to Adjusted EBITDA, we believe these measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses we exclude in the measure.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to key metrics used by our management for financial and operational decision-making. We are presenting these non-GAAP measures to assist investors in seeing our financial performance through the eyes of management, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.

For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see “Reconciliation of GAAP to Non-GAAP Financial Measures.”

Snap Inc., “Snapchat,” and our other registered and common law trade names, trademarks, and service marks are the property of Snap Inc. or our subsidiaries.

SNAP INC.
 
  Three Months Ended   Nine Months Ended
  2020   2019   2020   2019
Cash flows from operating activities              
Net loss $ (199,853 )   $ (227,375 )   $ (831,740 )   $ (792,956 )
Adjustments to reconcile net loss to net cash used in operating              
Depreciation and amortization   21,804       20,646       63,933       66,625  
Stock-based compensation   192,080       161,228       550,300       519,358  
Deferred income taxes   (1,186 )     170       (3,698 )     195  
Gain on divestiture                     (39,883 )
Amortization of debt discount and issuance costs   24,503       6,412       56,478       6,412  
Other   7,252       (1,245 )     15,369       (4,561 )
Change in operating assets and liabilities, net of effect of acquisitions:              
Accounts receivable, net of allowance   (151,856 )     (62,855 )     (43,310 )     (30,736 )
Prepaid expenses and other current assets   (10,608 )     (490 )     (19,352 )     (4,980 )
Operating lease right-of-use assets   10,054       35,633       28,307       57,254  
Other assets   3,390       2,139       2,343       4,540  
Accounts payable   3,435       4,220       11,448       28,319  
Accrued expenses and other current liabilities   61,595       23,243       94,368       16,655  
Operating lease liabilities   (15,760 )     (36,008 )     (40,739 )     (63,259 )
Other liabilities   322       (1,867 )     1,194       (1,099 )
Net cash used in operating activities   (54,828 )     (76,149 )     (115,099 )     (238,116 )
Cash flows from investing activities              
Purchases of property and equipment   (14,727 )     (7,938 )     (41,385 )     (27,385 )
Proceeds from divestiture, net                     73,796  
Non-marketable investments   (3,500 )     (1,050 )     (95,341 )     (3,750 )
Cash paid for acquisitions, net of cash acquired   (33,508 )           (53,712 )      
Purchases of marketable securities   (1,148,344 )     (1,115,358 )     (2,576,892 )     (1,924,398 )
Sales of marketable securities   155,899       24,948       373,857       102,437  
Maturities of marketable securities   668,930       411,079       1,898,176       1,193,739  
Other               (500 )     1,029  
Net cash used in investing activities   (375,250 )     (688,319 )     (495,797 )     (584,532 )
Cash flows from financing activities              
Proceeds from issuance of convertible notes, net of issuance costs         1,251,848       988,582       1,251,848  
Purchase of capped calls         (102,086 )     (100,000 )     (102,086 )
Proceeds from the exercise of stock options   2,434       7,788       26,041       14,726  
Net cash provided by financing activities   2,434       1,157,550       914,623       1,164,488  
Change in cash, cash equivalents, and restricted cash   (427,644 )     393,082       303,727       341,840  
Cash, cash equivalents, and restricted cash, beginning of period   1,252,631       337,732       521,260       388,974  
Cash, cash equivalents, and restricted cash, end of period $ 824,987     $ 730,814     $ 824,987     $ 730,814  
Supplemental disclosures              
Cash paid for income taxes, net $ 1,309     $ 643     $ 2,679     $ 564  
Cash paid for interest $ 5,113     $ 380       10,378       1,176  
SNAP INC.
 
  Three Months Ended   Nine Months Ended
  2020   2019   2020   2019
Revenue $ 678,668     $ 446,199     $ 1,595,304     $ 1,154,646  
Costs and expenses:              
Cost of revenue   293,095       223,140       796,959       642,399  
Research and development   283,639       211,599       783,115       663,983  
Sales and marketing   143,511       123,240       397,834       332,626  
General and administrative   126,287       117,073       382,232       365,370  
Total costs and expenses   846,532       675,052       2,360,140       2,004,378  
Operating loss   (167,864 )     (228,853 )     (764,836 )     (849,732 )
Interest income   2,801       10,317       16,158       25,579  
Interest expense   (28,212 )     (8,654 )     (68,052 )     (10,219 )
Other income (expense), net   (5,669 )     (1,481 )     (14,483 )     41,477  
Loss before income taxes   (198,944 )     (228,671 )     (831,213 )     (792,895 )
Income tax benefit (expense)   (909 )     1,296       (527 )     (61 )
Net loss $ (199,853 )   $ (227,375 )   $ (831,740 )   $ (792,956 )
Net loss per share attributable to Class A, Class B, and Class C common stockholders:              
Basic $ (0.14 )   $ (0.16 )   $ (0.58 )   $ (0.58 )
Diluted $ (0.14 )   $ (0.16 )   $ (0.58 )   $ (0.58 )
Weighted average shares used in computation of net loss per share:              
Basic   1,466,420       1,393,358       1,446,040       1,364,327  
Diluted   1,466,420       1,393,358       1,446,040       1,364,327  
SNAP INC.
 
  September 30,   December 31,
  (unaudited)    
Assets      
Current assets      
Cash and cash equivalents $ 824,070     $ 520,317  
Marketable securities   1,900,935       1,592,488  
Accounts receivable, net of allowance   529,872       492,194  
Prepaid expenses and other current assets   60,837       38,987  
Total current assets   3,315,714       2,643,986  
Property and equipment, net   175,199       173,667  
Operating lease right-of-use assets   269,141       275,447  
Intangible assets, net   91,796       92,121  
Goodwill   816,113       761,153  
Other assets   149,811       65,550  
Total assets $ 4,817,774     $ 4,011,924  
Liabilities and Stockholders’ Equity      
Current liabilities      
Accounts payable $ 61,978     $ 46,886  
Operating lease liabilities   40,994       42,179  
Accrued expenses and other current liabilities   507,134       410,610  
Total current liabilities   610,106       499,675  
Convertible senior notes, net   1,650,246       891,776  
Operating lease liabilities, noncurrent   287,105       303,178  
Other liabilities   71,546       57,382  
Total liabilities   2,619,003       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, 1,229,446 shares issued and outstanding at September 30, 2020.   12       12  
Class B voting common stock, $0.00001 par value. 700,000 shares authorized, 24,522 shares issued and outstanding at December 31, 2019, and 700,000 shares authorized, 23,643 shares issued and outstanding at September 30, 2020.          
Class C voting common stock, $0.00001 par value. 260,888 shares authorized, 231,147 shares issued and outstanding at December 31, 2019, and 260,888 shares authorized, 231,627 shares issued and outstanding at September 30, 2020.   2       2  
Additional paid-in capital   9,968,707       9,205,256  
Accumulated other comprehensive income (loss)   8,499       573  
Accumulated deficit   (7,778,449 )     (6,945,930 )
Total stockholders’ equity   2,198,771       2,259,913  
Total liabilities and stockholders’ equity $ 4,817,774     $ 4,011,924  
SNAP INC.
 
  Three Months Ended   Nine Months Ended
  2020   2019   2020   2019
Free Cash Flow reconciliation:              
Net cash used in operating activities $ (54,828 )   $ (76,149 )   $ (115,099 )   $ (238,116 )
Less:              
Purchases of property and equipment   (14,727 )     (7,938 )     (41,385 )     (27,385 )
Free Cash Flow $ (69,555 )   $ (84,087 )   $ (156,484 )   $ (265,501 )
  Three Months Ended   Nine Months Ended
  2020   2019   2020   2019
Adjusted EBITDA reconciliation:              
Net loss $ (199,853 )   $ (227,375 )   $ (831,740 )   $ (792,956 )
Add (deduct):              
Interest income   (2,801 )     (10,317 )     (16,158 )     (25,579 )
Interest expense   28,212       8,654       68,052       10,219  
Other (income) expense, net   5,669       1,481       14,483       (41,477 )
Income tax (benefit) expense   909       (1,296 )     527       61  
Depreciation and amortization   21,804       20,646       63,933       66,625  
Stock-based compensation expense   192,080       161,228       550,300       519,358  
Payroll tax expense related to stock-based compensation   10,341       4,604       30,157       19,212  
Adjusted EBITDA $ 56,361     $ (42,375 )   $ (120,446 )   $ (244,537 )
Total depreciation and amortization expense by function:
 
  Three Months Ended   Nine Months Ended
  2020   2019   2020   2019
Depreciation and amortization expense:              
Cost of revenue $ 5,615   $ 4,580   $ 16,672   $ 16,368
Research and development   9,526       8,632       26,904       24,470  
Sales and marketing   3,233       3,109       9,780       10,169  
General and administrative   3,430       4,325       10,577       15,618  
Total $ 21,804     $ 20,646     $ 63,933     $ 66,625  
Total stock-based compensation expense by function:
 
  Three Months Ended   Nine Months Ended
  2020   2019   2020   2019
Stock-based compensation expense:              
Cost of revenue $ 2,623   $ 1,332   $ 6,471   $ 4,967
Research and development   132,003       108,176       377,836       353,028  
Sales and marketing   27,393       23,333       79,306       67,567  
General and administrative   30,061       28,387       86,687       93,796  
Total $ 192,080     $ 161,228     $ 550,300     $ 519,358  
SNAP INC.
 
  Three Months Ended   Nine Months Ended
  2020   2019   2020   2019
Non-GAAP net income (loss) reconciliation:              
Net loss $ (199,853 )   $ (227,375 )   $ (831,740 )   $ (792,956 )
Amortization of intangible assets   8,422       6,915       23,780       26,331  
Stock-based compensation expense   192,080       161,228       550,300       519,358  
Payroll tax expense related to stock-based compensation   10,341       4,604       30,157       19,212  
Gain on divestiture                     (39,883 )
Income tax adjustments   388       200       415       462  
Non-GAAP net loss $ 11,378     $ (54,428 )   $ (227,088 )   $ (267,476 )
               
Weighted-average common shares - Diluted   1,466,420       1,393,358       1,446,040       1,364,327  
               
Non-GAAP diluted net income (loss) per share reconciliation:              
Diluted net loss per share $ (0.14 )   $ (0.16 )   $ (0.58 )   $ (0.58 )
Non-GAAP adjustment to net loss   0.15       0.12       0.42       0.38  
Non-GAAP diluted net income (loss) per share $ 0.01     $ (0.04 )   $ (0.16 )   $ (0.20 )
SNAP INC.
 
  Q2 2019   Q3 2019   Q4 2019   Q1 2020   Q2 2020   Q3 2020
Cash Flows and Shares                      
Net cash provided by (used in) operating activities $ (95,789 )   $ (76,149 )   $ (66,842 )   $ 6,283     $ (66,554 )   $ (54,828 )
Net cash provided by (used in) operating activities - YoY (year-over-year)   52 %     43 %     (47 )%     109 %     31 %     28 %
Net cash provided by (used in) operating activities - TTM (trailing twelve months) $ (420,564 )   $ (364,170 )   $ (304,958 )   $ (232,497 )   $ (203,262 )   $ (181,941 )
Purchases of property and equipment $ (7,633 )   $ (7,938 )   $ (9,093 )   $ (10,891 )   $ (15,767 )   $ (14,727 )
Purchases of property and equipment - YoY   (78 )%     (70 )%     (60 )%     (8 )%     107 %     86 %
Purchases of property and equipment - TTM $ (68,473 )   $ (50,126 )   $ (36,478 )   $ (35,555 )   $ (43,689 )   $ (50,478 )
Free Cash Flow $ (103,422 )   $ (84,087 )   $ (75,935 )   $ (4,608 )   $ (82,321 )   $ (69,555 )
Free Cash Flow - YoY   56 %     47 %     49 %     94 %     20 %     17 %
Free Cash Flow - TTM $ (489,037 )   $ (414,296 )   $ (341,436 )   $ (268,052 )   $ (246,951 )   $ (232,419 )
Common shares outstanding   1,372,149       1,389,395       1,415,796       1,439,589       1,463,620       1,484,716  
Common shares outstanding - YoY   8 %     8 %     7 %     8 %     7 %     7 %
Shares underlying stock-based awards   180,585       175,813       160,239       149,004       152,526       138,914  
Shares underlying stock-based awards - YoY   (12 )%     (5 )%     (15 )%     (29 )%     (16 )%     (21 )%
Total common shares outstanding plus shares underlying stock-based awards   1,552,734       1,565,208       1,576,035       1,588,593       1,616,146       1,623,630  
Total common shares outstanding plus shares underlying stock-based awards - YoY   5 %     6 %     5 %     3 %     4 %     4 %
                       
Results of Operations                      
Revenue $ 388,021     $ 446,199     $ 560,889     $ 462,477     $ 454,158     $ 678,668  
Revenue - YoY   48 %     50 %     44 %     44 %     17 %     52 %
Revenue - TTM $ 1,395,964     $ 1,544,468     $ 1,715,535     $ 1,857,586     $ 1,923,723     $ 2,156,192  
Revenue by region [(1)]                      
North America $ 260,017     $ 316,028     $ 382,029     $ 315,650     $ 306,740     $ 492,928  
North America - YoY   47 %     52 %     42 %     40 %     18 %     56 %
North America - TTM $ 962,057     $ 1,070,608     $ 1,183,779     $ 1,273,724     $ 1,320,447     $ 1,497,347  
Europe $ 60,633     $ 68,553     $ 91,873     $ 76,498     $ 78,635     $ 102,480  
Europe - YoY   51 %     36 %     47 %     61 %     30 %     49 %
Europe - TTM $ 221,029     $ 239,104     $ 268,507     $ 297,557     $ 315,559     $ 349,486  
Rest of World $ 67,374     $ 61,618     $ 86,987     $ 70,329     $ 68,783     $ 83,260  
Rest of World - YoY   51 %     55 %     49 %     49 %     2 %     35 %
Rest of World - TTM $ 212,882     $ 234,760     $ 263,252     $ 286,308     $ 287,717     $ 309,359  
Operating loss $ (304,818 )   $ (228,853 )   $ (253,596 )   $ (286,364 )   $ (310,608 )   $ (167,864 )
Operating loss - YoY   (15 )%     (29 )%     30 %     (9 )%     2 %     (27 )%
Operating loss - Margin   (79 )%     (51 )%     (45 )%     (62 )%     (68 )%     (25 )%
Operating loss - TTM $ (1,138,957 )   $ (1,044,439 )   $ (1,103,328 )   $ (1,073,631 )   $ (1,079,421 )   $ (1,018,432 )
Net loss $ (255,174 )   $ (227,375 )   $ (240,704 )   $ (305,936 )   $ (325,951 )   $ (199,853 )
Net loss - YoY   (28 )%     (30 )%     26 %     (1 )%     28 %     (12 )%
Net loss - TTM $ (1,082,397 )   $ (984,624 )   $ (1,033,660 )   $ (1,029,189 )   $ (1,099,966 )   $ (1,072,444 )
Adjusted EBITDA $ (78,713 )   $ (42,375 )   $ 42,307     $ (81,237 )   $ (95,570 )   $ 56,361  
Adjusted EBITDA - YoY   53 %     69 %     184 %     34 %     (21 )%     233 %
Adjusted EBITDA - Margin [(2)]   (20 )%     (9 )%     8 %     (18 )%     (21 )%     8 %
Adjusted EBITDA - TTM $ (390,902 )   $ (294,900 )   $ (202,230 )   $ (160,018 )   $ (176,875 )   $ (78,139 )
(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.
 
  Q2 2019   Q3 2019   Q4 2019   Q1 2020   Q2 2020   Q3 2020
Other                      
DAU (in millions)   203       210       218       229       238       249  
DAU - YoY   8 %     13 %     17 %     20 %     17 %     18 %
DAU by region (in millions)                      
North America   83       84       86       88       90       90  
North America - YoY   3 %     6 %     9 %     10 %     9 %     7 %
Europe   64       65       67       70       71       72  
Europe - YoY   5 %     9 %     12 %     14 %     12 %     10 %
Rest of World   56       61       64       71       77       87  
Rest of World - YoY   21 %     28 %     36 %     45 %     37 %     43 %
ARPU $ 1.91     $ 2.12     $ 2.58     $ 2.02     $ 1.91     $ 2.73  
ARPU - YoY   37 %     33 %     23 %     20 %           28 %
ARPU by region                      
North America $ 3.14     $ 3.75     $ 4.42     $ 3.57     $ 3.40     $ 5.49  
North America - YoY   42 %     43 %     31 %     27 %     8 %     46 %
Europe $ 0.95     $ 1.05     $ 1.37     $ 1.09     $ 1.10     $ 1.43  
Europe - YoY   43 %     24 %     31 %     41 %     16 %     36 %
Rest of World $ 1.20     $ 1.01     $ 1.35     $ 1.00     $ 0.89     $ 0.95  
Rest of World - YoY   25 %     21 %     9 %     3 %     (26 )%     (6 )%
Employees (full-time; excludes part-time, contractors, and temporary personnel)   2,734       2,908       3,195       3,427       3,550       3,713  
Employees - YoY   (5 )%     0 %     11 %     22 %     30 %     28 %
                       
Depreciation and amortization expense                      
Cost of revenue $ 5,642     $ 4,580     $ 4,903     $ 5,525     $ 5,532     $ 5,615  
Research and development   7,188       8,632       8,738       8,915       8,463       9,526  
Sales and marketing   3,045       3,109       3,087       3,166       3,381       3,233  
General and administrative   6,785       4,325       3,892       3,598       3,549       3,430  
Total $ 22,660     $ 20,646     $ 20,620     $ 21,204     $ 20,925     $ 21,804  
Depreciation and amortization expense - YoY   1 %     (17 )%     (9 )%     (9 )%     (8 )%     6 %
                       
Stock-based compensation expense                      
Cost of revenue $ 1,786     $ 1,332     $ 1,398     $ 1,782     $ 2,066     $ 2,623  
Research and development   132,610       108,176       111,611       118,317       127,516       132,003  
Sales and marketing   26,474       23,333       25,788       24,806       27,107       27,393  
General and administrative   34,704       28,387       27,858       27,144       29,482       30,061  
Total $ 195,574     $ 161,228     $ 166,655     $ 172,049     $ 186,171     $ 192,080  
Stock-based compensation expense - YoY   25 %     27 %     37 %     6 %     (5 )%     19 %

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20201020006162/en/

SOURCE: Snap Inc.

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

COMTEX_373105426/2456/2020-10-20T16:10:13

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/zigman2/quotes/205087158/composite
US : U.S.: NYSE
$ 48.10
+0.15 +0.31%
Volume: 13.08M
Dec. 4, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$71.44 billion
Rev. per Employee
$409,309
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