Snap Inc. · NYSE:SNAP
Snap — Q2 2021 Earnings Presentation
20 slides from Snap's earnings presentation, Jul 22, 2021
Slide 1: Q2 2021 Earnings Slides
Q2 2021 Earnings Slides July 22, 2021
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 Financial Highlights
Second Quarter Financial Highlights • Revenue increased 116% YoY to reach $982 million in Q2 2021. Revenue • Average revenue per user increased 76% YoY to reach $3.35 in Q2 2021. • Operating margin improved to (20)% in Q2 2021, compared to (68)% in Q2 2020. • Adjusted gross margin1 improved to 55% i
Slide 4: Business Highlights
Business Highlights We have an active, engaged community: • DAUs were 293 million in Q2 2021, an increase of 55 million, or 23%, year-over-year. • DAUs increased sequentially and year-over-year in each of North America, Europe, and Rest of World. • DAUs increased sequentially and year-over-year on b
Slide 5: Business Highlights (Continued)
Business Highlights (Continued) We invested in our content offerings: • We aired eight new and renewed Snap Originals, including Swae Meets World, a documentary featuring American musician Swae Lee as he prepares to launch a solo album. • We launched a record 177 new international Discover Channels,
Slide 6: Business Highlights (Continued)
Business Highlights (Continued) We strengthened our capabilities to drive improved outcomes for advertisers: • We rolled out Public Profiles for businesses, allowing any business to create a profile on Snapchat showcasing their Lenses, Highlights, Stories, and shoppable products. • We announced an i
Slide 7: Revenue by Geography
Revenue by Geography (in millions, unaudited) GLOBAL NORTH AMERICA1 +116% +129% $982 $911 $702 $770 $659 $679 $553 $493 $462 $454 $316 $307 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 EUROPE2 REST OF WORLD +94% +86% $142 $152 $114 $128 $102 $111 $103 $76 $79 $83 $70 $69 Q
Slide 8: Average Daily Active Users (DAU)
Average Daily Active Users (DAU) (in millions, unaudited) GLOBAL NORTH AMERICA1 +23% +6% 280 293 265 249 229 238 92 93 95 88 90 90 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 EUROPE2 REST OF WORLD +10% +55% 120 77 78 111 70 71 72 74 99 87 71 77 Q1'20 Q2'20 Q3'20 Q4'20 Q1'
Slide 9: Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) (unaudited) GLOBAL NORTH AMERICA1 +76% +116% $7.19 $7.37 $3.44 $3.35 $5.94 $5.49 $2.73 $2.74 $2.02 $3.57 $3.40 $1.91 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 EUROPE2 REST OF WORLD +76% +20% $1.91 $1.95 $1.48 $1.11 $1.07 $1.43 $1.00 $0.95
Slide 10: Adjusted Cost of Revenue
Adjusted Cost of Revenue1 ADJUSTED COST OF REVENUE AS A % OF REVENUE COST OF REVENUE COMPOSITION2 (in millions, unaudited) Infrastructure Costs Content & Developer Partner Costs Advertising Partner & Other Costs +80% - 9 PPT $437 $404 $377 53% 53% 53% $182 $285 $141 $179 45% 42% 41% $246 $243 $71 $4
Slide 11: Adjusted Operating Expenses
Adjusted Operating Expenses1 ADJUSTED OPERATING EXPENSES AS A % OF REVENUE OPERATING EXPENSES COMPOSITION (in millions, unaudited) Research and Development Sales and Marketing General and Administrative +39% -24 PPT $427 68% $369 64% $367 $338 $126 $298 $307 $104 $107 50% $91 48% 44% $87 40% $102 $1
Slide 12: Net Loss & Adjusted EBITDA
Net Loss & Adjusted EBITDA1 (dollars in millions, unaudited) NET LOSS ADJUSTED EBITDA Net Loss Margin Adjusted EBITDA Margin2 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 $166 80% $170 (12)% (15)% 60% (29)% $117 $120 (37)% 40% $70 $56 (66)% $(113) 18% (72)% 12% 20% 8% $(15
Slide 13: Diluted Net Loss Per Share & Common Shares Outstanding Plus Shares Underlying Stock-Based Awards
Diluted Net Loss Per Share & Common Shares Outstanding Plus Shares Underlying Stock-Based Awards (in millions, except per share data, unaudited) DILUTED NET LOSS PER SHARE1 COMMON SHARES OUTSTANDING PLUS SHARES UNDERLYING STOCK-BASED AWARDS Common Shares Outstanding Shares Underlying Stock-Based Awa
Slide 14: Operating Cash Flow and Free Cash Flow
Operating Cash Flow and Free Cash Flow1 (in millions, unaudited) OPERATING CASH FLOW FREE CASH FLOW -52% $137 $126 $6 $(5) $(55) $(53) $(67) $(70) $(69) $(82) $(101) $(116) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Capex $(11) $(16) $(15) $(16) $(11) $(15) YoY Change 94
Slide 15: Financial Guidance
Financial Guidance The following forward-looking statements reflect our expectations for the third quarter of 2021 as of July 22, 2021, and are subject to substantial uncertainty. This guidance assumes constant foreign currency rates and, among other things, that no business acquisitions, investment
Slide 16: Appendix
Appendix
Slide 17: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation (in thousands, unaudited) Three Months Ended March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 March 31, 2021 June 30, 2021 Free Cash Flow Reconciliation Net cash used in operating activities $ 6,283 $ (66,554) $ (54,828) $ (52,545) $ 136,88
Slide 18: Non-GAAP Financial Measures Reconciliation (Continued)
Non-GAAP Financial Measures Reconciliation (Continued) (in thousands, except per share amounts, unaudited) Three Months Ended March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 March 31, 2021 June 30, 2021 Non-GAAP net income (loss) reconciliation Net loss $ (305,936) $ (325,951) $ (1
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) 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. We count a DAU only when a user opens the application and only once per