Snap Inc. · NYSE:SNAP
Snap — Q2 2022 Earnings Presentation
20 slides from Snap's earnings presentation, Jul 21, 2022
Slide 1: Q2 2022 Earnings Slides
Q2 2022 Earnings Slides July 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: Second Quarter Financial Summary
Second Quarter Financial Summary • Revenue increased 13% YoY to $1,111 million in Q2 2022. Revenue • Average revenue per user decreased 4% YoY to $3.20 in Q2 2022. • Operating margin was (36)% in Q2 2022, compared to (20)% in Q2 2021. • Adjusted gross margin1 improved to 61% in Q2 2022, compared to
Slide 4: Business Highlights
Business Highlights The Snapchat community is active, engaged, and growing: • DAUs were 347 million in Q2 2022, an increase of 54 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 in our augmented realit
Slide 5: Business Highlights
Business Highlights We grew our content offerings: • Total time spent watching Spotlight content grew 59% year-over-year. • The daily average number of Snapchatters aged 25 and older engaging with shows and publisher content increased by more than 40% year-over-year. • Over 10 million Snapchatters h
Slide 6: Business Highlights
Business Highlights We expanded our offering for advertisers: • We rolled out our new AR Image Processing technology for businesses, which transforms existing 2D product photography into AR-ready assets for try-on Lenses, further simplifying the AR Lens workflow. • We rolled out Dynamic Travel Ads,
Slide 7: Revenue by Geography
Revenue by Geography (in millions, unaudited) GLOBAL NORTH AMERICA1 +13% +12% $1,298 $932 $1,067 $1,063 $1,111 $982 $787 $758 $786 $702 $770 $553 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 EUROPE2 REST OF WORLD +12% +21% $209 $162 $170 $157 $155 $152 $153 $142 $128 $127
Slide 8: Average Daily Active Users (DAU)
Average Daily Active Users (DAU) (in millions, unaudited) GLOBAL NORTH AMERICA1 +18% +4% 332 347 306 319 280 293 95 96 97 98 99 93 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 EUROPE2 REST OF WORLD +10% +35% 162 150 140 130 82 84 86 120 77 78 80 111 Q1'21 Q2'21 Q3'21 Q4'21
Slide 9: Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) (unaudited) GLOBAL NORTH AMERICA1 -4% +8% $4.06 $9.58 $8.20 $7.77 $7.93 $3.49 $7.37 $3.35 $3.20 $3.20 $5.94 $2.74 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 EUROPE2 REST OF WORLD +2% -11% $2.54 $1.07 $1.12 $1.95 $1.92 $1.93 $1.98 $0.93 $0.
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 - 5 PPT <1% $437 $429 $442 $437 $438 $413 $404 53% $143 $182 $149 $162 45% $146 $179 40%
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 +16 PPT +56% $665 60% $586 55% $530 48% $199 $464 $161 44% 43% $141 41% $427 $367 $127 $126 $212
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 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 10% $327 $23 $330 75% $- 0% 2% $280 65% (7)% (10)% $(75) $(72) $230 55% (20
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 $127 $126 $106 $137 $72 $52 $(101) $(116) $(124) $(147) Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Capex $(11) $(15) $(20) $(25) $(21) $(23) YoY Change 2,835% (4
Slide 15: Financial Guidance
Financial Guidance Given uncertainties related to the operating environment, we are not providing our expectations for revenue or adjusted EBITDA for the third quarter of 2022. 15
Slide 16: Appendix
Appendix
Slide 17: Non-GAAP Financial Measures Reconciliation – Quarterly
Non-GAAP Financial Measures Reconciliation – Quarterly (in thousands, unaudited) Three Months Ended March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 Adjusted EBITDA Reconciliation Net income (loss) $ (286,882) $ (151,664) $ (71,959) $ 22,550 $ (359,624)
Slide 18: Non-GAAP Financial Measures Reconciliation - Quarterly (Continued)
Non-GAAP Financial Measures Reconciliation - Quarterly (Continued) (in thousands, except per share amounts, unaudited) Three Months Ended March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 Non-GAAP net income (loss) reconciliation Net income (loss) $ (286,
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