Slide 1: Q2 2024 Earnings Slides
Q2 2024 Earnings Slides August 1, 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: Second Quarter 2024 Financial Summary
Second Quarter 2024 Financial Summary • Revenue was $1,237 million, compared to $1,068 million in the prior year, an increase of 16%1 year-over-year. Revenue • Average revenue per user was $2.86, compared to $2.69 in the prior year. • Operating margin was (21)%, compared to (38)% in the prior year.
Slide 4: Business Highlights
Business Highlights We grew and deepened our engagement with our community: • DAUs were 432 million in Q2 2024, an increase of 36 million, or 9% year-over-year. • Q2 marked an important milestone for Snap, as we reached more than 850 million monthly active users (MAU). • We recently announced new co
Slide 5: Business Highlights (Continued)
Business Highlights (Continued) We are focused on accelerating and diversifying our revenue growth: • Ongoing momentum with our direct response products and growth in small- and medium-size businesses (SMB) contributed to total active advertisers more than doubling year-over-year in Q2. • Our improv
Slide 6: Business Highlights (Continued)
Business Highlights (Continued) We invested in our augmented reality platform: • We continue to invest in Generative AI models and automation for the creation of ML and AI Lenses, such as our Gen AI lens Scribble World which was viewed over 1 billion times and our 90’s AI lens, which was viewed by m
Slide 7: Average Daily Active Users (DAU)
Average Daily Active Users (DAU) (in millions, unaudited) GLOBAL NORTH AMERICA1 + 9% 0% 414 422 432 397 406 100 101 101 100 100 100 383 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 EUROPE2 REST OF WORLD + 3% + 16% 226 235 211 218 96 96 97 202 93 94 95 190 Q1'23 Q2'23 Q3'23
Slide 8: Revenue by Geography
Revenue by Geography (in millions, unaudited) GLOBAL NORTH AMERICA1 + 16% + 12% $1,361 $900 $1,189 $1,195 $1,237 $786 $743 $768 $1,068 $687 $989 $640 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 EUROPE2 REST OF WORLD + 26% + 20% $256 $238 $230 $239 $223 $200 $196 $191 $199
Slide 9: Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) (unaudited) GLOBAL NORTH AMERICA1 + 6% + 12% $8.96 $3.29 $7.82 $2.93 $7.44 $7.67 $2.83 $2.86 $6.83 $2.58 $2.69 $6.37 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 EUROPE2 REST OF WORLD + 22% + 4% $1.13 $2.49 $1.00 $0.98 $1.03 $1.02 $2.36 $0.9
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 - 1 PPT + 19% $615 $570 $586 $550 $491 $182 $146 56% 54% 55% $14
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 + 9 PPT - 3% 57% $615 $599 $596 $587 $579 52% 52% $553 50
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 $159 (18)% (20)% (26)% (31)% $55 (33)% 12% $46 (35)% $40 $(248) $(249) 3% 4% 4% $1 $(305) $(329) 0.1% $(377) $(368) (4)% $(38) Q1'23 Q2'23 Q3'23
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 Shares Underlyi
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 $111 $103 $165 $151 $38 $88 $13 $(61) $(21) $(73) $(119) $(82) Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Capex $(48) $(37) $(73) $(54) $(50) $(52) YoY Change (3)% 19% (
Slide 15: Capital Resources and Liquidity
Capital Resources and Liquidity (in millions, unaudited) CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES OUTSTANDING CONVERTIBLE NOTES $4,103 Outstanding Principal $3,689 $3,613 $3,544 $3,081 $2,911 $1,500 $1,150 $750 $250 $0 $36 $0 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 2024 2025 2026 2027 2028 2029
Slide 16: Q3 2024 Outlook
Q3 2024 Outlook As we enter Q3, we anticipate continued growth of our global community, and as a result, our Q3 guidance is built on the assumption that DAU will be approximately 441 million in Q3. We are focused on executing against our roadmap to deliver improvements to our advertising platform to
Slide 17: Appendix
Appendix
Slide 18: Non-GAAP Financial Measures Reconciliation – Quarterly
Non-GAAP Financial Measures Reconciliation – Quarterly (in thousands, unaudited) Three Months Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 Adjusted EBITDA Reconciliation Net income (loss) $ (328,674) $ (377,308) $ (368,256) $ (248,247) $ (305,0
Slide 19: Non-GAAP Financial Measures Reconciliation – Quarterly
Non-GAAP Financial Measures Reconciliation – Quarterly (in thousands, unaudited) Three Months Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 Non-GAAP net income (loss) reconciliation Net income (loss) $ (328,674) $ (377,308) $ (368,256) $ (248,24
Slide 20: 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 21: 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