Snap Inc. · NYSE:SNAP
Snap — Investor Presentation (2024)
31 slides from Snap's investor presentation, 2024
Slide 1: Investor Presentation 2024
Snaplne. Snap Inc. Investor Presentation 2024
Slide 2: Disclaimers
2 Disclaimers 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 addi
Slide 3: Snap Inc. is a technology company
3 Snap Inc. is a technology company. We believe the camera presents the 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: Investment Thesis
4 We reach over 75% of the 13-34 year olds in over LARGE 25 countries1, with more than 850 million monthly active users2, on the path to our goal of 1 billion AUDIENCE monthly active users in the next two years. REVENUE Investment A scaled ad platform and a robust ad product GROWTH roadmap will deli
Slide 5: A Growing Addressable Market
A Growing Addressable Market
Slide 6: Significant Opportunity for Community Growth
6 Significant Opportunity for Community Growth North America Europe Rest of World 22% Penetration1 17% Penetration1 9% Penetration1 100M DAU2 99M DAU2 254M DAU2 ~445M Smartphones3 ~583M Smartphones3 ~2.8B Smartphones3 1 Percentage calculated by dividing Snap Inc. Q4 2024 DAUs by total smartphone esti
Slide 7: Worldwide Digital Advertising Opportunity
7 Worldwide Digital Advertising Opportunity Worldwide Digital Ad Spend Expected to Grow by ~$351B From 2024 to 2028 at an 11% CAGR Worldwide Digital Ad Spend ($B) Source: eMarketer forecast, November 2024.
Slide 8: Opportunity to Expand Our Market Share
8 Opportunity to Expand Our Market Share Snapchat comprises less than 2% of the US digital ad market…1 Yet reaches 75% of the 13- to 34-year-old population in the US.3 2024 US Digital Ad Market $309B2 1 Snap Inc. internal data as of December 31, 2024. 2 eMarketer Forecast, November 2024 3 Snap Inc.
Slide 9: Our Product
Our Product
Slide 10: Demonstrated Track Record of Innovation
10 Demonstrated Track Record of Innovation That Drives Growth in Our Community Spectacles V5
Slide 11: The Snapchat Experience
11 The Snapchat Experience Visual communication is a strategic advantage that drives retention and engagement across our products and services. SNAP MAP CHAT CAMERA STORIES SPOTLIGHT Connect with friends and Send messages, pictures, and The entry point for AR Discover content from creators Discover
Slide 12: Simple Snapchat On Track to Launch in 2025
12 Simple Snapchat On Track to Launch in 2025 A new and simplified design for Snapchat that provides users a more personal and relevant viewing experience, helps creators and publisher partners find new audiences across new surfaces, and supports our advertising business over the long-term. Open to Ca
Slide 13: Meet the Snapchat Community
13 Meet the Snapchat Community 850M+ More than 850 million monthly active users.1 #1 Staying connected with friends and family is the #1 global reason for using Snapchat.2 75% Snapchat reaches over 75% of the 13- to 34-year-old population in more than 25 countries.3 1 Snap Inc. internal data as of Q
Slide 14: Strong Growth in Our Community
14 Strong Growth in Our Community 453M Daily Active Users, On Average Daily Active Users (M) Rest of World DAU Europe DAU North America DAU Snap Inc. internal data Q1 2021–Q4 2024. See Snap Inc. public filings with the SEC. Numbers may not foot due to rounding. We define a Daily Active User, or DAU, a
Slide 15: Expanding Our Global Community
15 Relationships are what drive the depth of engagement on our platform. Our goal is to ensure RELATIONSHIPS Snapchat helps enhance relationships for our community and the people who matter most to Expanding them. Our Global CONTENT Expanding the selection of our content by DIVERSITY growing and rew
Slide 16: Creator Ecosystem
16 Creator Ecosystem CONTENT CREATORS AR CREATORS Creator Stories Augmented Reality Stories enable our community A growing community of 375,000+ to create and share pictures and Lens Creators and developers have built videos from their day with their over 4 million AR Lenses1 friends on Snapchat. Me
Slide 17: Investing in the Future of Augmented Reality
17 Investing in the Future of Augmented Reality We believe that immersive experiences will drive AR use grounded in the real world, shared with friends, and integrated into Snapchatters’ lives. AR Creation Spectacles Hardware Purpose-Built OS SnapOS Lens Studio 5.0 is an AR-first Spectacles are our c
Slide 18: Monetization
Monetization
Slide 19: Improved Direct-Response Ad Platform
19 Improved Direct-Response Ad Platform We’ve evolved our ad solutions and technology post Apple’s App Tracking Transparency framework Q1 New Q1 Unified Ad Q1 Improved Q2 AR Models Experience Signal Extensions We implemented new We redesigned our ad formats with a We launched a new and improved versi
Slide 20: Monetization: Why Snapchat?
20 Monetization: Why Snapchat? A compelling advertiser value proposition. AUDIENCE REACH ADVERTISING COMPELLING AD BRAND-SAFE AND ENGAGEMENT PERFORMANCE FORMATS ENVIRONMENT A large and engaged We have been evolving our ad We offer compelling ad In partnership with Integral Ad audience that is difficult
Slide 21: Full-Funnel Advertising
21 Full-Funnel Advertising Snap offers a variety of advertiser objectives to address every level of the sales funnel. Approximately 70% of our advertising BUILD AWARENESS revenue comes from direct-response advertisers and 30% comes from Brand Impact Website Traffic brand-oriented advertisers.1 Leads Fo
Slide 22: Creative Ad Formats That Drive Results
22 Creative Ad Formats That Drive Results Campaigns that pair AR Ads with Video Ads on Snapchat deliver 1.6x higher lift in ad awareness compared to video ads alone.1 COLLECTION SNAP AD WITH SPONSORED PROMOTED AR FILTERS AR LENSES COMMERCIALS ADS APP INSTALL SNAPS PLACES 1 2023 Amplified Intelligence
Slide 23: Snapchat+
23 Snapchat+ Subscription Service Snapchat+ is a collection of exclusive, experimental, and pre-release features on Snapchat for a subscription fee. Exclusive features and tools include pinning their best friend to allow for more engaging and fun connections. Subscribers can express themselves with
Slide 24: Long-Term Value Creation
Long-Term Value Creation
Slide 25: Significant Scale Achieved since IPO
25 Significant Scale Achieved since IPO Average Daily Active Users1 Revenue Adjusted EBITDA4 Over 2.5x Increase in DAU Over 13x Growth in TTM Revenue Adjusted EBITDA Profitability $5,361M $509M 453M 158M $404M $(459)M At IPO2 2024 At IPO3 2024 At IPO3 2024 1 We define a Daily Active User, or DAU, as a
Slide 26: We Invested in Long-Term Value Creation
26 We Invested in Long-Term Value Creation 2023 was a transformative year for the company We made significant investments in 2023 to improve Revenue Adjusted EBITDA our ad platform – which included larger ML models, ($M) ($M) improved signal ingestion, and improved ad formats. We also focused on inve
Slide 27: Robust Cash Flow Generation and Conversion
Robust Cash Flow Generation and Conversion FCF ($M) / FCF Conversion (%) Highly profitable model and topline growth balanced with investments leads to sustained positive free cash flow generation Free Cash Flow Conversion is a non-GAAP measure, which we define as Free Cash Flow divided by Adjusted EBIT
Slide 28: Long-Term Value Creation
28 Path to 1 billion MAU over the next two years Innovate to drive growth in content engagement Executing against our plan to improve our Long-Term DR business to take market share Value Creation Diversifying revenue sources Sustainable profitable growth with continued EBITDA profitability and positiv
Slide 29: Capital Allocation Priorities
29 CAPITAL Proactively address upcoming maturities STRUCTURE Diversify sources of funding given improved MANAGEMENT financial profile INVESTMENT Investing in our products and platforms IN BUSINESS Investing in our direct-response business Capital TO SUPPORT GROWTH AND SCALE Investing in AR Allocation
Slide 30: Appendix
Appendix
Slide 31: Adjusted EBITDA reconciliation notes
31 1 TTM at IPO is calculated as Q1 2016 through Q4 2016. 2 Restructuring charges in 2022 relating to the strategic reprioritization plan were composed primarily of severance and related charges of $97 million, stock-based compensation expense, lease exit and related charges, impairment charges, con