Snap Inc. · NYSE:SNAP
Snap — Q3 2017 Earnings Presentation
14 slides from Snap's earnings presentation, Nov 7, 2017
Slide 1: Q3 2017 Earnings Report
Q3 2017 Earnings Report November 7, 2017
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: Quarterly Average Daily Active Users
Quarterly Average Daily Active Users (in millions, unaudited) Global North America1 173 178 166 75 77 68 71 158 65 153 2.5Bn+ 3Bn+ 3.5Bn+ Daily Daily Daily Snaps Snaps Snaps Created Created Created Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Europe2 Rest of World 55 57 57 44 52 40 42
Slide 4: Quarterly Revenue by Geography
Quarterly Revenue by Geography (in millions, unaudited) North America1 Europe2 Rest of World $208 $182 $166 $150 $128 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 North America $115 $145 $129 $148 $167 Europe $12 $15 $13 $22 $27 Rest of World $2 $6 $8 $12 $13 Numbers may not foot due to rounding. Total revenue for
Slide 5: Quarterly Average Revenue Per User (ARPU)
Quarterly Average Revenue Per User (ARPU) (unaudited) Global North America1 $1.17 $2.15 $2.17 $1.05 $1.05 $1.97 $0.90 $1.76 $1.81 $0.84 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Europe2 Rest of World $0.48 $0.39 $0.29 $0.30 $0.28 $0.24 $0.24 $0.19 $0.15 $0.04 Q3'16 Q4'16 Q1'17 Q2'1
Slide 6: Cost of Revenue
Cost of Revenue1 (unaudited) Cost of Revenue Composition (in millions) Hosting Cost per DAU Hosting Cost Revenue Share Cost Other $164 $152 $147 $142 $21 $127 $17 $18 $0.72 $20 $22 $0.68 $22 $0.64 $0.61 $11 $23 $0.60 $19 $23 $113 $121 $99 $106 $97 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q3'16 Q4'16 Q1'17 Q2'1
Slide 7: Capital Expenditures
Capital Expenditures (unaudited, in millions) $30.50 $26 $25.50 $20 $19 $20.50 $17 $18 $15.50 $10.50 $5.50 $0.50 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Capital Expenditures per DAU $0.11 $0.13 $0.11 $0.11 $0.15 Capital Expenditures remain modest 7
Slide 8: Operating Expense
Operating Expense1 (in millions, unaudited) Research and Development Sales and Marketing General and Administrative $229 $223 $196 $74 $66 $166 $62 $64 $110 $69 $71 $56 $39 $47 $33 $78 $86 $87 $55 $38 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 SBC–Related Expense $15 $7 $1,993 $240 $224 D&A Expense $7 $9 $11 $10
Slide 9: Adjusted EBITDA and Free Cash Flow
Adjusted EBITDA and Free Cash Flow1 (in millions, unaudited) Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 $0 ($50) ($100) $(109) ($150) $(152) $(179) $(188) ($200) $(194) ($250) Free Cash Flow $(234) $(188) $(173) $(229) $(220) Reduced capital expenditures should better align Adjusted EBITDA and FCF results over t
Slide 10: Appendix
Appendix
Slide 11: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation (in thousands, unaudited) 1 We define Adjusted EBITDA as net income (loss), excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation and amortization; stock-based compensation expense and related p
Slide 12: Non-GAAP Financial Measures Reconciliation (continued)
Non-GAAP Financial Measures Reconciliation (continued) (in thousands, unaudited) 1 We define Non-GAAP Net Loss as net income (loss); excluding amortization of intangible assets; stock-based compensation expense and related payroll tax expense; certain other non-cash or non-recurring items impacting
Slide 13: 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 measure average Daily Active Users for a particular quarter by calculating the average Daily Active Use
Slide 14: 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. For example, before June 2015, we used a third party that counted a Dail