Snap Inc. · NYSE:SNAP
Snap — Investor Presentation (October 2020)
43 slides from Snap's investor presentation, October 2020
Slide 1: Snap Inc. Investor Presentation
Snap Inc. Investor Presentation October 2020
Slide 2: Disclaimers
Snaplne. Disclaimers Note Regarding User Metries and Other Data, We dofine a Dally 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 fora particular quarter by adding the number of DAUs on ea
Slide 3: Disclaimers
SnapIne. Disclaimers [Note Regarding Forward Looking Statements and use of Non-GAAP financials ‘This presentation contains forward-looking statements within the meaning of Section 27A of the Secures Act and Section 2IE of the Secures Exchange Act of 1934, as amended, oF the Exchange Act, about us an
Slide 4: Snap Inc. Is a Camera Company
SnapIne. 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 togeth
Slide 5: 9 Years of Innovation
SnapIne. Replay ‘Smart Filters Stories Android Video Snaps Visual Communication Ephemeral Messaging ‘Snapchat Launch Chat Geoflters Our Story Snapeash ‘Community Filters Snap Ads 9 Years of Innovation Discover Story Explorer Snapcodes Friend Emojis, Lenses Sponsored Geofilters ‘Sponsored Lenses Voic
Slide 6: Our Community
Our Community On average 249M Daily Active Users 18% YoY Growth in Q3 2020
Slide 7: High Penetration in Developed Markets
SnapIne. High Penetration in Developed Markets We reach more than 80% of 13 to 24-year-olds and more than 60% of 13 to 34-year-olds in the UK, France, Canada, and Australia. 90% 75% of 13 to 24-Year-Old US Population of 13 to 34-Year-Old US Population
Slide 8: Progress in International Markets
Snaplne. Progress in International Markets The acceleration of growth in Rest of World reflects the benefit of our ongoing investments to better serve our community, including investments in local content, AR Lenses experiences, language support, and marketing partnerships. LOCAL LENSES LOCAL CONTEN
Slide 9: The Snapchat Generation
SnapIne. The Snapchat Generation Millennials GenZ Largest Generation in $323 Billion in Direct Buying Power US History’ $1.2 Trillion in Indirect Purchasing Power They’re expected to drive over half of the Still developing brand loyalty, which is increase in expenditure growth over the next attracti
Slide 10: Snapchat
Snapchat
Slide 11: Action Bar
SnapIne. Action Bar Our new Action Bar provides top-level navigation, so Snapchatters can get to all of their favorite things in one tap. MAP CHAT CAMERA COMMUNITY DISCOVER @°2 Chat ae Omiium 8 @o Stories koe a Discover Friends Happening Now 2OH66: Subscriptions ae Gidless ‘ » % am y a Popular on Sn
Slide 12: Snap Map
SnapIne. Snap Map Our Snap Map connects our community to their best friends and to different places around the world. MAP PLACES
Slide 13: Next-Generation Communication
Snaplne. Next-Generation Communication SNAP CHAT Yep! Just got here! om Al “Werbiy Heyyyyyy! Is anyone at the lake yet?? (Gis Daisy coming too??? [At Burrows Rood & Bayside Drive! + eou9g MINIS ister To ® maote 26.03.45" Laurent, are you ready to vote? Register to Vote Now! > Check My Status > 1,000
Slide 14: One of the Most-Used Cameras in the World
SnapIne. One of the Most-Used Cameras in the World Over 4 BILLION Snaps created every day, on average.
Slide 15: AR at Scale
Snaplne. High-frequency camera usage powers our AR platform. Our community engaged with the new Anime Lens 3 billion times in its first week. «internal data September 21 AR at Scale MACHINE-LEARNING LENSES VISUAL SEARCH LOCAL LENSES 5
Slide 16: Lens Studio
Snaplne. Lens Studio Our investments in Lens Studio continue to drive the growth of our augmented reality platform, with more than 90% of the Gen Z population in key markets like the US, France, and the UK engaging with AR on Snapchat. 16
Slide 17: Our AR Creator Community
SnapIne. Our AR Creator Community Our AR community is made up of creators from nearly 200 countries and territories who create a wide variety of AR experiences across different geographies and cultures ' Over 1.5 million Lenses have been created by our community.”
Slide 18: High Quality, Award-Winning Content Made for Mobile
ORIGINAL SNAP ORIGINAL SNAP ORIGINAL SNAP ORIGINAL GINA SNAP ORIGINAL SNAP ORIGINAL GRLS, nd) ef rs , | 1 9 ¥ High Quality, Award-Winning Content ¥ Made for Mobile
Slide 19: A Large, Engaged, and Growing Audience for Discover Content
SnapIne. A Large, Engaged, and Growing Audience for Discover Content NEWS Nearly 70% of the US Gen Z population has watched news Discover content this year. ? SPORTS 80% increase in SportsCenter viewership on Snapchat from July to September. * Hospitals are running out of masks 6 318 EXPERIMENTAL TV
Slide 20: New Snap Originals Announced
Snaplne. New Snap Originals Announced Snap Originals have reached more than 70% of the US Gen Z population in Q3. SNAP ORIGINAL qotelaion, hive Ss ae o ‘Aus all xa SNAP ORIGINAL AC SNAP ORIGINAL
Slide 21: Happening Now
SnapIne. 2 Happening Now The fastest way for Snapchatters to find out what’s going on in the world, up to the minute, at any time. Qa Discover Happening Now We’ve partnered with some of the most trusted news organizations, like The Washington Post, Bloomberg, Reuters, NBC News, ESPN, NowThis, E! New
Slide 22: Our Business
Our Business
Slide 23: Creative Ad Formats That Deliver Results
Snaplne. Creative Ad Formats That Deliver Results SNAP ADS STORY ADS AR LENSES FILTERS
Slide 24: COVERGIRL
SnapIne. COVERGIRL NEW CLEAN FRESH SBIN MILK = ‘Snap Ine, band lit survey of US Snapehat users. Control n= 409 exposed n=#29, February 2-March 20, 2020, COVERGIRL BRAND BUILDING COVERGIRL Clean Fresh came to Snapchat to get in front of the hard-to-reach Gen Z and millennial female audience. Their ca
Slide 25: adidas Dynamic Ads
SnapIne. January 1-May 31, 2020. adidas X 19.1 Turf Boots £99.95 Shop Now adidas DYNAMIC ADS In the wake of COVID-19, adidas accelerated its digital business in response to consumer demand. With e-commerce a key focus in 2020 and beyond, adidas was keen to reach new Gen Z and millennial audiences wh
Slide 26: Gucci
SnapIne. Gucci AR Gucci leveraged our sponsored AR Lenses to enable Snapchatters to virtually try on and purchase some of the brand’s most iconic shoes via Snapchat. Their AR try-on campaign was successful, resulting in 24 seconds of average Lens playtime and reaching over 18 million Snapchatters. I
Slide 27: Clearly
Snaplne. 27 Clearly Clearly, an eyewear retailer, leveraged our sponsored AR Lenses to enable users to try on different pairs of glasses, resulting in and average of 33 seconds of playtime and a nearly 6% share rate. Clearly was able to drive a full-funnel impact for their brand, achieving a 7-point
Slide 28: A Sophisticated Ad Platform
SnapIne. Snap Ads Discover Snapcodes ‘Sponsored Geofilters ‘Sponsored Lenses 08/Carrier Targeting Ads API 3P Resonance Measurement Lookalikes On-Demand Geofilters Spectacles Group Chat Story Ads Lens Studio to ‘Ads Manager GBB App Install GBB Video View Snap Pixel ‘Audience Lenses & Filter ‘Snap Pub
Slide 29: Strong Results Over Five Years
Snaplne. 29 Strong Results Over Five Years Average Revenue Per User* Total Revenue? (in millions) $8.29 $1,716 $6.29 $1,180 $4.65 $825 $2.71 $404 | — 2016 2016 2017 2015 2016 2017 2018 2019 Yo ARPU Yor Revenue 356% 72% 36% 32% 590% 104% 43% 45% Growth Growth see Sr bli flings with the SEC. We define
Slide 30: Our Opportunity
Our Opportunity
Slide 31: Significant DAU and ARPU Opportunity
SnapInc. 31 Significant DAU and ARPU Opportunity NORTH AMERICA * 198M. 16 years old v 14 years old ARPU ®
Slide 32: Building a Path to Profitability
Snaplne. Building a Path to Profitability Eight Straight Quarters of YoY Improvement in Adjusted EBITDA and TTM Average Adjusted EBITDA Leverage per User of 98% @ ARPU = @ Cost of Revenue per User’ @ OpEx per User * 2017 2018 2019 $8.29 Adj. EBITDA 2 (48)% 64% 101% Leverage per User
Slide 33: Community, Engagement, Monetization, Capital Efficiency
SnapIne. a Community x ® Engagement x Ss Monetization Free Cash Flow x ® Capital Efficiency 33
Slide 34: Grow Our Community
Snaplne. Ba Grow Our Community Improved App Performance Drives Localization Efforts in More Investing in Partnerships and Engagement and Retention Markets Marketing e Android rebuild improves performance in key e Local AR Lenses experiences = Carrier Partnerships — Verizon 5G International markets a
Slide 35: Increase Engagement
SnapIne. 35 ge Increase Engagement Scale our Augmented Reality, Discover, Map, Games and Minis Platforms AUGMENTED REALITY DISCOVER MAP GAMES MINIS 20a hie Q Discover rate 2603.4 Laurent, are you ready to vote? ‘The Rose Venice - Register to Vote Now! > pe Check My Status > v @ Happening Now =a cnt
Slide 36: Monetize Our Audience
SnapIne. Ss Monetize Our Audience We are focused on three key priorities to drive advertiser demand: 4. Improve ranking, optimization, and measurement to drive relevance and deliver ROI. © Self-serve tools, lower-funnel optimization goals, pixel purchase optimization, advanced delivery solutions 2.
Slide 37: Scale Operations Efficiently
SnapIne. 37 a Scale Operations Efficiently Multi-cCoud Infrastructure Operating Expense Discipline © Google Cloud Platform and Amazon Web Services e@ We have been making focused investments in areas partnerships allow us to scale efficiently without making of the business that are highly productive,
Slide 38: Free Cash Flow
Snaplne. Free Cash Flow (in millions, unaudited) @ FCF 2017 2018 2019 < $(341) 810 $(819) sien) YoY FCF 9) Growth (21)% 1% 58% 38
Slide 39: Laying the Groundwork for Future Scale
SnapIne. 39 2019 Laying the Groundwork for Future Scale Team Android Rebuild Scalable Ad Platform Operating Efficiency (co) Established an experienced Rebuilt our Android app to Transitioned our advertising Balanced big investments leadership team for the next access new markets. business to a scala
Slide 40: Expanding Demographics and Geographies; Increasing ARPU
Expanding Demographics and Increasing ARPU by Scaling Augmented Reality, Premium Content, Geographies Demand and ROI Gaming, Maps, Minis, and More
Slide 41: Appendix
Appendix
Slide 42: Non-GAAP Financial Measures Reconciliation
SnapIne. 42 Non-GAAP Financial Measures Reconciliation (in thousands, unaudited) define Free Cath Flow 2We define Adjusted EBITDA as: income (loss rom time to time. Se ‘Three Months Ended June 30, 2019 September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 Free Cash Flo
Slide 43: Non-GAAP Financial Measures Reconciliation (Continued)
SnapIne. Non-GAAP Financial Measures Reconciliation (Continued) (in thousands, except per share amounts, unaudited) Non-GAAP net income (loss) reconciliation Net loss Amortization of intangible assets Stock-based compensation expense Payroll tax expense related to stock-based compensation Securities