Snap Inc. · NYSE:SNAP
Snap — Q1 2017 Earnings Presentation
13 slides from Snap's earnings presentation, May 10, 2017
Slide 1: Q1 2017 Earnings Report
Q1 2017 Earnings Report May 10, 2017
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: Quarterly Average Daily Active Users
Quarterly Average Daily Active Users (in millions, unaudited) Global North America1 166 153 158 71 143 65 68 122 61 54 2.5Bn+ 3Bn+ Daily Daily Snaps Snaps Created Created Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Europe2 Rest of World 55 39 39 40 52 49 36 46 39 29 Q1'16 Q2'16 Q3'16
Slide 4: Quarterly Revenue by Geography
Quarterly Revenue by Geography (in millions, unaudited) North America1 Europe2 Rest of World $166 $150 $128 $72 $39 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 North America $36 $65 $115 $145 $129 Europe $3 $6 $12 $15 $13 Rest of World $0 $0 $2 $6 $8 Numbers may not foot due to rounding. Total revenue for geograp
Slide 5: Quarterly Average Revenue Per User (ARPU)
Quarterly Average Revenue Per User (ARPU) (unaudited) Global North America1 $1.05 $0.90 $2.15 $0.84 $1.76 $1.81 $0.50 $1.06 $0.32 $0.67 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Europe2 Rest of World $0.28 $0.19 $0.24 $0.24 $0.15 $0.14 $0.07 $0.04 $0.01 $0.01 Q1'16 Q2'16 Q3'16 Q4'1
Slide 6: Cost of Revenue
Cost of Revenue1 (unaudited) Cost of Revenue Composition (in millions) Hosting Cost per DAU Hosting Cost Revenue Share Cost Other $152 $142 $17 $127 $20 $22 $0.72 $11 $0.64 $19 $23 $0.60 $95 $0.55 $6 $0.52 $76 $10 $6 $7 $113 $97 $99 $79 $63 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Slide 7: Capital Expenditures
Capital Expenditures (in millions, unaudited) $25.50 $20 $18 $20.50 $17 $16 $15.50 $12 $10.50 $5.50 $0.50 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Limited investment in infrastructure resulting in modest CapEx 7
Slide 8: Operating Expense
Operating Expense1 (in millions, unaudited) Research and Development Sales and Marketing General and Administrative $196 $166 $62 $64 $110 $56 $82 $39 $47 $56 $29 $33 $21 $24 $78 $13 $55 $29 $38 $22 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 SBC–Related Expense $5 $5 $15 $7 $1,993 D&A Expense $5 $6 $7 $9 $11 Tot
Slide 9: Adjusted EBITDA and Free Cash Flow
Adjusted EBITDA and Free Cash Flow1 (in millions, unaudited) Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 $0 ($20) ($40) ($60) ($80) $(93) ($100) ($120) $(105) $(109) ($140) $(152) ($160) ($180) ($200) $(188) Free Cash $(105) $(151) $(234) $(188) $(173) Flow Reduced capital expenditures should better align Adjuste
Slide 10: Appendix
Appendix
Slide 11: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation (in thousands, unaudited) 1We define Adjusted EBITDA as net income (loss), excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation and amortization; and stock-based compensation expense and relate
Slide 12: 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 measure average Daily Active Users for a particular quarter by calculating the average Daily Active Use
Slide 13: 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. For example, before June 2015, we used a third party that counted a Dail