Snap Inc. · NYSE:SNAP
Snap — Q1 2022 Earnings Presentation
48 slides from Snap's earnings presentation, April 2022
Slide 1: Investor Presentation
Investor Presentation April 2022
Slide 2: Disclaimers
2 Disclaimers 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
Slide 3: Snap Inc. Is a Camera Company
Snap Inc. Is a Camera Company We believe that reinventing the camera represents our greatest opportunity to improve the way people live and communicate. We contribute to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together.
Slide 4: Our Community
Our Community
Slide 5: Strong Growth in Our Community
5 Strong Growth in Our Community 332M Daily Active Users on average Snap Inc. internal data Q1 2019–Q1 2022. See Snap Inc. public filings with the SEC.
Slide 6: High Penetration in Most Established Markets
6 High Penetration in Most Established Markets US UK Australia France Netherlands 90% 75% of the 13 to 24-year-old population. of the 13 to 34-year-old population. Snap Inc. internal data Q4 2021. Penetration calculated as monthly active users (MAUs) divided by 2020 population estimates per the 2019
Slide 7: Significant Opportunity to Globally Expand Our Community
7 Significant Opportunity to Globally Expand Our Community North America Europe Rest of World 24% penetration 3 15% penetration3 6% penetration3 98M DAUs1 84M DAUs1 150M DAUs1 ~400M smartphones2 ~560M smartphones2 ~2.5B smartphones2 1 Snap Inc. internal data Q1 2022. See Snap Inc. public filings with
Slide 8: International Growth Playbook
8 International Growth Playbook LOCAL LANGUAGE LOCAL LENSES LOCAL CONTENT LOCAL MARKETING LOCAL PARTNERSHIPS Preloaded partnerships with major handset 2.5M+ 500+ OEMs provide placement and promotion. international content Generate 40+ Lenses launched.2 partners in awareness languages through local c
Slide 9: Snapchat
Snapchat
Slide 10: A Decade of Innovation
10 Daily Active Users A Decade of Innovation 332M Food Scan Quick Tap to Snap Campaign Lab Spotlight Spectacles V4 Sounds Creator Marketplace Music Lenses Spotlight on the Web Creative Kit Web Happening Now TrueSize Spectacles V3 Local Lenses Snapchat Trends Reach and Frequency Cameos Music Recognit
Slide 11: The Snapchat Experience
11 The Snapchat Experience Five core platforms MAP COMMUNICATIONS CAMERA STORIES SPOTLIGHT
Slide 12: Camera and Augmented Reality
12 Camera and Augmented Reality The Snap Camera drives visual communication between Snapchatters, and it can understand, interpret, edit, and augment a scene in real time, enabling the next generation of computing. MACHINE-LEARNING LENSES SCAN LOCAL LENSES 250M+ Snapchatters engage with AR per day o
Slide 13: Communications
13 Communications The Communications platform is where Snapchatters express themselves through pictures and messages with their closest friends. CHAT GAMES MINIS 50+ Snap Games and 15+ Minis available. Snap Inc. internal data as of March 31, 2022.
Slide 14: Stories
14 Stories Friend Stories enable our community to create and share pictures and videos from their day with their friends on Snapchat — all in chronological order. The Discover platform features curated, professional content from hand-selected partners. FRIEND STORIES DISCOVER 800+ partners in 20+ co
Slide 15: Snap Map
15 Snap Map The Snap Map is a personalized map that connects our community with their friends and the world around them through place listings and stories posted by our community. MAP MY PLACES LAYERS 250M+ Snapchatters use the Snap Map every month to find the people and places that mean the most to
Slide 16: Spotlight
16 Spotlight Spotlight surfaces the most entertaining Snaps created by our community and provides a place to share user-generated content broadly on Snapchat while remaining aligned with our privacy-by-design approach. 230% year-over-year increase in total daily time spent.1 Spotlight is available i
Slide 17: Partner Ecosystem
Partner Ecosystem
Slide 18: Overview of Our Partner Ecosystem
18 Overview of Our Partner Ecosystem Creators Publishers Developers CAMERA/AR SPOTLIGHT DISCOVER SNAP KIT GAMES MINIS
Slide 19: AR Creator Community
19 AR Creator Community Our AR creator community is made up of individuals from over 200 countries and territories who create a wide variety of AR experiences across geographies and cultures. Monetization Opportunities 250K+ Lens Creators have used Lens Studio. 2.5M+ Lenses made by our community. Sn
Slide 20: Lens Studio — AR Creator Platform
20 Lens Studio — AR Creator Platform We provide our broader creator community with the same tools used internally at Snap to develop AR Lenses by offering access to Lens Studio, a free, easy-to-use yet incredibly powerful AR-development platform. Lens creation starts with Lens Studio, whether you’re
Slide 21: Spotlight Creator Community
21 Spotlight Creator Community Through Spotlight and our powerful creative tools, creators can develop content, reach millions of Snapchatters, grow their audience, and connect with fans, all in accordance with our privacy standards. Tools Monetization Opportunities STORY STUDIO SPOTLIGHT ON THE WEB
Slide 22: Content Partners
22 Content Partners Discover features content from over 800 hand-selected partners from over 20 countries around the world.1 BEAUTY HEALTH AND FITNESS ENTERTAINMENT 75M+ 65M+ 120M+ Snapchatters watched Snapchatters watched Snapchatters watched Beauty publisher and show Health and Fitness publisher a
Slide 23: 150+ Snap Original Series Launched to Date With 70+ Partners
23 High Quality, Award-Winning Content Made for Mobile 150+ Snap Original Series Launched to Date With 70+ Partners Snap Inc. internal data as of March 31, 2022.
Slide 24: Over 1,500 apps have integrated with Snap Kit
24 Over 1,500 apps have integrated with Snap Kit across our six offerings: Camera Kit, Creative Kit, Story Kit, Login Kit, Ad Kit, and Sticker Kit. Allows developer Allows developer Allows developer partners to share partners to add our partners to enable dynamic content from Bitmoji and sticker sign
Slide 25: Camera Kit is a cross-platform SDK solution
25 Camera Kit is a cross-platform SDK solution that brings the best of our AR ecosystem to partner applications. Partners can create, schedule, and manage customized AR experiences for their applications and users. Partners gain access to a suite of powerful tools and analytics.
Slide 26: Advertising Business
Advertising Business
Slide 27: Meet the Snapchat Generation
27 Meet the Snapchat Generation 150% The Snapchat Generation is 150% more likely than non-Snapchatters to prefer to communicate with pictures over words.1 Snapchatters are 3x more likely than 3x non-Snapchatters to say they are using AR more than they did last year to try on products.2 The Snapchat
Slide 28: Why This Age Range Is Critical
28 Why This Age Range Is Critical Between the ages of 13 and 34, people experience many common milestones in life. Develops Moves Out Brand Loyalty First Car Starts Career Starts Family 13 years 34 years Vacations Alone Buys First Home Graduates First Credit Card Gets Married
Slide 29: Deep Domain Expertise in Key Enterprise Verticals
29 Deep Domain Expertise in Key Enterprise Verticals Apps, Media, and Services Automotive Commerce Consumer Packaged Goods Entertainment Health and Government Restaurants Retail Tech Telecommunications Financial Services Travel
Slide 30: Creative Ad Formats That Deliver Results
30 Creative Ad Formats That Deliver Results In-Camera Video AR Lens Filters Commercials Story Ads Collection Ads Snap Ad With Dynamic Experiences (:06 forced view) (series of 3 to 20 Snaps) App Install Product Ads
Slide 31: Goal Based Bidding Objectives
31 Goal Based Bidding Objectives Snap offers a variety of goal based bidding objectives to address every level of the sales funnel. Upper Impressions Video Views Video Views (15 Seconds) Shares Pixel Page View Story Opens App Install Swipes App Re-engage Add to Cart Pixel Add to Cart Lead Form Submis
Slide 32: The Advertiser Demand Flywheel
32 The Advertiser Demand Flywheel More Demand Better More ROI Diversity More Better Efficiency Optimization More Relevance
Slide 33: What Advertisers Are Saying
33 What Advertisers Are Saying Enterprise Emerging Agency Scaled Services
Slide 34: Our ARPU Opportunity
Our ARPU Opportunity
Slide 35: Significant DAU and ARPU Opportunities
35 Significant DAU and ARPU Opportunities North America is critical to growing revenue in the near and medium term—and we have a long runway ahead of us. North America1 195M 18 Years Old 16 years old DAU2 97M 10 Years Old 38M 16 Years Old $31 $76 $285 AVERAGE REVENUE PER USER3 Comparison is illustrat
Slide 36: Opportunity to Expand Our Market Share
36 Opportunity to Expand Our Market Share Snapchat comprises yet reaches less than 2% of the nearly half of US US digital ad market1 smartphone users.2 1 Snap Inc. internal data 2021. eMarketer 2021 estimates, Mar. 2022. Percentage calculated by dividing Snap Inc. US revenue by US digital ad market.
Slide 37: Snapchat reaches more than 70% of 13 to 34 year-olds
37 1 Snapchat reaches more than 70% of 13 to 34 year-olds in countries comprising over 2 half of the world’s digital ad spend. US UK Australia Canada France Netherlands Sweden Norway Saudi Arabia Ireland Denmark Luxembourg 1 Snap Inc. internal data Q4 2021. Penetration calculated as MAUs divided by
Slide 38: The Advertising Industry Is Moving in Our Direction
38 The Advertising Industry Is Moving in Our Direction Expected growth in advertising market combined with a secular shift toward digital. Traditional Digital eMarketer estimates, Mar. 2022.
Slide 39: AR Builds Consumer Confidence
39 AR Builds Consumer Confidence Over half of the shoppers on Snapchat agree that AR gives them more confidence about product quality.1 TRUE SIZE TECHNOLOGY WRIST TRACKING TRY-ON More than half of people want to use AR technology to assess products, allowing for a risk-free, try-before-you-buy experie
Slide 40: Long-Term Value Creation
Long-Term Value Creation
Slide 41: Growing Revenue and Scaling Efficiently
41 in millions Growing Revenue and Scaling Efficiently Revenue Revenue Revenue Average Daily Active Users1 (Unaudited) Revenue Adjusted Gross Margin2 Revenue Adjusted Gross Profit2 1 We define a Daily Active User, or DAU, as a registered Snapchat user who opens the Snapchat application at least once dur
Slide 42: Balanced Approach to Investment Driving Path to Profitability
42 in millions Balanced Approach to Investment Driving Path to Profitability Revenue Net Loss Revenue Adjusted EBITDA1 (Unaudited) Revenue Operating Cash Flow Revenue Free Cash Flow2 (Unaudited) 1 We define Adjusted EBITDA as net income (loss), excluding interest income; interest expense; other income
Slide 43: Capital Allocation
43 Capital Allocation Build a Strong Balance Sheet Invest to Drive Make Future Investments to to Ensure Strategic Flexibility Organic Growth in Top Line Accelerate Product Roadmap Focus investments in our talent $5.0 billion in cash, cash equivalents Well-established track record of base to drive in
Slide 44: Strategic M&A
44 Strategic M&A CAMERA STORIES SPECTACLES CAMERA GAMES COMMUNICATION SPECTACLES CAMERA 2015 2016 2017 2018 2019 2020 2021 2022 MAP SPECTACLES COMMUNICATION MAPS CAMERA CAMERA CAMERA
Slide 45: Long-Term Value Creation
45 Execute our international growth playbook to grow our community in the long term. Invest in innovation to deepen engagement and expand ARPU opportunity. Long-Term Value Offer a sophisticated ad platform and innovative ad units to deliver return on ad spend for partners. Creation Scale operations e
Slide 46: Appendix
Appendix
Slide 47: Free Cash Flow and Adjusted EBITDA definitions
47 1 We define Free Cash Flow as net cash provided by (used in) operating activities, reduced by purchases of property and equipment. 2 We define Adjusted EBITDA as net income (loss), excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation an
Slide 48: Snap Inc.
Snap Inc.