Snap-on Incorporated · NYSE:SNA
Snap-on — Q1 2024 Earnings Presentation
21 slides from Snap-on's earnings presentation, Apr 18, 2024
Slide 1: Q1 2024 Earnings Slides
Q1 2024 Earnings Slides April 25, 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: First Quarter Financial Summary
First Quarter Financial Summary • Revenue was $1,195 million in Q1 2024, compared to $989 million in Q1 2023, an increase of 21%1 year-over-year. Revenue • Average revenue per user was $2.83 in Q1 2024, compared to $2.58 in Q1 2023. • Operating margin was (28)% in Q1 2024, compared to (37)% in Q1 20
Slide 4: Business Highlights
Business Highlights We grew and deepened our engagement with our community: • DAUs were 422 million in Q1 2024, an increase of 39 million, or 10%, year-over-year. • Total time spent watching Spotlight content increased more than 125% year-over-year. • The growth in the Snap Star program has been an
Slide 5: Business Highlights (Continued)
Business Highlights (Continued) We are focused on accelerating and diversifying our revenue growth: • Snapchat+ subscribers more than tripled year-over-year, surpassing 9 million subscribers in Q1. • The number of small and medium sized advertisers on Snapchat increased 85% year-over-year. • Ongoing
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, which contributed to the number of ML and AI Lenses viewed by Snapchatters increasing by more than 50% year-over-year. •
Slide 7: Average Daily Active Users (DAU)
Average Daily Active Users (DAU) (in millions, unaudited) GLOBAL NORTH AMERICA1 + 10% - 1% 406 414 422 100 100 101 101 100 383 397 100 375 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 EUROPE2 REST OF WORLD + 4% + 19% 218 226 202 211 92 93 94 95 96 96 183 190 Q4'22 Q1'23 Q2
Slide 8: Revenue by Geography
Revenue by Geography (in millions, unaudited) GLOBAL NORTH AMERICA1 + 21% + 16% $1,300 $1,361 $880 $900 $1,189 $1,195 $786 $1,068 $743 $989 $687 $640 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 EUROPE2 REST OF WORLD + 24% + 34% $256 $238 $219 $223 $200 $196 $201 $191 $199
Slide 9: Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) (unaudited) GLOBAL NORTH AMERICA1 + 10% + 17% $3.47 $8.77 $8.96 $3.29 $7.82 $2.93 $2.83 $7.44 $2.58 $2.69 $6.83 $6.37 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 EUROPE2 REST OF WORLD + 20% + 13% $1.10 $1.13 $2.38 $2.49 $1.00 $0.98 $1.03 $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 - 4 PPT + 31% $615 $570 64% $550 $491 $182 56% 54% 55% $468 $148
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 + 7 PPT + 5% 57% $599 $615 54% $599 $587 $579 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 $233 $159 (18)% (22)% 18% (26)% (31)% 12% (33)% (35)% $(248) $46 $40 $(288) $1 $(305) $(329) 0.1% 4% 3% $(377) $(368) (4)% $(38) Q4'22 Q1'23 Q2'2
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 $78 $125 $38 $88 $13 $(61) $(119) $(82) Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Capex $(47) $(48) $(37) $(73) $(54) $(50) YoY Change (51)% (3)% 19
Slide 15: Capital Resources and Liquidity
Capital Resources and Liquidity (in millions, unaudited) CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES1 OUTSTANDING CONVERTIBLE NOTES2 $4,103 Outstanding Principal $3,939 $3,689 $3,613 $3,544 $2,911 $1,500 $1,150 $487 $184 $0 $0 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 2024 2025 2026 2027 2028 2029+
Slide 16: Q2 2024 Outlook
Q2 2024 Outlook As we enter Q2, we anticipate continued growth of our global community, and as a result, our Q2 guidance is built on the assumption that DAU will be approximately 431 million in Q2. We are focused on executing against our roadmap to deliver improvements to our DR advertising platform
Slide 17: Appendix
Appendix
Slide 18: Non-GAAP Financial Measures Reconciliation – Quarterly
Non-GAAP Financial Measures Reconciliation – Quarterly (in thousands, unaudited) Three Months Ended December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 Adjusted EBITDA Reconciliation Net income (loss) $ (288,460) $ (328,674) $ (377,308) $ (368,256) $ (2
Slide 19: Non-GAAP Financial Measures Reconciliation – Quarterly
Non-GAAP Financial Measures Reconciliation – Quarterly (in thousands, unaudited) Three Months Ended December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 Non-GAAP net income (loss) reconciliation Net income (loss) $ (288,460) $ (328,674) $ (377,308) $ (36
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) We count a DAU only when a user visits Snapchat through our applications or websites 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