Snap Inc. · NYSE:SNAP
Snap — Q1 2024 Earnings Presentation
38 slides from Snap's earnings presentation, May 2024
Slide 1: Investor Presentation Q1 2024
Investor Presentation Q1 2024
Slide 2: Disclaimers
2 Disclaimers Note Regarding User Metrics and Other Data We define a Daily Active User, or DAU, as a registered and logged-in Snapchat user who visits Snapchat through our applications or websites at least once during a defined 24-hour period. We calculate average DAUs for a particular quarter by addi
Slide 3: Snap Inc. is a technology company
3 Snap Inc. is a technology company. We believe the camera presents the 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.
Slide 4: Snapchat
ONAPCHATS:
Slide 5: The Snapchat Experience
5 The Snapchat Experience Five Core Platforms SNAP MAP CHAT CAMERA STORIES SPOTLIGHT
Slide 6: Camera
6 Camera Highlighting AR Capabilities MACHINE-LEARNING LENSES GESTURE RECOGNITION SCENE UNDERSTANDING The Snapchat Camera drives visual communication between Snapchatters and can understand, interpret, edit, and augment a scene in real time, enabling the next generation of computing. 300M+ Snapchatt
Slide 7: Chat
7 Chat Visual Messaging With Ease CHAT FEED GROUP CHAT MY AI Visual messaging is a fast, fun way to communicate with friends and family using augmented reality, video, voice, messaging, and creative tools. THE CHAT TAB is where Snapchatters can send messages, pictures, and videos to their friends in
Slide 8: Stories
8 Stories Share and Discover Content FRIEND STORIES CREATOR STORIES PARTNERED CONTENT Stories enable our community to create and share pictures and videos from their day-to-day lives with their friends on Snapchat. They can also discover and watch entertaining content from creators and media partner
Slide 9: Spotlight
9 Spotlight New Form of Distributing Content Spotlight surfaces the most entertaining Snaps created by our community and provides a place to share user-generated content broadly on Snapchat while remaining aligned with our privacy-by-design approach. OVER 125% increase in total time spent watching S
Slide 10: Snap Map
10 Snap Map Localizing Content MAP PLACES MAP STORIES The Snap Map is a personalized map that connects our community with their friends and the world around them through Place Listings and Stories posted by our community. 350M+ Snapchatters engage with the Snap Map every month.1 1 Snap Inc. internal
Slide 11: Our Community
Our Community
Slide 12: Meet the Snapchat Community
12 Meet the Snapchat Community 800M+ More than 800 million monthly active users.1 #1 Staying connected with friends and family is the #1 global reason for using Snapchat.2 90% Snapchat reaches 90% of the 13- to 24-year-old population and 75% of the 13- to 34-year-old population in more than 25 count
Slide 13: Strong Growth in Our Community
13 Strong Growth in Our Community 422M Daily Active Users on Average Snap Inc. internal data Q1 2019–Q1 2024. See Snap Inc. public filings with the SEC. Numbers may not foot due to rounding.
Slide 14: Expanding Our Global Community
14 Relationships are what drive the depth of engagement on our platform. Our goal is to ensure RELATIONSHIPS Snapchat helps enhance relationships for our community and the people who matter most to them. CONTENT Expanding Expanding the selection of our content by DIVERSITY growing and rewarding our
Slide 15: Demonstrated Track Record of Innovation
15 Demonstrated Track Record of Innovation That Drives Growth in our Community DAU Snapchat+
Slide 16: Partner Ecosystem
Partner Ecosystem
Slide 17: Creator Ecosystem
17 Creator Ecosystem CONTENT CREATORS AR CREATORS Creator Stories Augmented Reality Stories enable our community A growing community of 350,000+ to create and share pictures and Lens Creators and developers have built videos from their day with their nearly 3.5 million AR Lenses that have friends on
Slide 18: Content Creator Opportunities
18 Content Creator Opportunities Through our content offerings and robust creative tools, creators can share content, reach millions of Snapchatters, grow their audience, and connect with fans, all in accordance with our privacy standards. Stories Revenue Spotlight Rewards Creator Marketplace Digital
Slide 19: AR Creator Opportunities
19 Lens creation starts with Lens Studio, whether you’re creating LENS STUDIO for Snapchat, Spectacles, or third-party apps through Camera Kit. Over 350K developers have built nearly 3.5M Lenses on Lens Studio.1 Enables brands and agencies to create branded AR experiences LENS WEB BUILDER through ou
Slide 20: Monetization
Monetization
Slide 21: Why Snapchat?
21 A large and engaged audience that is difficult to AUDIENCE reach elsewhere. Snapchat reaches 90% of the REACH 13- to 24-year-old population and 75% of the 13- to 34-year-old population in over 25 countries.1 We have been evolving our ad platform and ADVERTISING investing significantly into DR and br
Slide 22: Creative Ad Formats
22 Creative Ad Formats That Deliver Results AR FILTERS AR LENSES COMMERCIALS STORY ADS COLLECTION ADS SNAP AD WITH APP INSTALL
Slide 23: Advertiser Objectives
23 BUILD AWARENESS Brand Impact Website Traffic Leads Foot Traffic Advertiser Objectives Snap offers a variety of advertiser objectives to address every App Downloads In-app actions level of the sales funnel. Offline Sales Online Sales DRIVE CONVERSIONS
Slide 24: Full Stack Ads Platform Optimization
24 Full Stack Ads Platform Optimization Scaled Signals | Bigger ML Models | Higher Intent Formats | Optimized Targeting SIGNALS AND MEASUREMENT Increased adoption of Snap’s Conversions API (CAPI) as a privacy-centric solution that allows advertisers to directly pass conversion data to Snap to optimi
Slide 25: Snapchat+
25 Snapchat+ Subscription-Based Perks CUSTOM APP THEMES CHAT WALLPAPERS PIN BEST FRIENDS Snapchat+ is a collection of exclusive, experimental, and pre-release features on Snapchat for a subscription fee. Snapchat+ offers subscribers exclusive features and tools like pinning their best friend to allow
Slide 26: Future of Augmented Reality
Future of Augmented Reality
Slide 27: AR Shopping
27 AR Shopping A More Exciting Experience SIZING TRY ON AR enables brands to offer a fundamentally different and more exciting option for consumers through more advanced AR and ML technologies that power virtual storefronts, advanced try-on experiences for shoes, glasses, jackets, bags, and more. AR T
Slide 28: Camera Kit
28 Camera Kit Cross-Platform Solutions Camera Kit is a cross-platform SDK solution that expands the reach of our AR technology beyond Snapchat to partner applications or live experiences through Camera Kit Live. CUSTOMIZABLE AR EXPERIENCES Camera Kit is changing the way we shop, engage with sports,
Slide 29: Continuing to Invest in the Future of Augmented Reality
29 CREATION We provide our broader creator community with the same tools used internally at Snap to develop Continuing to Invest AR Lenses by offering free access to Lens Studio. in the Future of Augmented Reality BACKEND Lens Cloud is a collection of backend services, built on the same infrastructur
Slide 30: Long-Term Value Creation
Long-Term Value Creation
Slide 31: Long-Term Value Creation
31 Path to 1 billion MAU over the next two to three years Sustainable profitable growth with continued EBITDA profitability and positive free cash flow Executing against our plan to improve our Long-Term DR business to take market share Value Creation Innovate to drive growth in content engagement Dive
Slide 32: Opportunity to Expand Our Market Share
32 Opportunity to Expand Our Market Share Yet reaches 90% of the 13- to 24-year-old population and 75% of the 13- to 34-year-old population in the US…2 Snapchat comprises less than 2% of the US digital ad market…1 1 eMarketer and Snap Inc. internal data as of March 31, 2024. 2 Snap Inc. internal dat
Slide 33: Growing Revenue and Scaling Efficiently
33 Growing Revenue and Scaling Efficiently In millions, unaudited REVENUE AVERAGE DAILY ACTIVE USERS ~3x growth in revenue ~2x growth in DAU 2019 2020 2021 2022 2023 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 YoY YoY Change 45% 46% 64% 12% -% Change 17% 22% 20% 17% 10% ADJUSTED GROSS MARGIN1 ADJUSTED GRO
Slide 34: Balanced Approach to Investment Driving Path to Profitability
34 Balanced Approach to Investment Driving Path to Profitability In millions, unaudited NET LOSS ADJUSTED EBITDA1 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 OPERATING CASH FLOW FREE CASH FLOW2 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 1 Adjusted EBITDA is a non-GAAP measure, which we d
Slide 35: Focused Investment to Drive Long-Term Growth
35 Innovative Products COMMUNITY Localization GROWTH Application Performance Focused Investment REVENUE Ad Platform Improvements New Sources of Revenue to Drive Long-Term Growth GROWTH ● ● Spotlight Snapchat+ ● Snap Map AUGMENTED Core Technology Platform REALITY Consumer Facing Experiences
Slide 36: Capital Allocation Priorities
36 INVESTMENT Investing in our products and platforms IN BUSINESS Investing in our direct-response business TO SUPPORT GROWTH Investing in AR AND SCALE Capital Allocation M&A Accelerating our long-term product and technology vision TO ACCELERATE Investing in technology and teams Priorities PRODUCT R
Slide 37: Appendix
Snaplne. Appendix
Slide 38: Non-GAAP reconciliation footnotes
38 1 Securities class actions legal charges related to a preliminary agreement to settle the securities class actions that arose following our IPO. Charges recorded are net of amounts directly covered by insurance. These charges are non-recurring and not reflective of underlying trends in our busines