Snap Inc. · NYSE:SNAP
Snap — Investor Presentation (2021)
27 slides from Snap's investor presentation, Nov 20, 2021
Slide 1: Derek Andersen, Chief Financial Officer
Derek Andersen Chief Financial Officer
Slide 2: Disclaimers
Disclaimers Note Rogarding Forward Locking Statements and uso of Non-GAAP financials This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1984, as amended, or the Exchange Act, about us and our
Slide 3: Focus on Growth and Profitability
Focus on Growth and Profitability Full year revenue ($M) I +14% CAGR i +46% CAGR 1 2018 2019 2020 2018 2019 2020 Full year adjusted EBITDA ($M)? Full year net loss ($M) | $(576) $(202) $45 $(1,256) $(1,034) $945) 2018 2019 2020 2018 2019 2020 1. Snap Ine. internal data 20 2. We define Adjusted EBITD
Slide 4: Global Penetration
Global Penetration 23% Penetration? 13% Penetration? 4% Penetration? 92M DAU! 74M DAU! 99M DAU' a gf ~400M Smartphones? ~560M Smartphones2 ~2.4B Smartphones2
Slide 5: Rest of World Opportunity
Rest of World Opportunity © Current RoW DAUs' 13-24 year olds with smartphones? 13-34 year olds with smartphones? O Total smartphones (all ages)? 1. Snap ine. internal data Q4 2020, See Snep Inc. public filings with the SEC. 2. United Nations population estimates. Smartphone penetzation by age cohor
Slide 6: International Growth Playbook
International Growth Playbook LOCAL LANGUAGE LOCAL LENSES 35 1.5M+ Lenses launched2 Languages currently supported! 150K+ Active lens creators globally? 1. Snap inc. internal dat 2. Snap Inc. internal dat 3. Snap Ine. intern: 4. Snap Inc. interna ata January 22, 2015 - January 29, 2021 LOCAL CONTENT
Slide 7: International Growth Case Study: India
International Growth Case Study: India WHY INDIA IS AN ATTRACTIVE MARKET Over 8% annual growth in 4G and 5G mobile subscribers through 2023! Over 11% annual growth in nominal GDP per capita through 20232 INITIATIVES 9 Local languages supported? 85 Local Discover channels 5SK+ Local lens creators ion
Slide 8: Australia
Australia Above 90% 13-24 penetration Above 15% 13-34 penetration 1. Snap inc. internal data @4 2020. Penetration calculated as MAU divided by 2020 copulation estimates, per United Nations World Population Prospects, 2019. Representative Established Markets France BOL Netherlands Representative Grow
Slide 9: Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) Global North America +27% CAGR 1 -———-_ +88% cack. ————_ $19.66 $14.12 $10.31 2018 2019 2020 2018 2019 2020 i +34% CAGR 1 ARPU an output metric amid rapid community growth $5.53 $4.53 $3.61 $3.96 $4.15 ‘ $3.08 2018 2019 2020 2018 2019 2020 We define ARPU as quarterly
Slide 10: Significant DAU and ARPU Opportunity
Significant DAU and ARPU Opportunity America’ Lai (+) NA REVENUE* 16 Years Old DAU? gi Q aS on & 9 Years Old 36M vy 14 Years Old $17 $58 $196 AVERAGE REVENUE PER USER? Comparison is illustrative as each Company calculates daily active users different 1. Snap inc. includes the US., Canada, Mexico, th
Slide 11: Snapchat reaches 70%+ of 13-34 year olds
Snapchat reaches 70%+ of 13-34 year olds in countries comprising over half the world’s digital ad spend EEGMHOS = >> wy Australia Canada France Netherlands CFOS Up UD wy Sweden Norway Saudi Arabia Ireland Denmark — Luxembourg
Slide 12: Stories/Discover
Stories/Discover Double down on brand safe content investments Opportunity Current Momentum Growing engagement is expanding the ARPU opportunity Large CPM opportunity from increasing advertiser density Investing in brand safe premium content to capitalize on shift to mobile Ongoing adoption of Comme
Slide 13: Camera/AR
Camera/AR Invest in new capabilities and find product market fit for AR advertising Opportunity Virtually unlimited ad inventory from core user behaviors Finding new use cases to create utility and ROI for advertisers Adoption of self serve and goal based bidding ad units growing rapidly Early produ
Slide 14: Spotlight
Spotlight Untapped ad supply from user generated content Opportunity Engagement ramping rapidly as we focus on utility for Snapchatters Excited about the opportunity for Spotlight to contribute to our ARPU opportunity over time Will expand inventory of high demand and high CPM ad products Current Ov
Slide 15: Map
Map Create the world’s most personalized map Opportunity Onboard local brick and mortar businesses as our communities re-open Build utility on the Map for local businesses in 2021 to lay the groundwork for future monetization Current Over 250 million Monthly Active Users! Momentum Over 35 million bu
Slide 16: Communications Platform
Communications Platform Visual communication and shared experiences create monetizable engagement Opportunity CURRENT MOMENTUM Sharing of sponsored lenses and filters underpin monetization today Games and Minis present opportunity to scale monetization Commercials and Tokens (beta stage) available i
Slide 17: Building Blocks for Sustained Growth
Building Blocks for Sustained Growth Full year revenue ($M) I +46% CAGR 1 + We see a path to sustained revenue growth of ~50% for several years assuming favorable economic conditions + Ongoing investments in Discover and premium content to drive engagement and inventory growth + Spotlight to expand
Slide 18: Scaling Efficiently to Drive Gross Margin Leverage
Scaling Efficiently to Drive Gross Margin Leverage Infra per DAU has remained relatively flat over time... ..allowing us to make targeted investments in content... 2 Be 12.2% £ é 8 g 8.8% g Bs 2018 2019 2020 2018 2019 2020 hile still delivering substantial improvements in gross margins ge 54% 25 49%
Slide 19: Balanced Approach to Investment Driving Path to Profitability
Balanced Approach to Investment Driving Path to Profitability ..Significant adjusted EBITDA leverage’... Adjusted operating expense discipline driving... Adjusted EBITDA Leverage revenue Adjusted operating expenses as a % of 2018 2019 2020 Total Adjusted $988 $1,050 $1,311 Operating Expenses Total N
Slide 20: Careful Management of SBC to Build Shareholder Value
Careful Management of SBC to Build Shareholder Value Stock-based compensation expense as a % of revenue 1,507 Fully diluted shares outstan: 1,576 1,630 2018 2019 2020 Net Loss as a percentage of Revenue Net loss as a % of revenue 106% 38% 2018 2019 2020 Disciplined management of SBC + Stock-based co
Slide 21: $2.5 billion in cash and marketable securities
$2.5 billion in cash and marketable securities Conservative financial leverage at ~2% of market capitalization’ No debt maturing before 2025 Capital Allocation Focus investments in our talent base to drive innovation Investments in Product and Content to expand the ARPU opportunity over time Investm
Slide 22: Strategic M&A
L@@KSERY ( Bitstrips y PLAYCANVAS @zenly Ariel Al q StreetCred IVI voca.ai April 2015 March 2016 March 2017 May 2017 September 2020 September 2020 December 2020 Camera Communication Games Map Camera Map Camera Strategic M&A Description Application allows users to communicate through augmented realit
Slide 23: Executing our international growth playbook
Executing our international growth playbook to grow our community for the long term Investing in innovation to deepen engagement and expand the ARPU opportunity Long Sophisticated ad platform, and innovative ad Te rm Va | ue =r units, deliver return on ad spend for partners Creation ) © © Scale oper
Slide 24: Thank You
Thank You
Slide 25: Appendix
Appendix
Slide 26: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation (in thousands, unaudited) 2018 2019 2020 Free Cash Flow Reconciliation Net cash used in operating activities $ (689,924) $ (304,958) $ (167,644) Less: Purchases of property and equipment (120,242) (36,478) (57,832) Free Cash Flow’ $ (810,166) $ (341,436) $
Slide 27: Non-GAAP Financial Measures Reconciliation (Continued)
Non-GAAP Financial Measures Reconciliation (Continued) (in thousands, unaudited) Cost of Revenue Breakdown Total Adjusted Cost of Revenue 2018 2019 Total Non-GAAP $31 $28 $33 Exclusions" Total GAAP Cost of $799 $896 $1,183 Revenue “Excludes wock-baved compensation expense and related payrolltax expe