Snap Inc. · NYSE:SNAP
Snap — Q1 2021 Earnings Presentation
19 slides from Snap's earnings presentation, Apr 22, 2021
Slide 1: Q1 2021 Earnings Slides
Q1 2021 Earnings Slides April 22, 2021
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
Forward-Looking Statements & Non-GAAP Financial Measures This presentation contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this presentation, including statements reg
Slide 3: First Quarter Financial Highlights
First Quarter Financial Highlights • Revenue increased 66% YoY to $770 million. Revenue • Average revenue per user increased 36% YoY to $2.74. • Adjusted gross margin1 remained flat at 47% compared to Q1 2020. • Operating margin improved to (39)%, compared to (62)% in Q1 2020. Operating • Net loss w
Slide 4: Business Highlights
Business Highlights We have an active, engaged community: • DAUs were 280 million in Q1 2021, an increase of 51 million, or 22%, year-over-year. • DAUs increased sequentially and year-over-year in each of North America, Europe, and Rest of World. • DAUs increased sequentially and year-over-year on b
Slide 5: Business Highlights (Continued)
Business Highlights (Continued) We strengthened our capabilities to drive improved outcomes for advertisers: • We partnered with the fitness company Sweat to launch a full body Lens to track body movement while exercising in order to recommend optimal form to Snapchatters. • We partnered with Gucci
Slide 6: Revenue by Geography
Revenue by Geography (in millions, unaudited) GLOBAL NORTH AMERICA1 +66% +75% $911 $770 $659 $679 $553 $561 $493 $462 $454 $382 $316 $307 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 EUROPE2 REST OF WORLD +49% +46% $142 $102 $114 $111 $92 $103 $76 $79 $87 $83 $70 $69 Q4'19
Slide 7: Average Daily Active Users (DAU)
Average Daily Active Users (DAU) (in millions, unaudited) GLOBAL NORTH AMERICA1 +22% +5% 280 265 238 249 218 229 88 90 90 92 93 86 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 EUROPE2 REST OF WORLD +9% +57% 77 111 70 71 72 74 99 67 87 71 77 64 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20
Slide 8: Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) (unaudited) GLOBAL NORTH AMERICA1 +36% +66% $7.19 $3.44 $5.94 $5.49 $2.58 $2.73 $2.74 $4.42 $2.02 $3.57 $3.40 $1.91 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 EUROPE2 REST OF WORLD +36% -7% $1.91 $1.35 $1.48 $1.11 $1.37 $1.43 $1.00 $0.95 $
Slide 9: Adjusted Cost of Revenue
Adjusted Cost of Revenue1 ADJUSTED COST OF REVENUE AS A % OF REVENUE COST OF REVENUE COMPOSITION2 (in millions, unaudited) Infrastructure Costs Content & Developer Partner Costs Advertising Partner & Other Costs +64% - 1 PPT $404 $377 53% 53% 53% $179 $141 $285 44% 42% 41% $247 $246 $243 $71 $50 $47
Slide 10: Adjusted Operating Expenses
Adjusted Operating Expenses1 ADJUSTED OPERATING EXPENSES AS A % OF REVENUE OPERATING EXPENSES COMPOSITION (in millions, unaudited) Research and Development Sales and Marketing General and Administrative +23% -17 PPT $369 $367 $338 68% 64% $307 $298 $104 $107 $271 $91 50% $87 48% 48% $102 $81 40% $12
Slide 11: Net Loss & Adjusted EBITDA
Net Loss & Adjusted EBITDA1 (dollars in millions, unaudited) NET LOSS ADJUSTED EBITDA Net Loss Margin Adjusted EBITDA Margin2 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 $166 80% $170 (12)% 60% $120 (29)% (43)% (37)% 40% $70 $56 $42 18% 20% (66)% (72)% $(113) 8% $20 0% 8%
Slide 12: Diluted Net Loss Per Share & Common Shares Outstanding Plus Shares Underlying Stock-Based Awards
Diluted Net Loss Per Share & Common Shares Outstanding Plus Shares Underlying Stock-Based Awards (in millions, except per share data, unaudited) DILUTED NET LOSS PER SHARE1 COMMON SHARES OUTSTANDING PLUS SHARES UNDERLYING STOCK-BASED AWARDS Common Shares Outstanding Shares Underlying Stock-Based Awa
Slide 13: Operating Cash Flow and Free Cash Flow
Operating Cash Flow and Free Cash Flow1 (in millions, unaudited) Cash Provided by (Used in) Operating Activities Capital Expenditures Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 $137 $6 $(11) $(11) $(5) $(53) $126 $(55) $(67) $(67) $(15) $(16) $(9) $(16) $(70) $(69) $(76) $(82) FCF YoY Change 49% 94% 20% 17
Slide 14: Financial Guidance
Financial Guidance The following forward-looking statements reflect our expectations for the second quarter of 2021 as of April 22, 2021, and are subject to substantial uncertainty. This guidance assumes constant foreign currency rates and, among other things, that no business acquisitions, investme
Slide 15: Appendix
Appendix
Slide 16: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation (in thousands, unaudited) Three Months Ended December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 March 31, 2021 Free Cash Flow Reconciliation Net cash provided by (used in) operating activities $ (66,842) $ 6,283 $ (66,554) $
Slide 17: Non-GAAP Financial Measures Reconciliation (Continued)
Non-GAAP Financial Measures Reconciliation (Continued) (in thousands, except per share amounts, unaudited) Three Months Ended December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 March 31, 2021 Non-GAAP net income (loss) reconciliation Net loss $ (240,704) $ (305,936)
Slide 18: Note Regarding User Metrics and Other Data
Note Regarding User Metrics and Other Data We define a Daily Active User, or DAU, 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 quarte
Slide 19: Note Regarding User Metrics and Other Data (Continued)
Note Regarding User Metrics and Other Data (Continued) In the past we have relied on third-party analytics providers to calculate our metrics, but today we rely primarily on our analytics platform that we developed and operate. We count a DAU only when a user opens the application and only once per