Snap-on Incorporated · NYSE:SNA
Snap-on — Q1 2023 Earnings Presentation
20 slides from Snap-on's earnings presentation, Apr 20, 2023
Slide 1: Q1 2023 Earnings Slides
Q1 2023 Earnings Slides April 27, 2023
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 Summary
First Quarter Financial Summary • Revenue was $989 million in Q1 2023, compared to $1,063 million in Q1 2022, a decrease of 7% year-over-year. On a constant currency basis1 to account for changes in foreign exchange rates, the decrease was approximately 6% year-over-year. Revenue • Average revenue p
Slide 4: Business Highlights
Business Highlights We grew and deepened our engagement with our community: • DAUs were 383 million in Q1 2023, an increase of 51 million, or 15% year-over-year. • DAUs increased sequentially and year-over-year in each of North America, Europe, and Rest of World. • Total time spent watching Spotligh
Slide 5: Business Highlights (Continued)
Business Highlights (Continued) We are focused on expanding and diversifying our revenue growth: • We simplified Ads Manager create workflows, improved ad management experiences on mobile, redesigned the creative library and simplified our payments onboarding experiences. • We transitioned to a new
Slide 6: Business Highlights (Continued)
Business Highlights (Continued) We invested in our augmented reality platform: • Ray Tracing, which enables photorealistic quality on digital objects, is now available in Lens Studio to developers around the world. • We introduced support for Version Control for project collaboration in Lens Studio,
Slide 7: Average Daily Active Users (DAU)
Average Daily Active Users (DAU) (in millions, unaudited) GLOBAL NORTH AMERICA1 + 15% + 3% 383 97 98 99 100 100 100 363 375 332 347 319 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 EUROPE2 REST OF WORLD + 10% + 27% 92 93 183 190 86 88 175 82 84 162 150 140 Q4'21 Q1'22 Q2'2
Slide 8: Revenue by Geography
Revenue by Geography (in millions, unaudited) GLOBAL NORTH AMERICA1 - 7% - 16% $932 $1,298 $1,300 $880 $786 $812 $1,111 $1,128 $758 $1,063 $989 $640 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 EUROPE2 REST OF WORLD - 3% + 34% $209 $219 $201 $191 $162 $170 $161 $158 $157 $
Slide 9: Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) (unaudited) GLOBAL NORTH AMERICA1 - 19% - 18% $4.06 $9.58 $3.47 $8.77 $3.20 $3.20 $3.11 $7.77 $7.93 $8.13 $2.58 $6.37 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 EUROPE2 REST OF WORLD - 12% + 6% $1.12 $1.10 $2.54 $2.38 $0.96 $1.00 $0.95 $0.
Slide 10: 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 - 5 PPT + 5% $468 66% $442 $438 $446 $435 64% $413 61% 61% 61% 5
Slide 11: 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 - 1 PPT - 6% $665 $610 $599 59% $586 $199 $553 54% $530 $
Slide 12: 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 $23 $327 2% $233 (22)% (34)% (32)% (33)% (38)% 25% $(288) 18% $(329) $73 $64 $(360) $(360) 6% $7 6% 1% $1 $(422) 0.1% Q4'21 Q1'22 Q2'22 Q3'22 Q4'
Slide 13: 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 14: Operating Cash Flow and Free Cash Flow
1 Operating Cash Flow and Free Cash Flow (in millions, unaudited) OPERATING CASH FLOW FREE CASH FLOW1 $161 $186 $151 $106 $103 $127 $125 $78 $18 $56 $(147) $(124) Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Capex $(25) $(21) $(23) $(38) $(47) $(48) YoY Change 333% (16)% (
Slide 15: Financial Guidance
Financial Guidance We are not providing formal guidance for revenue or adjusted EBITDA for the second quarter of 2023. 15
Slide 16: Appendix
Appendix
Slide 17: Non-GAAP Financial Measures Reconciliation – Quarterly
Non-GAAP Financial Measures Reconciliation – Quarterly (in thousands, unaudited) Three Months Ended December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 Adjusted EBITDA Reconciliation Net income (loss) $ 22,550 $ (359,624) $ (422,067) $ (359,502) $ (288,
Slide 18: Non-GAAP Financial Measures Reconciliation – Quarterly
Non-GAAP Financial Measures Reconciliation – Quarterly (in thousands, unaudited) Three Months Ended December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 Non-GAAP net income (loss) reconciliation Net income (loss) $ 22,550 $ (359,624) $ (422,067) $ (359,5
Slide 19: 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 20: Note Regarding User Metrics and Other Data (Continued)
Note Regarding User Metrics and Other Data (Continued) We count a DAU only when a user opens the application and only once per user per day. We believe this methodology more accurately measures our user engagement. We have multiple pipelines of user data that we use to determine whether a user has o