Slide 1: Q3 2024 Earnings Slides
Q3 2024 Earnings Slides October 29, 2024
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: Third Quarter 2024 Financial Summary
Third Quarter 2024 Financial Summary • Revenue was $1,373 million, compared to $1,189 million in the prior year, an increase of 15%1 year-over-year. Revenue • Average revenue per user was $3.10, compared to $2.93 in the prior year. • GAAP gross margin was 53%, compared to 53% in the prior year. • Ad
Slide 4: Business Highlights
Business Highlights We deepened engagement with our community: • DAUs were 443 million in Q3 2024, an increase of 37 million, or 9% year-over-year. • Total time spent watching content increased 25% year-over-year. • Spotlight reached more than 500 million monthly active users on average in Q3, an in
Slide 5: Business Highlights (Continued)
Business Highlights (Continued) We invested in our augmented reality platform: • We introduced the fifth generation of Spectacles, our new see-through, standalone AR glasses that enable developers to use Lenses and experience the world together with friends, powered by Snap OS. • Snap OS is our bran
Slide 6: Average Daily Active Users (DAU)
Average Daily Active Users (DAU) (in millions, unaudited) GLOBAL NORTH AMERICA1 + 9% 0% 432 443 406 414 422 101 101 100 100 100 397 100 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 EUROPE2 REST OF WORLD + 4% + 16% 96 97 99 235 244 94 95 96 218 226 202 211 Q2'23 Q3'23 Q4'23
Slide 7: Revenue by Geography
Revenue by Geography (in millions, unaudited) GLOBAL NORTH AMERICA1 + 15% + 9% $1,361 $1,373 $900 $1,237 $858 $1,189 $1,195 $786 $768 $1,068 $743 $687 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 EUROPE2 REST OF WORLD + 24% + 32% $256 $266 $238 $249 $239 $230 $223 $200 $19
Slide 8: Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) (unaudited) GLOBAL NORTH AMERICA1 + 6% + 9% $8.96 $8.54 $3.29 $7.82 $3.10 $7.44 $7.67 $2.93 $2.83 $2.86 $2.69 $6.83 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 EUROPE2 REST OF WORLD + 19% + 14% $1.13 $1.09 $2.49 $2.52 $1.03 $1.02 $2.36 $0.9
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 0 PPT + 16% $637 $615 $570 $586 $550 $162 54% 54% 55% 53% 54% $4
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 + 6 PPT + 1% 57% 56% $615 $599 $596 $604 $587 $579 52% 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 $159 $132 (11)% (18)% (20)% (26)% $(153) (31)% $55 12% $46 (35)% $40 10% $(248) $(249) 3% 4% 4% $(305) $(377) $(368) (4)% $(38) Q2'23 Q3'23 Q4'23
Slide 12: Diluted Net Income (Loss) Per Share & 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 Shares Underlyi
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 $111 $165 $72 $116 $38 $88 $13 $(61) $(21) $(73) $(119) $(82) Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Capex $(37) $(73) $(54) $(50) $(52) $(44) YoY Change 19% (435)%
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 $3,689 $3,613 $3,544 $3,192 $3,081 $2,911 $1,500 $1,150 $750 $250 $0 $36 $0 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 2024 2025 2026 20
Slide 15: Appendix
Appendix
Slide 16: Non-GAAP Financial Measures Reconciliation – Quarterly
Non-GAAP Financial Measures Reconciliation – Quarterly (in thousands, unaudited) Three Months Ended June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Adjusted Cost of Revenue reconciliation GAAP Cost of Revenue $ 496,874 $ 555,753 $ 621,504 $ 574,749
Slide 17: Non-GAAP Financial Measures Reconciliation – Quarterly
Non-GAAP Financial Measures Reconciliation – Quarterly (in thousands, unaudited) Three Months Ended June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Adjusted Research and Development Expenses reconciliation GAAP Research and Development Expenses $ 47
Slide 18: Non-GAAP Financial Measures Reconciliation – Quarterly
Non-GAAP Financial Measures Reconciliation – Quarterly (in thousands, unaudited) Three Months Ended June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Adjusted EBITDA reconciliation Net income (loss) $ (377,308) $ (368,256) $ (248,247) $ (305,090) $ (2
Slide 19: Non-GAAP Financial Measures Reconciliation – Quarterly
Non-GAAP Financial Measures Reconciliation – Quarterly (in thousands, unaudited) Three Months Ended June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Non-GAAP net income (loss) reconciliation Net income (loss) $ (377,308) $ (368,256) $ (248,247) $ (30
Slide 20: 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 21: 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 22: 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