Daily Active Users increased 18% year-over-year
to 347 million
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
)%
Common shares outstanding plus shares
underlying stock-based awards
1,737,079
1,681,260
3
%
1,737,079
1,681,260
3
%
(1)
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.
(3)
See page 12 for reconciliation of diluted
net (loss) income per share to non-GAAP diluted net (loss) income
per share.
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:
Depreciation and amortization
79,291
28,270
117,391
51,768
Stock-based compensation
318,810
256,600
594,254
493,673
Amortization of debt issuance costs
1,780
1,148
3,193
2,192
Losses (gains) on debt and equity
securities, net
12,210
(79,940
)
91,337
(102,451
)
Other
3,079
34,856
4,204
41,685
Change in operating assets and
liabilities, net of effect of
acquisitions:
Accounts receivable, net of allowance
(81,001
)
(174,452
)
45,026
(45,136
)
Prepaid expenses and other current
assets
(11,980
)
1,065
(39,158
)
(11,371
)
Operating lease right-of-use assets
18,299
12,549
35,283
23,747
Other assets
(7,230
)
(338
)
(7,538
)
(1,236
)
Accounts payable
(3,919
)
(50,159
)
51,061
6,346
Accrued expenses and other current
liabilities
(14,392
)
27,690
(77,220
)
33,039
Operating lease liabilities
(16,499
)
(8,059
)
(34,315
)
(21,354
)
Other liabilities
(462
)
1,348
1,551
3,444
Net cash provided by (used in) operating
activities
(124,081
)
(101,086
)
3,378
35,800
Cash flows from investing
activities
Purchases of property and equipment
(23,370
)
(14,623
)
(44,545
)
(25,474
)
Purchases of strategic investments
(6,200
)
(31,425
)
(6,350
)
(32,775
)
Sales of strategic investments
63,276
36,250
63,276
36,435
Cash paid for acquisitions, net of cash
acquired
(11,220
)
(30,304
)
(12,008
)
(139,216
)
Purchases of marketable securities
(568,055
)
(764,371
)
(1,910,436
)
(1,287,590
)
Sales of marketable securities
2,982
239,500
12,759
347,556
Maturities of marketable securities
554,026
696,892
896,571
1,513,823
Other
—
(50
)
(5,493
)
(335
)
Net cash provided by (used in) investing
activities
11,439
131,869
(1,006,226
)
412,424
Cash flows from financing
activities
Proceeds from issuance of convertible
notes, net of issuance costs
—
1,137,227
1,483,500
1,137,227
Purchase of capped calls
—
(86,825
)
(177,000
)
(86,825
)
Proceeds from the exercise of stock
options
1,388
3,257
3,654
7,710
Payments of debt issuance costs
(3,006
)
—
(3,006
)
—
Net cash provided by (used in) financing
activities
(1,618
)
1,053,659
1,307,148
1,058,112
Change in cash, cash equivalents, and
restricted cash
(114,260
)
1,084,442
304,300
1,506,336
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
Cash paid for income taxes, net
$
4,848
$
3,280
$
7,484
$
14,288
Cash paid for interest
$
551
$
1,614
$
4,005
$
6,741
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:
Cost of revenue
446,377
445,021
867,274
857,622
Research and development
505,037
370,671
960,600
719,251
Sales and marketing
311,374
179,724
553,260
330,010
General and administrative
249,061
179,204
464,969
340,927
Total costs and expenses
1,511,849
1,174,620
2,846,103
2,247,810
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:
Basic
$
(0.26
)
$
(0.10
)
$
(0.48
)
$
(0.29
)
Diluted
$
(0.26
)
$
(0.10
)
$
(0.48
)
$
(0.29
)
Weighted average shares used in
computation of net loss per share:
Basic
1,632,140
1,547,234
1,625,663
1,524,560
Diluted
1,632,140
1,547,234
1,625,663
1,524,560
SNAP INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except par
value)
June 30, 2022
December 31,
2021
(unaudited)
Assets
Current assets
Cash and cash equivalents
$
2,298,122
$
1,993,809
Marketable securities
2,574,354
1,699,076
Accounts receivable, net of allowance
1,015,607
1,068,873
Prepaid expenses and other current
assets
127,151
92,244
Total current assets
6,015,234
4,854,002
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
Total assets
$
8,790,791
$
7,536,306
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
184,146
$
125,282
Operating lease liabilities
48,978
52,396
Accrued expenses and other current
liabilities
830,843
674,108
Total current liabilities
1,063,967
851,786
Convertible senior notes, net
3,739,092
2,253,087
Operating lease liabilities,
noncurrent
416,501
325,509
Other liabilities
127,472
315,756
Total liabilities
5,347,032
3,746,138
Commitments and contingencies
Stockholders’ equity
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.
14
14
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.
—
—
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.
2
2
Additional paid-in capital
12,529,743
12,069,097
Accumulated other comprehensive income
(loss)
(19,843
)
5,521
Accumulated deficit
(9,066,157
)
(8,284,466
)
Total stockholders’ equity
3,443,759
3,790,168
Total liabilities and stockholders’
equity
$
8,790,791
$
7,536,306
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:
Purchases of property and equipment
(23,370
)
(14,623
)
(44,545
)
(25,474
)
Free Cash Flow
$
(147,451
)
$
(115,709
)
$
(41,167
)
$
10,326
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):
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
)
Income tax (benefit) expense
6,999
(1,879
)
15,509
(439
)
Depreciation and amortization
79,291
28,270
117,391
51,768
Stock-based compensation expense
318,810
256,600
594,254
493,673
Payroll and other tax expense related to
stock-based compensation
10,029
25,045
32,480
66,371
Adjusted EBITDA
$
7,190
$
117,403
$
71,658
$
115,694
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:
Cost of revenue
$
5,061
$
4,727
$
10,573
$
10,003
Research and development
22,362
14,358
44,485
25,394
Sales and marketing
49,061
5,162
56,453
8,348
General and administrative
2,807
4,023
5,880
8,023
Total
$
79,291
$
28,270
$
117,391
$
51,768
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:
Cost of revenue
$
2,849
$
2,847
$
5,295
$
5,503
Research and development
221,650
174,491
404,516
338,284
Sales and marketing
48,577
37,491
90,648
66,575
General and administrative
45,734
41,771
93,795
83,311
Total
$
318,810
$
256,600
$
594,254
$
493,673
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
)
Amortization of intangible assets
64,134
14,363
86,639
24,808
Stock-based compensation expense
318,810
256,600
594,254
493,673
Payroll and other tax expense related to
stock-based compensation
10,029
25,045
32,480
66,371
Income tax adjustments
(504
)
(199
)
(565
)
390
Non-GAAP net (loss) income
$
(29,598
)
$
144,145
$
(68,883
)
$
146,696
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:
Diluted net loss per share
$
(0.26
)
$
(0.10
)
$
(0.48
)
$
(0.29
)
Non-GAAP adjustment to net loss
0.24
0.20
0.44
0.39
Non-GAAP diluted net (loss) income per
share
$
(0.02
)
$
0.10
$
(0.04
)
$
0.10
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
%
Adjusted EBITDA - TTM
$
124,691
$
337,664
$
455,502
$
616,686
$
682,863
$
572,650
(1)
Total revenue for geographic reporting is apportioned to each
region based on our determination of the geographic location in
which advertising impressions are delivered, as this approximates
revenue based on user activity. This allocation is consistent with
how we determine ARPU.
(2)
We define Adjusted EBITDA margin as Adjusted EBITDA divided by
GAAP revenue.
SNAP INC.
SUPPLEMENTAL FINANCIAL
INFORMATION AND BUSINESS METRICS (continued)
(dollars and shares in thousands,
except 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
Stock-based compensation expense - YoY
38
%
38
%
57
%
35
%
16
%
24
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220721005903/en/
Investors and Analysts: ir@snap.com
Press: press@snap.com
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