Slide 1: Q4 2024 Earnings Slides
Q4 2024 Earnings Slides February 4, 2025
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: Fourth Quarter 2024 Financial Summary
Fourth Quarter 2024 Financial Summary • Revenue was $1,557 million, compared to $1,361 million in the prior year, an increase of 14%1 year-over-year. Revenue • Average revenue per user was $3.44, compared to $3.29 in the prior year. • GAAP gross margin was 57%, compared to 54% in the prior year. • A
Slide 4: Business Highlights
Business Highlights We deepened engagement with our community: • DAUs were 453 million in Q4 2024, an increase of 39 million, or 9% year-over-year. • More than one billion Snaps were shared publicly on Snapchat every month in Q4 from our community, creators, and media partners. • We continue to supp
Slide 5: Business Highlights (Continued)
Business Highlights (Continued) We invested in our augmented reality platform: • Over 200 million Spotlight videos have been created this year featuring Lenses made by our talented community of Lens Creators. • More than 400 million Snapchatters engaged with new Gen AI Lenses more than 4 billion tim
Slide 6: Average Daily Active Users (DAU)
Average Daily Active Users (DAU) (in millions, unaudited) GLOBAL NORTH AMERICA1 + 9% - 1% 443 453 414 422 432 406 101 100 100 100 100 100 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 EUROPE2 REST OF WORLD + 4% + 17% 244 254 95 96 96 97 99 99 226 235 211 218 Q3'23 Q4'23 Q1'
Slide 7: Revenue by Geography
Revenue by Geography (in millions, unaudited) GLOBAL NORTH AMERICA1 + 14% + 8% $1,557 $969 $1,361 $1,373 $900 $858 $1,189 $1,195 $1,237 $786 $743 $768 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 EUROPE2 REST OF WORLD + 20% + 35% $287 $301 $238 $249 $230 $256 $266 $200 $19
Slide 8: Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) (unaudited) GLOBAL NORTH AMERICA1 + 5% + 9% $3.29 $3.44 $3.10 $9.73 $2.93 $2.83 $2.86 $8.96 $8.54 $7.82 $7.44 $7.67 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 EUROPE2 REST OF WORLD + 16% + 16% $1.19 $1.13 $1.09 $2.89 $1.03 $1.02 $0.96 $2.4
Slide 9: Adjusted Gross Margin and Adjusted Cost of Revenue
1 Adjusted Gross Margin and Adjusted Cost of Revenue (dollars in millions, unaudited) ADJUSTED GROSS MARGIN1 ADJUSTED COST OF REVENUE1 COMPOSITION Infrastructure Costs Advertising Partner & Other Costs Content & Developer Partner Costs + 2 PPT + 9% $669 $637 $615 $570 $586 57% $550 $180 54% 55% $162
Slide 10: Adjusted Operating Expense Margin and Adjusted Operating Expenses
1 Adjusted Operating Expense Margin and Adjusted Operating Expenses (dollars in millions, unaudited) ADJUSTED OPERATING EXPENSE MARGIN1 ADJUSTED OPERATING EXPENSES1 COMPOSITION Research & Development Sales & Marketing General & Administrative + 4 PPT + 4% 61% 57% 56% $599 $604 $612 $587 $579 $596 52
Slide 11: Net Income (Loss) & Adjusted EBITDA
1 Net Income (Loss) & Adjusted EBITDA (dollars in millions, unaudited) NET INCOME (LOSS) ADJUSTED EBITDA1 Net Income (Loss) Margin Adjusted EBITDA Margin2 $9 1% $276 (11)% (18)% (20)% (26)% $(153) (31)% $159 $(248) $(249) $132 18% $(305) 12% 10% $(368) $55 $40 $46 3% 4% 4% Q3'23 Q4'23 Q1'24 Q2'24 Q3
Slide 12: Diluted Net Income (Loss) Per Share & Common Shares Outstanding
Diluted Net Income (Loss) Per Share & Common Shares Outstanding Plus Shares Underlying Stock-Based Awards (in millions, except per share data, unaudited) DILUTED NET INCOME (LOSS) PER SHARE1 COMMON SHARES OUTSTANDING PLUS SHARES UNDERLYING STOCK-BASED AWARDS Common Shares Outstanding $0.01 Shares Un
Slide 13: Operating Cash Flow and Free Cash Flow
1 Operating Cash Flow and Free Cash Flow (in millions, unaudited) OPERATING CASH FLOW FREE CASH FLOW1 $231 $182 $165 $111 $116 $72 $88 $38 $13 $(61) $(21) $(73) Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Capex $(73) $(54) $(50) $(52) $(44) $(48) YoY Change (435)% 41% (63
Slide 14: Capital Resources and Liquidity
Capital Resources and Liquidity (in millions, unaudited) CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES OUTSTANDING CONVERTIBLE NOTES Maturity of Outstanding Principal $3,613 $3,544 $3,376 $3,192 $3,081 $2,911 $1,500 $1,150 $750 $250 $36 $0 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 2025 2026 2027 2028
Slide 15: Full Year Summary
Full Year Summary
Slide 16: Full Year Financial Summary
Full Year Financial Summary • Revenue was $5,361 million1 in 2024, compared to $4,606 million in the prior year. Revenue • Average revenue per user2 was $12.23 in 2024, compared to $11.49 in the prior year. • GAAP gross margin was 54% in 2024, compared to 54% in the prior year. • Adjusted Gross Marg
Slide 17: Revenue and Average Daily Active Users (DAU)
1 Revenue and Average Daily Active Users (DAU) (in millions, unaudited) REVENUE AVERAGE DAILY ACTIVE USERS1 $5,361 453 414 $4,602 $4,606 375 $4,117 319 265 $2,507 2020 2021 2022 2023 2024 Q4'20 Q4'21 Q4'22 Q4'23 Q4'24 YoY Change 46% 64% 12% —% 16% YoY Change 22% 20% 17% 10% 9% 1 We define a Daily Ac
Slide 18: Adjusted Gross Margin and Adjusted Gross Profit
1 Adjusted Gross Margin and Adjusted Gross Profit (dollars in millions, unaudited) ADJUSTED GROSS MARGIN1 ADJUSTED GROSS PROFIT1 $2,837 $2,900 $2,515 $2,405 62% 58% 54% 55% 54% $1,357 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 GAAP Gross GAAP Gross 53% 57% 61% 54% 54% $1,324 $2,367 $2,787 $2,
Slide 19: Net Loss & Adjusted EBITDA
1 Net Loss & Adjusted EBITDA (in millions, unaudited) NET LOSS ADJUSTED EBITDA1 $617 $509 $(488) $378 $(698) $(945) $162 $(1,322) $45 $(1,430) 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 1 Adjusted EBITDA is a non-GAAP measure, which we define as net income (loss), excluding interest income; i
Slide 20: Operating Cash Flow and Free Cash Flow
1 Operating Cash Flow and Free Cash Flow (in millions, unaudited) OPERATING CASH FLOW FREE CASH FLOW1 $223 $219 $413 $293 $247 $55 $185 $35 $(168) $(225) 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Capex $(58) $(70) $(129) $(212) $(195) 1 Free Cash Flow is a non-GAAP measure, which we define a
Slide 21: Appendix
Appendix
Slide 22: Non-GAAP Financial Measures Reconciliation – Quarterly
Non-GAAP Financial Measures Reconciliation – Quarterly (in thousands, unaudited) Three Months Ended September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Adjusted Cost of Revenue reconciliation GAAP Cost of Revenue $ 555,753 $ 621,504 $ 574,749 $ 588,
Slide 23: Non-GAAP Financial Measures Reconciliation – Quarterly
Non-GAAP Financial Measures Reconciliation – Quarterly (in thousands, unaudited) Three Months Ended September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Adjusted Research and Development Expenses reconciliation GAAP Research and Development Expenses
Slide 24: Non-GAAP Financial Measures Reconciliation – Quarterly
Non-GAAP Financial Measures Reconciliation – Quarterly (in thousands, unaudited) Three Months Ended September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Adjusted EBITDA reconciliation Net income (loss) $ (368,256) $ (248,247) $ (305,090) $ (248,620)
Slide 25: Non-GAAP Financial Measures Reconciliation – Quarterly
Non-GAAP Financial Measures Reconciliation – Quarterly (in thousands, unaudited) Three Months Ended September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Non-GAAP net income (loss) reconciliation Net income (loss) $ (368,256) $ (248,247) $ (305,090) $
Slide 26: Non-GAAP Financial Measures Reconciliation – Annual
Non-GAAP Financial Measures Reconciliation – Annual (in thousands, unaudited) Year Ended 2020 2021 2022 2023 2024 Adjusted EBITDA Reconciliation Net income (loss) $ (944,839) $ (487,955) $ (1,429,653) $ (1,322,485) $ (697,856) Add (deduct): Interest income (18,127) (5,199) (58,597) (168,394) (153,46
Slide 27: Non-GAAP Financial Measures Reconciliation – Annual
Non-GAAP Financial Measures Reconciliation – Annual (in thousands, unaudited) Year Ended 2020 2021 2022 2023 2024 Revenue $ 2,506,626 $ 4,117,048 $ 4,601,847 $ 4,606,115 $ 5,361,398 Adjusted Cost of Revenue reconciliation GAAP Cost of Revenue $ 1,182,505 $ 1,750,246 $ 1,815,342 $ 2,114,117 $ 2,474,2
Slide 28: Non-GAAP Measures
Non-GAAP 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
Slide 29: 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 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 adding the numbe
Slide 30: Note Regarding User Metrics and Other Data (Continued)
Note Regarding User Metrics and Other Data (Continued) Some of our demographic data may be incomplete or inaccurate. For example, because users self-report their dates of birth, our age-demographic data may differ from our users’ actual ages. And because users who signed up for Snapchat before June