Snap Inc. · NYSE:SNAP
Snap — Q1 2022 Earnings Presentation
20 slides from Snap's earnings presentation, Apr 21, 2022
Slide 1: Q1 2022 Earnings Slides
Q1 2022 Earnings Slides April 21, 2022
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: First Quarter Financial Highlights
First Quarter Financial Highlights • Revenue increased 38% year-over-year to $1,063 million in Q1 2022. Revenue • Average revenue per user increased 17% YoY to $3.20 in Q1 2022. • Operating margin improved to (26)% in Q1 2022, compared to (39)% in Q1 2021. • Adjusted gross margin1 improved to 61% in
Slide 4: Business Highlights
Business Highlights The Snapchat community is active, engaged, and growing: • DAUs were 332 million in Q1 2022, an increase of 52 million, or 18%, year-over-year. • DAUs increased sequentially and year-over-year in each of North America, Europe, and Rest of World. We invested and innovated in our au
Slide 5: Business Highlights (continued)
Business Highlights (continued) We grew our content offerings: • Total daily time spent by Snapchatters aged 25 and older engaging with shows and publisher content increased by more than 25% year-over-year. • We expanded our global content offering by partnering with News UK, TF1 and Le Monde in Fra
Slide 6: Business Highlights (continued)
Business Highlights (continued) We expanded our offering for advertisers: • Online retail platform GOAT uploaded two AR shoe try-on Lenses to its Public Profile, and saw over 1 million plays in the first week alone. • Revenue from Dynamic Ads more than tripled year-over-year, as we have increasingly
Slide 7: Revenue by Geography
Revenue by Geography (in millions, unaudited) GLOBAL NORTH AMERICA1 +38% +37% $1,298 $932 $1,067 $1,063 $982 $787 $758 $911 $702 $770 $659 $553 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 EUROPE2 REST OF WORLD +43% +38% $209 $152 $153 $162 $142 $157 $142 $114 $128 $127 $1
Slide 8: Average Daily Active Users (DAU)
Average Daily Active Users (DAU) (in millions, unaudited) GLOBAL NORTH AMERICA1 +18% +5% 319 332 293 306 280 265 95 96 97 98 92 93 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 EUROPE2 REST OF WORLD +36% +10% 150 140 130 84 120 77 78 80 82 111 74 99 Q4'20 Q1'21 Q2'21 Q3'21
Slide 9: Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) (unaudited) GLOBAL NORTH AMERICA1 +17% +31% $4.06 $9.58 $8.20 $7.77 $3.49 $7.19 $7.37 $3.44 $3.35 $3.20 $5.94 $2.74 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 EUROPE2 REST OF WORLD +30% +2% $2.54 $1.11 $1.07 $1.12 $1.91 $1.95 $1.92 $1.93 $
Slide 10: Adjusted Cost of Revenue
Adjusted Cost of Revenue1 ADJUSTED COST OF REVENUE AS A % OF REVENUE COST OF REVENUE COMPOSITION2 (in millions, unaudited) Infrastructure Costs Content & Developer Partner Costs Advertising Partner & Other Costs - 14 PPT +2% $437 $437 $429 $442 $413 $404 $377 53% $143 $182 $149 $146 45% $179 41% $14
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 +60% 7 PPT $586 55% $530 48% $464 $161 44% 43% 41% $427 $141 40% $369 $367 $127 $126 $104 $189 $1
Slide 12: Net Income (Loss) & Adjusted EBITDA
Net Income (Loss) & Adjusted EBITDA1 (dollars in millions, unaudited) NET INCOME (LOSS) ADJUSTED EBITDA Net Income (Loss) Margin Adjusted EBITDA Margin2 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 10% $327 $23 $330 75% 2% 0% $5 $280 65% (10)% (7)% (12)% 55% $(70) (15)% $2
Slide 13: Diluted Net Income (Loss) Per Share & Common Shares Outstanding
Diluted Net Income (Loss) Per Share & Common Shares Outstanding Plus Shares Underlying Stock-Based Awards (in millions, except per share data, unaudited) DILUTED NET INCOME (LOSS) PER SHARE1 COMMON SHARES OUTSTANDING PLUS SHARES UNDERLYING STOCK-BASED AWARDS Common Shares Outstanding Shares Underlyi
Slide 14: Operating Cash Flow and Free Cash Flow
Operating Cash Flow and Free Cash Flow1 (in millions, unaudited) OPERATING CASH FLOW FREE CASH FLOW $186 $161 $137 $126 $127 $106 $72 $52 $(53) $(69) $(101) $(116) Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Capex $(16) $(11) $(15) $(20) $(25) $(21) YoY Change 9% 2,835% (
Slide 15: Financial Guidance
Financial Guidance The following forward-looking statements reflect our expectations for the second quarter of 2022 as of April 21, 2022, and are subject to substantial uncertainty. This guidance assumes constant foreign currency rates and, among other things, that no business acquisitions, divestit
Slide 16: Appendix
Appendix
Slide 17: Non-GAAP Financial Measures Reconciliation – Quarterly
Non-GAAP Financial Measures Reconciliation – Quarterly (in thousands, unaudited) 1 We define Free Cash Flow as net cash provided by (used in) operating activities, reduced by purchases of property and equipment. 2We define Adjusted EBITDA as net income (loss), excluding interest income; interest exp
Slide 18: Non-GAAP Financial Measures Reconciliation - Quarterly (Continued)
Non-GAAP Financial Measures Reconciliation - Quarterly (Continued) (in thousands, except per share amounts, unaudited) 1 We define Non-GAAP Net income (loss) as net income (loss); excluding amortization of intangible assets; stock-based compensation expense and other payroll related tax expense; cer
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 DAUs for a particular quarter by adding the number of DAUs on each day of that quarte
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