Snap Inc
Change company Symbol lookup
Select an option...
SNAP Snap Inc
GLW Corning Inc
PAYS Paysign Inc
ALTR Altair Engineering Inc
CVX Chevron Corp
ASCB ASPAC II Acquisition Corp
STRS Stratus Properties Inc
ESMC Escalon Medical Corp
ATO Atmos Energy Corp
LVS Las Vegas Sands Corp
Go

Communication Services : Interactive Media & Services | Mid Cap Blend
Company profile

Snap Inc. is a camera company. The Company's flagship product, Snapchat, is a camera application that helps people communicate visually with friends and family through short videos and images called Snaps. Snapchat is its core mobile device application and contains five tabs. Its tabs include Camera, Communication, Snap Map, Stories and Spotlight. The Camera is the starting point for creation in Snapchat. Snapchat opens directly to the Camera, making it easy to create a Snap and send it to friends. Communication allows users to send Snaps to friends collectively or individually, through its messaging architecture. Snap Map is a live and personalized map that allows Snapchatters to connect with friends and explore what is going on in their local area. Stories feature content from a Snapchatter's friends, its community, and its content partners. Spotlight is a way to share user-generated content with the entire Snapchat community. Its advertising products include Snap Ads and AR Ads.

Closing Price
$9.82
Day's Change
-0.37 (-3.63%)
Bid
--
Ask
--
B/A Size
--
Day's High
10.33
Day's Low
9.81
Volume
(Average)
Volume:
29,121,853

10-day average volume:
28,795,962
29,121,853

Snap Inc. Announces Second Quarter 2022 Financial Results

4:10 pm ET July 21, 2022 (BusinessWire) Print

--Revenue increased 13% year-over-year to $1,111 million

--Operating cash flow was $(124) million and Free Cash Flow was $(147) million

Snap Inc. (NYSE: SNAP) today announced financial results for the quarter ended June 30, 2022.

"While the continued growth of our community increases the long-term opportunity for our business, our financial results for Q2 do not reflect our ambition," said Evan Spiegel, CEO. "We are evolving our business and strategy to reaccelerate revenue growth, including innovating on our products, investing heavily in our direct response advertising business, and cultivating new sources of revenue to help diversify our topline growth."

Snap Inc. also announced today its Board of Directors has authorized a stock repurchase program of up to $500 million of its Class A common stock. Repurchases of the Class A common stock may be made on a discretionary basis from time to time, either through open market transactions (including through Rule 10b5-1 trading plans) or through privately negotiated transactions in accordance with applicable securities laws. The timing and actual number of shares repurchased will depend on a variety of factors, including stock price, trading volume, market and economic conditions, and other general business considerations. Repurchases under the program have been authorized for the next 12 months but the program may be modified, suspended, or terminated at any time.

The goal of the program is to utilize the company's strong balance sheet to offset a portion of the dilution related to the issuance of restricted stock units to employees as part of the overall compensation program designed to foster an ownership culture.

Repurchases under this program will be funded from existing cash and cash equivalents. As of June 30, 2022, Snap had $4.9 billion in cash and cash equivalents, restricted cash, and marketable securities.

Q2 2022 Financial Summary

Revenue increased 13% to $1,111 million, compared to the prior year. Net loss was $422 million, compared to $152 million in the prior year. Adjusted EBITDA was $7 million, compared to $117 million in the prior year. Operating cash flow was $(124) million, compared to $(101) million in the prior year. Free Cash Flow was $(147) million, compared to $(116) million in the prior year.

                                                                  Three Months Ended June 30,                                    Percent                                     Six Months Ended June 30,                                             Percent                  
                                                               -----------------------------------------------------------------                                                                                                                    ------------------------------------------------------------------
                                                 2022               2021                   Change                   2022               2021                            Change                   
                                                               -------------                                            ------------                                            ------------------------                                            -------------                                            -------------                                            ----------------------------------------
(Unaudited)                                                                                                                                                              (in thousands, except per share amounts)                                                                                                                    
Revenue                                                        $    1,110,909     $     982,108         13 %                      $    2,173,636     $    1,751,692                         24 %
Operating loss                                                 $     (400,940 )                      $    (192,512 )                        (108 )%                     $     (672,467 )                      $     (496,118 )                                         (36 )%
Net loss                                                       $     (422,067 )                      $    (151,664 )                        (178 )%                     $     (781,691 )                      $     (438,546 )                                         (78 )%
Adjusted EBITDA(1)                                             $        7,190     $     117,403        (94 )%                     $       71,658     $      115,694                        (38 )%
Net cash provided by (used in) operating activities            $     (124,081 )                      $    (101,086 )                         (23 )%                     $        3,378     $       35,800                        (91 )%
Free Cash Flow(2)                                              $     (147,451 )                      $    (115,709 )                         (27 )%                     $      (41,167 )                      $       10,326                       (499 )%
Diluted net loss per share attributable to common stockholders $        (0.26 )                      $       (0.10 )                        (164 )%                     $        (0.48 )                      $        (0.29 )                                         (67 )%
Non-GAAP diluted net (loss) income per share(3)                $        (0.02 )                      $        0.10       (118 )%                     $        (0.04 )                      $         0.10                       (144 )%
(1) See page 11 for reconciliation of net loss to Adjusted EBITDA.                                 See page 11 for reconciliation of net loss to Adjusted EBITDA.
(2) See page 11 for reconciliation of net cash provided by operating activities to Free Cash Flow. See page 11 for reconciliation of net cash provided by operating activities to Free Cash Flow.

Q2 2022 Summary & Key Highlights

The Snapchat community is active, engaged, and growing:

DAUs were 347 million in Q2 2022, an increase of 54 million, or 18%, year-over-year. DAUs increased sequentially and year-over-year in each of North America, Europe, and Rest of World.

We invested in our augmented reality platform:

We released our latest version of Lens Studio, which introduces several features to improve Lens capabilities around ray tracing, lighting, shadows, reflections, and depth and expands our API library and Lens Analytics offerings. We launched Lens Cloud, a collection of backend services that expands the types of AR experiences developers can create. We introduced the Snap 3D Asset Manager, a web content management platform for businesses to manage their 3D product catalog, facilitating the AR Lens creation process. We released Dress Up, the newest AR destination on Snapchat where users can discover and browse personalized AR fashion and try-on experiences from creators, retailers, and fashion brands like Dior, Gucci, and Louis Vuitton. We added AR Shopping to our Camera Kit offering, allowing businesses like Puma to integrate try-on Lenses into their own mobile applications. We partnered with Vogue to launch a new AR Landmarker Lens and exhibition, Vogue x Snapchat: Redefining the Body - Snapchatters visiting La Malmaison in Cannes, and around the world, browsed and virtually tried on clothing from leading fashion brands like Balenciaga and Versace. We partnered with Tiffany & Co. to create AR try-on Lenses, making it possible for anyone to wear and experience some of their most iconic heritage pieces. They used Camera Kit to bring Lenses into their own mobile application, which enriched the experience of their Vision & Virtuosity exhibition at the Saatchi Gallery in London.

We grew our content offerings:

Total time spent watching Spotlight content grew 59% year-over-year. The daily average number of Snapchatters aged 25 and older engaging with shows and publisher content increased by more than 40% year-over-year. Over 10 million Snapchatters have watched "The Fight Inside," our new Snap Original featuring Ryan Garcia and his struggles with mental health and professional boxing. We renewed our partnerships with the NFL, WNBA, and NBA with content deals covering Discover Shows, Spotlight Challenges, AR experiences, and Cameos. We launched Director Mode, our latest set of camera and editing tools for content creators and users that includes exciting features like our new Dual Camera capability, Green Screen mode to manage video backgrounds, and Quick Edit to combine multiple Snaps. We announced our latest slate of Snap Originals, starring well-known personalities like gymnast Simone Biles, Indigenous creators Marika Sila and Kairyn Potts, and returning sister-duo Dixie and Charli D'Amelio.

We expanded our product and partner ecosystem:

We partnered with Live Nation to develop interactive AR Lens experiences for attendees at music festivals including EDC in Las Vegas, Governors Ball Music Festival in New York, and Wireless Festival in London, with more AR experiences to come at Rolling Loud in Miami, Lollapalooza in Chicago, and Austin City Limits Music Festival. We rolled out Snapchat+, a paid subscription service that offers exclusive, experimental, and pre-release features such as Snapchat for Web, which is currently available for subscribers in the United States, United Kingdom, and Canada. We released Pixy, our pocket-sized camera that can float, orbit, and follow your lead to capture the perfect picture or video, all without a controller or any set-up. We rolled out our newest Map Layer from restaurant review site The Infatuation, allowing Snapchatters from over 10 major cities to discover popular nearby restaurants and read reviews, right from the Snap Map. We released our new Minis Private Components System, giving developers the ability to securely add social elements like reviews and ratings to their Minis, thus leveraging their communities' friends graphs on Snapchat. We introduced our eBay integration that allows users to share eBay product listings directly with their friends via the Snapchat Camera. We introduced Shared Stories, making it even easier for groups of friends to collaborate and share Stories.

We expanded our offering for advertisers:

We rolled out our new AR Image Processing technology for businesses, which transforms existing 2D product photography into AR-ready assets for try-on Lenses, further simplifying the AR Lens workflow. We rolled out Dynamic Travel Ads, the first category expansion outside e-commerce of our current Dynamic Ads offering, specifically serving hotels, airlines, tours, and online travel agencies. We added native actions as a reporting option in Ads Manager, allowing businesses to understand how their advertising impacts their store and organic engagement on Snapchat. We expanded multi-format delivery of ad creatives by supporting Lenses as an available option, further allowing Snap to optimize delivery across multiple ad formats. Public Profiles are now enabled by default for all new advertisers, which allows users to reach businesses organically on Snapchat. We partnered with MAGNA to release their latest study, "The Augmented Reality Playbook: Understanding the Role of AR in the Purchase Journey," which highlights how AR represents a differentiated opportunity for brands to build connections with consumers and drive meaningful business results. We rolled out the Snap Ramadan Mall, our first AR-powered virtual mall in the MENA region, where Snapchatters can browse virtual stores from brands such as L'Oreal, IKEA, and Samsung right from the Snap Camera.

Financial Guidance

Given uncertainties related to the operating environment, we are not providing our expectations for revenue or adjusted EBITDA for the third quarter of 2022.

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 its websites (including snap.com and investor.snap.com) 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 other payroll related 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.

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, our stock repurchase program, future stock dividends, business strategy and plans, user growth and engagement, product initiatives, objectives of management for future operations, and advertiser and partner offerings, 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 our financial outlook, geo-political conflicts, and the 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 ability to attain and sustain profitability; 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; future acquisitions, divestitures or investments; and the potential adverse impact of climate change, natural disasters, health epidemics, macroeconomic conditions, and war or other armed conflict, as well as risks, uncertainties, and other factors described in "Risk Factors" and elsewhere in our most recent periodic report filed with the U.S. Securities and Exchange Commission, or SEC, which is available on the SEC's website at www.sec.gov. Additional information will be made available in Snap Inc.'s periodic report that will be filed with the SEC for the period covered by this press release 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 geo-political conflicts, the COVID-19 pandemic, and macroeconomic conditions, 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 other payroll related 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 income (loss), which is defined as net income (loss); excluding amortization of intangible assets; stock-based compensation expense and other payroll related 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 income (loss) and weighted average diluted shares are then used to calculate non-GAAP diluted net income (loss) per share. Similar to Adjusted EBITDA, we believe these measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses we exclude in the measure.

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

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

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

                                                                                                                                                                                                        SNAP INC.
                                                                                                                                                                                          CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                                                                                                (in thousands, unaudited)
                                                                                                                                                                                                                                                                                                     
                                                                                                                            Three Months Ended June 30,                                                                                                        Six Months Ended June 30,                                                   
                                                                                             ------------------------------------------------------------------------------------------------------------------------                                                ------------------------------------------------------------------------------------------------------------------------
                                                                                             2022                                          2021                                          2022                                          2021                    
                                                                                             ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------
Cash flows from operating activities                                                                                      
Net loss                                                                                     $                                (422,067 )                      $                                (151,664 )                      $                                (781,691 )                      $                                (438,546 )
                                                                                                                          
   Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
                                                                                                             79,291                     28,270                    117,391                     51,768  
      Depreciation and amortization
                                                                                                            318,810                    256,600                    594,254                    493,673  
      Stock-based compensation
                                                                                                              1,780                      1,148                      3,193                      2,192  
      Amortization of debt issuance costs
                                                                                                             12,210                    (79,940 )                                      91,337                   (102,451 )
      Losses (gains) on debt and equity securities, net
                                                                                                              3,079                     34,856                      4,204                     41,685  
      Other
                                                                                                                          
      Change in operating assets and liabilities, net of effect of
      acquisitions:
                                                                                                            (81,001 )                                    (174,452 )                                      45,026                    (45,136 )
         Accounts receivable, net of allowance
                                                                                                            (11,980 )                                       1,065                    (39,158 )                                     (11,371 )
         Prepaid expenses and other current assets
                                                                                                             18,299                     12,549                     35,283                     23,747  
         Operating lease right-of-use assets
                                                                                                             (7,230 )                                        (338 )                                      (7,538 )                                      (1,236 )
         Other assets
                                                                                                             (3,919 )                                     (50,159 )                                      51,061                      6,346  
         Accounts payable
                                                                                                            (14,392 )                                      27,690                    (77,220 )                                      33,039  
         Accrued expenses and other current liabilities
                                                                                                            (16,499 )                                      (8,059 )                                     (34,315 )                                     (21,354 )
         Operating lease liabilities
                                                                                                               (462 )                                       1,348                      1,551                      3,444  
         Other liabilities
                                                                                             -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------
                                                                                                           (124,081 )                                    (101,086 )                                       3,378                     35,800  
            Net cash provided by (used in) operating activities
                                                                                             -------------------- --------------------                                           -------------------- --------------------                                           -------------------- -------------------- --------------------                      -------------------- --------------------
Cash flows from investing activities                                                                                      
                                                                                                            (23,370 )                                     (14,623 )                                     (44,545 )                                     (25,474 )
      Purchases of property and equipment
                                                                                                             (6,200 )                                     (31,425 )                                      (6,350 )                                     (32,775 )
      Purchases of strategic investments
                                                                                                             63,276                     36,250                     63,276                     36,435  
      Sales of strategic investments
                                                                                                            (11,220 )                                     (30,304 )                                     (12,008 )                                    (139,216 )
      Cash paid for acquisitions, net of cash acquired
                                                                                                           (568,055 )                                    (764,371 )                                  (1,910,436 )                                  (1,287,590 )
      Purchases of marketable securities
                                                                                                              2,982                    239,500                     12,759                    347,556  
      Sales of marketable securities
                                                                                                            554,026                    696,892                    896,571                  1,513,823  
      Maturities of marketable securities
                                                                                                     --                        (50 )                                      (5,493 )                                        (335 )
      Other
                                                                                             -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------
                                                                                                             11,439                    131,869                 (1,006,226 )                                     412,424  
            Net cash provided by (used in) investing activities
                                                                                             -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------
Cash flows from financing activities                                                                                      
                                                                                                     --                  1,137,227                  1,483,500                  1,137,227  
      Proceeds from issuance of convertible notes, net of issuance costs
                                                                                                     --                    (86,825 )                                    (177,000 )                                     (86,825 )
      Purchase of capped calls
                                                                                                              1,388                      3,257                      3,654                      7,710  
      Proceeds from the exercise of stock options
                                                                                                             (3,006 )                              --                     (3,006 )                              --  
      Payments of debt issuance costs
                                                                                             -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------
                                                                                                             (1,618 )                                   1,053,659                  1,307,148                  1,058,112  
            Net cash provided by (used in) financing activities
                                                                                             -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- -------------------- --------------------
                                                                                                           (114,260 )                                   1,084,442                    304,300                  1,506,336  
            Change in cash, cash equivalents, and restricted cash
Cash, cash equivalents, and restricted cash, beginning of period                                          2,413,283                    968,437                  1,994,723                    546,543  
                                                                                             -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------
Cash, cash equivalents, and restricted cash, end of period                                   $                               2,299,023     $                               2,052,879     $                               2,299,023     $                               2,052,879  
                                                                                             ==================== ====================                                           ==================== ====================                                           ==================== ====================                                           ==================== ====================
Supplemental disclosures                                                                                                  
                                                                                             $                                   4,848     $                                   3,280     $                                   7,484     $                                  14,288  
   Cash paid for income taxes, net
                                                                                                                                                                                                    SNAP INC.
                                                                                                                                                                                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                                               (in thousands, except per share amounts, unaudited)
                                                                                                                                                                                                                                                                                              
                                                                                                                     Three Months Ended June 30,                                                                                                        Six Months Ended June 30,                                                   
                                                                                      ------------------------------------------------------------------------------------------------------------------------                                                ------------------------------------------------------------------------------------------------------------------------
                                                                                      2022                                          2021                                          2022                                          2021                    
                                                                                      ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------
Revenue                                                                               $                               1,110,909     $                                 982,108     $                               2,173,636     $                               1,751,692  
Costs and expenses:                                                                                                
                                                                                                     446,377                    445,021                    867,274                    857,622  
   Cost of revenue
                                                                                                     505,037                    370,671                    960,600                    719,251  
   Research and development
                                                                                                     311,374                    179,724                    553,260                    330,010  
   Sales and marketing
                                                                                                     249,061                    179,204                    464,969                    340,927  
   General and administrative
                                                                                      -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------
                                                                                                   1,511,849                  1,174,620                  2,846,103                  2,247,810  
      Total costs and expenses
                                                                                      -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------
Operating loss                                                                                      (400,940 )                                    (192,512 )                                    (672,467 )                                    (496,118 )
Interest income                                                                                        8,331                      1,251                     11,454                      2,388  
Interest expense                                                                                      (5,549 )                                      (4,564 )                                     (10,722 )                                      (9,595 )
Other income (expense), net                                                                          (16,910 )                                      42,282                    (94,447 )                                      64,340  
                                                                                      -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------
Loss before income taxes                                                                            (415,068 )                                    (153,543 )                                    (766,182 )                                    (438,985 )
Income tax benefit (expense)                                                                          (6,999 )                                       1,879                    (15,509 )                                         439  
                                                                                      -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------
Net loss                                                                              $                                (422,067 )                      $                                (151,664 )                      $                                (781,691 )                      $                                (438,546 )
                                                                                      ==================== ====================                                           ==================== ====================                                           ==================== ====================                                           ==================== ====================
Net loss per share attributable to Class A, Class B, and Class C common stockholders:                              
                                                                                      $                                   (0.26 )                      $                                   (0.10 )                      $                                   (0.48 )                      $                                   (0.29 )
   Basic
                                                                                      ==================== ====================                                           ==================== ====================                                           ==================== ====================                                           ==================== ====================
                                                                                      $                                   (0.26 )                      $                                   (0.10 )                      $                                   (0.48 )                      $                                   (0.29 )
   Diluted
                                                                                      ==================== ====================                                           ==================== ====================                                           ==================== ====================                                           ==================== ====================
Weighted average shares used in computation of net loss per share:                                                 
                                                                                                   1,632,140                  1,547,234                  1,625,663                  1,524,560  
   Basic
                                                                                      ==================== ====================                                           ==================== ====================                                           ==================== ====================                                           ==================== ====================
                                                                                                                                                  SNAP INC.
                                                                                                                                         CONSOLIDATED BALANCE SHEETS
                                                                                                                                      (in thousands, except par value)
                                                                                                                                                                                          
                                                                                                                                                        June 30,                                    December 31,                
                                                                                                                                                                             2022                                                                                2021
                                                                                                                                                          ----------------------------------------                                            ----------------------------------------
                                                                                                                                                       (unaudited)                        
Assets                                                                                                                                                                 
Current assets                                                                                                                                                         
                                                                                                                                                          $                               2,298,122     $                               1,993,809  
   Cash and cash equivalents
                                                                                                                                                                       2,574,354                  1,699,076  
   Marketable securities
                                                                                                                                                                       1,015,607                  1,068,873  
   Accounts receivable, net of allowance
                                                                                                                                                                         127,151                     92,244  
   Prepaid expenses and other current assets
                                                                                                                                                          -------------------- --------------------                                           -------------------- --------------------
                                                                                                                                                                       6,015,234                  4,854,002  
      Total current assets
Property and equipment, net                                                                                                                                              232,476                    202,644  
Operating lease right-of-use assets                                                                                                                                      416,169                    322,252  
Intangible assets, net                                                                                                                                                   234,261                    277,654  
Goodwill                                                                                                                                                               1,634,085                  1,588,452  
Other assets                                                                                                                                                             258,566                    291,302  
                                                                                                                                                          -------------------- --------------------                                           -------------------- --------------------
                                                                                                                                                          $                               8,790,791     $                               7,536,306  
      Total assets
                                                                                                                                                          ==================== ====================                                           ==================== ====================
Liabilities and Stockholders' Equity                                                                                                        
Current liabilities                                                                                                                                                    
                                                                                                                                                          $                                 184,146     $                                 125,282  
   Accounts payable
                                                                                                                                                                          48,978                     52,396  
   Operating lease liabilities
                                                                                                                                                                         830,843                    674,108  
   Accrued expenses and other current liabilities
                                                                                                                                                          -------------------- --------------------                                           -------------------- --------------------
                                                                                                                                                                       1,063,967                    851,786  
      Total current liabilities
Convertible senior notes, net                                                                                                                                          3,739,092                  2,253,087  
Operating lease liabilities, noncurrent                                                                                                                                  416,501                    325,509  
Other liabilities                                                                                                                                                        127,472                    315,756  
                                                                                                                                                          -------------------- --------------------                                           -------------------- --------------------
                                                                                                                                                                       5,347,032                  3,746,138  
      Total liabilities
                                                                                                                                                          -------------------- --------------------                                           -------------------- --------------------
Commitments and contingencies                                                                                                                                          
Stockholders' equity                                                                                                                        
                                                                                                                                                                              14                         14  
   Class A non-voting common stock, $0.00001 par value. 3,000,000 shares authorized, 1,390,709 shares issued and outstanding at June 30, 2022, and
   3,000,000 shares authorized, 1,364,887 shares issued and outstanding at December 31, 2021.
                                                                                                                                                                  --             --  
   Class B voting common stock, $0.00001 par value. 700,000 shares authorized, 22,638 shares issued and outstanding at June 30, 2022, and 700,000 shares
   authorized, 22,769 shares issued and outstanding at December 31, 2021.
                                                                                                                                                                               2                          2  
   Class C voting common stock, $0.00001 par value. 260,888 shares authorized, 231,627 shares issued and outstanding at June 30, 2022, and 260,888 shares
   authorized, 231,627 shares issued and outstanding at December 31, 2021.
                                                                                                                                                                      12,529,743                 12,069,097  
   Additional paid-in capital
                                                                                                                                                                         (19,843 )                                       5,521  
   Accumulated other comprehensive income (loss)
                                                                                                                                                                      (9,066,157 )                                  (8,284,466 )
   Accumulated deficit
                                                                                                                                                          -------------------- --------------------                                           -------------------- --------------------
                                                                                                                                                                       3,443,759                  3,790,168  
      Total stockholders' equity
                                                                                                                                                          -------------------- --------------------                                           -------------------- --------------------
                                                                                                                                                                              SNAP INC.
                                                                                                                                                        RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
                                                                                                                                                                      (in thousands, unaudited)
                                                                                                                                                                                                                                                  
                                                                         Three Months Ended June 30,                                                                                                        Six Months Ended June 30,                                                   
                                          ------------------------------------------------------------------------------------------------------------------------                                                ------------------------------------------------------------------------------------------------------------------------
                                          2022                                          2021                                          2022                                          2021                    
                                          ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------
Free Cash Flow reconciliation:                                         
Net cash provided by operating activities $                                (124,081 )                      $                                (101,086 )                      $                                   3,378     $                                  35,800  
Less:                                                                  
                                                         (23,370 )                                     (14,623 )                                     (44,545 )                                     (25,474 )
   Purchases of property and equipment
                                          -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------
                                                                                                    Three Months Ended June 30,                                                                                                        Six Months Ended June 30,                                                   
                                                                     ------------------------------------------------------------------------------------------------------------------------                                                ------------------------------------------------------------------------------------------------------------------------
                                                                     2022                                          2021                                          2022                                          2021                    
                                                                     ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------
Adjusted EBITDA reconciliation:                                                                   
Net loss                                                             $                                (422,067 )                      $                                (151,664 )                      $                                (781,691 )                      $                                (438,546 )
Add (deduct):                                                                                     
                                                                                     (8,331 )                                      (1,251 )                                     (11,454 )                                      (2,388 )
   Interest income
                                                                                      5,549                      4,564                     10,722                      9,595  
   Interest expense
                                                                                     16,910                    (42,282 )                                      94,447                    (64,340 )
   Other (income) expense, net
                                                                                      6,999                     (1,879 )                                      15,509                       (439 )
   Income tax (benefit) expense
                                                                                     79,291                     28,270                    117,391                     51,768  
   Depreciation and amortization
                                                                                    318,810                    256,600                    594,254                    493,673  
   Stock-based compensation expense
                                                                                     10,029                     25,045                     32,480                     66,371  
   Payroll and other tax expense related to stock-based compensation
                                                                     -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------

Total depreciation and amortization expense by function:

                                                                      Three Months Ended June 30,                                                                                                        Six Months Ended June 30,                                                   
                                       ------------------------------------------------------------------------------------------------------------------------                                                ------------------------------------------------------------------------------------------------------------------------
                                       2022                                          2021                                          2022                                          2021                    
                                       ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------
Depreciation and amortization expense:                              
                                       $                                   5,061     $                                   4,727     $                                  10,573     $                                  10,003  
   Cost of revenue
                                                       22,362                     14,358                     44,485                     25,394  
   Research and development
                                                       49,061                      5,162                     56,453                      8,348  
   Sales and marketing
                                                        2,807                      4,023                      5,880                      8,023  
   General and administrative
                                       -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------
                                                                                                                                                                          SNAP INC.
                                                                                                                                              RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
                                                                                                                                                     (in thousands, except per share amounts, unaudited)
Total stock-based compensation expense by function:
                                                                                                                                                                                                                                          
                                                                 Three Months Ended June 30,                                                                                                        Six Months Ended June 30,                                                   
                                  ------------------------------------------------------------------------------------------------------------------------                                                ------------------------------------------------------------------------------------------------------------------------
                                  2022                                          2021                                          2022                                          2021                    
                                  ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------
Stock-based compensation expense:                              
                                  $                                   2,849     $                                   2,847     $                                   5,295     $                                   5,503  
   Cost of revenue
                                                 221,650                    174,491                    404,516                    338,284  
   Research and development
                                                  48,577                     37,491                     90,648                     66,575  
   Sales and marketing
                                                  45,734                     41,771                     93,795                     83,311  
   General and administrative
                                  -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------
                                                                                                    Three Months Ended June 30,                                                                                                        Six Months Ended June 30,                                                   
                                                                     ------------------------------------------------------------------------------------------------------------------------                                                ------------------------------------------------------------------------------------------------------------------------
                                                                     2022                                          2021                                          2022                                          2021                    
                                                                     ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------
Non-GAAP net (loss) income reconciliation:                                                        
Net loss                                                             $                                (422,067 )                      $                                (151,664 )                      $                                (781,691 )                      $                                (438,546 )
                                                                                     64,134                     14,363                     86,639                     24,808  
   Amortization of intangible assets
                                                                                    318,810                    256,600                    594,254                    493,673  
   Stock-based compensation expense
                                                                                     10,029                     25,045                     32,480                     66,371  
   Payroll and other tax expense related to stock-based compensation
                                                                                       (504 )                                        (199 )                                        (565 )                                         390  
   Income tax adjustments
                                                                     -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------
                                                                     $                                 (29,598 )                      $                                 144,145     $                                 (68,883 )                      $                                 146,696  
   Non-GAAP net (loss) income
                                                                     ==================== ====================                                           ==================== ====================                                           ==================== ====================                                           ==================== ====================
                                                                               
Weighted-average common shares - Diluted                                          1,632,140                  1,547,234                  1,625,663                  1,524,560  
                                                                               
Non-GAAP diluted net (loss) income per share reconciliation:                                      
                                                                     $                                   (0.26 )                      $                                   (0.10 )                      $                                   (0.48 )                      $                                   (0.29 )
   Diluted net loss per share
                                                                                       0.24                       0.20                       0.44                       0.39  
   Non-GAAP adjustment to net loss
                                                                     -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------
                                                                                                                                                                                                                                     SNAP INC.
                                                                                                                                                                                                                                     SUPPLEMENTAL FINANCIAL INFORMATION AND BUSINESS METRICS
                                                                                                                                                                                                                                     (dollars and shares in thousands, except per user amounts, unaudited)
                                                                                                                                                                                                                               
                                                                                  Q1 2021                                       Q2 2021                                       Q3 2021                                       Q4 2021                                       Q1 2022                                       Q2 2022                  
                                                                                   ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------
Cash Flows and Shares                                                                                                           
Net cash provided by (used in) operating activities                                $                                 136,886     $                                (101,086 )                      $                                  71,552     $                                 185,528     $                                 127,459     $                                (124,081 )
Net cash provided by (used in) operating activities - YoY (year-over-year)                          (2079 )%                                        (52 )%                                        231 %                                         453 %                                          (7 )%                                         23 %
Net cash provided by (used in) operating activities - TTM (trailing twelve months) $                                 (37,041 )                      $                                 (71,573 )                      $                                  54,807     $                                 292,880     $                                 283,453     $                                 260,458  
Purchases of property and equipment                                                $                                 (10,851 )                      $                                 (14,623 )                      $                                 (19,836 )                      $                                 (24,565 )                      $                                 (21,175 )                      $                                 (23,370 )
Purchases of property and equipment - YoY                                                  --                         (7 )%                                         35 %                                          49 %                                          95 %                                          60 %
Purchases of property and equipment - TTM                                          $                                 (57,792 )                      $                                 (56,648 )                      $                                 (61,757 )                      $                                 (69,875 )                      $                                 (80,199 )                      $                                 (88,946 )
Free Cash Flow                                                                     $                                 126,035     $                                (115,709 )                      $                                  51,716     $                                 160,963     $                                 106,284     $                                (147,451 )
Free Cash Flow - YoY                                                                                 2835 %                                         (41 )%                                        174 %                                         333 %                                         (16 )%                                         27 %
Free Cash Flow - TTM                                                               $                                 (94,833 )                      $                                (128,221 )                      $                                  (6,950 )                      $                                 223,005     $                                 203,254     $                                 171,512  
Common shares outstanding                                                                       1,519,001                  1,576,744                  1,605,153                  1,619,283                  1,632,563                  1,644,974  
Common shares outstanding - YoY                                                                         6 %                                           8 %                                           8 %                                           8 %                                           7 %                                           4 %
Shares underlying stock-based awards                                                              110,190                    104,516                     92,726                     82,814                     75,066                     92,105  
Shares underlying stock-based awards - YoY                                                            (26 )%                                        (31 )%                                        (33 )%                                        (34 )%                                        (32 )%                                        (12 )%
Total common shares outstanding plus shares underlying stock-based awards                       1,629,191                  1,681,260                  1,697,879                  1,702,097                  1,707,629                  1,737,079  
Total common shares outstanding plus shares underlying stock-based awards - YoY                         3 %                                           4 %                                           5 %                                           4 %                                           5 %                                           3 %
                                                                                                             
Results of Operations                                                                                                           
Revenue                                                                            $                                 769,584     $                                 982,108     $                               1,067,471     $                               1,297,885     $                               1,062,727     $                               1,110,909  
Revenue - YoY                                                                                          66 %                                         116 %                                          57 %                                          42 %                                          38 %                                          13 %
Revenue - TTM                                                                      $                               2,813,732     $                               3,341,682     $                               3,730,485     $                               4,117,048     $                               4,410,191     $                               4,538,992  
Revenue by region(1)                                                                                                            
North America                                                                      $                                 552,972     $                                 701,735     $                                 786,917     $                                 932,077     $                                 758,261     $                                 785,681  
North America - YoY                                                                                    75 %                                         129 %                                          60 %                                          41 %                                          37 %                                          12 %
North America - TTM                                                                $                               2,011,803     $                               2,406,798     $                               2,700,787     $                               2,973,701     $                               3,178,990     $                               3,262,936  
Europe                                                                             $                                 113,619     $                                 152,268     $                                 153,121     $                                 208,912     $                                 162,132     $                                 170,097  
Europe - YoY                                                                                           49 %                                          94 %                                          49 %                                          48 %                                          43 %                                          12 %
Europe - TTM                                                                       $                                 436,342     $                                 509,975     $                                 560,616     $                                 627,920     $                                 676,433     $                                 694,262  
Rest of World                                                                      $                                 102,993     $                                 128,105     $                                 127,433     $                                 156,896     $                                 142,334     $                                 155,131  
Rest of World - YoY                                                                                    46 %                                          86 %                                          53 %                                          42 %                                          38 %                                          21 %
Rest of World - TTM                                                                $                                 365,587     $                                 424,909     $                                 469,082     $                                 515,427     $                                 554,768     $                                 581,794  
Operating loss                                                                     $                                (303,606 )                      $                                (192,512 )                      $                                (180,824 )                      $                                 (25,127 )                      $                                (271,527 )                      $                                (400,940 )
Operating loss - YoY                                                                                   (6 )%                                         38 %                                          (8 )%                                         74 %                                          11 %                                        (108 )%
Operating loss - Margin                                                                               (39 )%                                        (20 )%                                        (17 )%                                         (2 )%                                        (26 )%                                        (36 )%
Operating loss - TTM                                                               $                                (879,314 )                      $                                (761,218 )                      $                                (774,178 )                      $                                (702,069 )                      $                                (669,990 )                      $                                (878,418 )
Net (loss) income                                                                  $                                (286,882 )                      $                                (151,664 )                      $                                 (71,959 )                      $                                  22,550     $                                (359,624 )                      $                                (422,067 )
Net (loss) income - YoY                                                                                 6 %                                          53 %                                          64 %                                         120 %                                         (25 )%                                       (178 )%
Net (loss) income - TTM                                                            $                                (925,785 )                      $                                (751,498 )                      $                                (623,604 )                      $                                (487,955 )                      $                                (560,697 )                      $                                (831,100 )
Adjusted EBITDA                                                                    $                                  (1,709 )                      $                                 117,403     $                                 174,199     $                                 326,793     $                                  64,468     $                                   7,190  
Adjusted EBITDA - YoY                                                                                  98 %                                         223 %                                         209 %                                          97 %                                        3872 %                                         (94 )%
Adjusted EBITDA - Margin(2)                                                                --                         12 %                                          16 %                                          25 %                                           6 %                                           1 %
(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. Total revenue for geographic reporting is apportioned to each region based on our determination of the geographic location in which advertising impressions are delivered, as this approximates revenue based on user activity. This allocation is consistent with how we determine ARPU.
                                                                                                                                                                                                                                     SNAP INC.
                                                                                                                                                                                                                                     SUPPLEMENTAL FINANCIAL INFORMATION AND BUSINESS METRICS (continued)
                                                                                                                                                                                                                                     (dollars and shares in thousands, except per user amounts, unaudited)
                                                                                                                                                                                                                            
                                                                               Q1 2021                                       Q2 2021                                       Q3 2021                                       Q4 2021                                       Q1 2022                                       Q2 2022                  
                                                                                ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------                                            ----------------------------------------
Other                                                                                                                        
DAU (in millions)                                                                                  280                        293                        306                        319                        332                        347  
DAU - YoY                                                                                           22 %                                          23 %                                          23 %                                          20 %                                          18 %                                          18 %
DAU by region (in millions)                                                                                                  
North America                                                                                       93                         95                         96                         97                         98                         99  
North America - YoY                                                                                  5 %                                           6 %                                           7 %                                           6 %                                           5 %                                           4 %
Europe                                                                                              77                         78                         80                         82                         84                         86  
Europe - YoY                                                                                         9 %                                          10 %                                          11 %                                          11 %                                          10 %                                          10 %
Rest of World                                                                                      111                        120                        130                        140                        150                        162  
Rest of World - YoY                                                                                 57 %                                          55 %                                          49 %                                          41 %                                          36 %                                          35 %
ARPU                                                                            $                                    2.74     $                                    3.35     $                                    3.49     $                                    4.06     $                                    3.20     $                                    3.20  
ARPU - YoY                                                                                          36 %                                          76 %                                          28 %                                          18 %                                          17 %                                          (4 )%
ARPU by region                                                                                                               
North America                                                                   $                                    5.94     $                                    7.37     $                                    8.20     $                                    9.58     $                                    7.77     $                                    7.93  
North America - YoY                                                                                 66 %                                         116 %                                          49 %                                          33 %                                          31 %                                           8 %
Europe                                                                          $                                    1.48     $                                    1.95     $                                    1.92     $                                    2.54     $                                    1.93     $                                    1.98  
Europe - YoY                                                                                        36 %                                          76 %                                          34 %                                          33 %                                          30 %                                           2 %
Rest of World                                                                   $                                    0.93     $                                    1.07     $                                    0.98     $                                    1.12     $                                    0.95     $                                    0.96  
Rest of World - YoY                                                                                 (7 )%                                         20 %                                           3 %                                           1 %                                           2 %                                         (11 )%
Employees (full-time; excludes part-time, contractors, and temporary personnel)                  4,043                      4,667                      5,190                      5,661                      6,131                      6,446  
Employees - YoY                                                                                     18 %                                          31 %                                          40 %                                          47 %                                          52 %                                          38 %
                                                                                                          
Depreciation and amortization expense                                                                                        
Cost of revenue                                                                 $                                   5,276     $                                   4,727     $                                   4,876     $                                   4,832     $                                   5,512     $                                   5,061  
Research and development                                                                        11,036                     14,358                     17,321                     19,444                     22,123                     22,362  
Sales and marketing                                                                              3,186                      5,162                      6,306                      7,118                      7,392                     49,061  
General and administrative                                                                       4,000                      4,023                      4,007                      3,469                      3,073                      2,807  
                                                                                -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------
Total                                                                           $                                  23,498     $                                  28,270     $                                  32,510     $                                  34,863     $                                  38,100     $                                  79,291  
                                                                                -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------
Depreciation and amortization expense - YoY                                                         11 %                                          35 %                                          49 %                                          53 %                                          62 %                                         180 %
                                                                                                          
Stock-based compensation expense                                                                                             
Cost of revenue                                                                 $                                   2,656     $                                   2,847     $                                   9,132     $                                   2,586     $                                   2,446     $                                   2,849  
Research and development                                                                       163,793                    174,491                    198,893                    202,953                    182,866                    221,650  
Sales and marketing                                                                             29,084                     37,491                     51,675                     45,991                     42,071                     48,577  
General and administrative                                                                      41,450                     41,771                     41,198                     46,034                     48,061                     45,734  
                                                                                -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------
Total                                                                           $                                 237,073     $                                 256,600     $                                 300,898     $                                 297,564     $                                 275,444     $                                 318,810  
                                                                                -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------                                           -------------------- --------------------

View source version on businesswire.com: https://www.businesswire.com/news/home/20220721005903/en/

SOURCE: Snap Inc.

Investors and Analysts:
ir@snap.com

Press:
press@snap.com
comtex tracking

COMTEX_410697330/1006/2022-07-21T16:10:00

Earnings Calendar and Events Data provided by |Terms of Use| © 2022 Wall Street Horizon, Inc.

Market data accompanied by is delayed by at least 15 minutes for NASDAQ, NYSE MKT, NYSE, and options. Duration of the delay for other exchanges varies.
Market data and information provided by Morningstar.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses.
Please read Characteristics and Risks of Standard Options before investing in options.

Information and news provided by ,, , Computrade Systems, Inc., ,, and

Copyright © 2022. All rights reserved.