Snap Inc. · NYSE:SNAP
Snap — Q4 2020 Earnings Presentation
20 slides from Snap's earnings presentation, Feb 4, 2021
Slide 1: Q4 2020 Earnings Slides
Q4 2020 Earnings Slides February 4, 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: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights • Revenue increased 62% YoY to $911 million. Revenue • Average revenue per user increased 33% YoY to $3.44. • Adjusted gross margin1 improved to 59%, compared to 56% in Q4 2019. • Operating margin improved to (11)%, compared to (45)% in Q4 2019. Operating • Net lo
Slide 4: Business Highlights
Business Highlights We saw increased engagement across key metrics: • DAUs were 265 million in Q4 2020, an increase of 47 million, or 22%, 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
Slide 5: Business Highlights (Continued)
Business Highlights (Continued) We continue to invest in our camera and augmented reality platforms: • Over 200 million daily active users engage with augmented reality every day on average. • In December, we held our third annual augmented reality Lens Fest event celebrating our Lens Creator commun
Slide 6: Business Highlights (Continued)
Business Highlights (Continued) We continue to innovate to better serve our large and engaged community: • We launched Spotlight, our newest platform surfacing the most entertaining Snaps from our community, and our early investments have helped Spotlight grow to over 100 million monthly active user
Slide 7: Revenue by Geography
Revenue by Geography (in millions, unaudited) GLOBAL NORTH AMERICA1 +62% +73% $911 $659 $679 $561 $493 $446 $462 $454 $382 $316 $316 $307 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 EUROPE2 REST OF WORLD +54% +27% $142 $92 $102 $111 $69 $76 $79 $87 $83 $62 $70 $69 Q3'19 Q
Slide 8: Average Daily Active Users (DAU)
Average Daily Active Users (DAU) (in millions, unaudited) GLOBAL NORTH AMERICA1 +22% +6% 265 238 249 229 210 218 92 84 86 88 90 90 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 EUROPE2 REST OF WORLD +10% +55% 70 71 72 74 99 65 67 87 71 77 61 64 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20
Slide 9: Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) (unaudited) GLOBAL NORTH AMERICA1 +33% +63% $7.19 $3.44 $5.49 $2.58 $2.73 $4.42 $2.12 $3.75 $3.57 $3.40 $2.02 $1.91 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 EUROPE2 REST OF WORLD +39% -18% $1.91 $1.35 $1.11 $1.37 $1.43 $1.01 $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 COMPOSITION (in millions, unaudited) Infrastructure Cost Partner Arrangement Cost -3 PPT Other +53% $377 53% 53% $48 49% 44% 42% 41% $285 $247 $246 $36 $243 $147 $217 $33 $32 $27 $26 $75 $58 $50 $52 $45 $174 $182 $1
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 +36% -8 PPT $369 $338 68% 64% $307 $104 61% $298 $271 $271 $91 50% $87 48% $102 $83 $81 40% $124
Slide 12: Net Loss & Adjusted EBITDA
Net Loss & Adjusted EBITDA1 (dollars in millions, unaudited) NET LOSS ADJUSTED EBITDA Net Loss Margin Adjusted EBITDA Margin2 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 $166 (12)% 18% 8% (29)% 8% (51)% (43)% (9)% $42 $56 (18)% (21)% (66)% $(113) (72)% $(42) $(81) $(200)
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) Cash Provided by (Used in) Operating Activities Capital Expenditures Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 $6 $(11) $(5) $(55) $(53) $(67) $(67) $(76) $(15) $(16) $(9) $(69) $(16) $(70) $(8) $(76) $(84) $(82) FCF YoY Change 47% 49% 94% 2
Slide 15: Financial Guidance
Financial Guidance The following forward-looking statements reflect our expectations for the first quarter of 2021 as of February 4, 2021, and are subject to substantial uncertainty. This guidance assumes constant foreign currency rates, and among other things, that no business acquisitions, investm
Slide 16: Appendix
Appendix
Slide 17: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation (in thousands, unaudited) Three Months Ended September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Free Cash Flow Reconciliation Net cash used in operating activities $ (76,149) $ (66,842) $ 6,283 $ (66,554)
Slide 18: Non-GAAP Financial Measures Reconciliation (Continued)
Non-GAAP Financial Measures Reconciliation (Continued) (in thousands, except per share amounts, unaudited) Three Months Ended September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Non-GAAP net income (loss) reconciliation Net loss $ (227,375) $ (240,7
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 Daily Active Users for a particular quarter by adding the number of DAUs on each day
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