Daily Active Users increased 17% year-over-year
to 375 million
Full year revenue of $4.6 billion and fourth
quarter revenue of $1.3 billion
Fourth quarter operating cash flow of $125
million and Free Cash Flow of $78 million
Second full year of positive operating cash
flow and Free Cash Flow
Snap Inc. (NYSE: SNAP) today announced financial results for the
quarter and full year ended December 31, 2022.
“We ended a challenging 2022 with 375 million Daily Active
Users, 12% year-over-year annual revenue growth, and positive full
year Free Cash Flow," said Evan Spiegel, CEO. "We continue to face
significant headwinds as we look to accelerate revenue growth, and
we are making progress driving improved return on investment for
advertisers and innovating to deepen the engagement of our
community.”
Annual Financial Summary
- Revenue increased 12% to $4.6 billion in 2022, compared to the
prior year.
- Net loss was $1,430 million in 2022, including restructuring
charges of $189 million, compared to $488 million in 2021.
- Third consecutive year of positive Adjusted EBITDA with $378
million in 2022.
- Second full year of positive operating cash flow and Free Cash
Flow of $185 million and $55 million, respectively.
Q4 2022 Financial Summary
- Revenue was $1,300 million, compared to $1,298 million in the
prior year.
- Net loss was $288 million, including restructuring charges of
$34 million, compared to net income of $23 million in the prior
year.
- Adjusted EBITDA was $233 million, compared to $327 million in
the prior year.
- Operating cash flow was $125 million, compared to $186 million
in the prior year.
- Free Cash Flow was $78 million, compared to $161 million in the
prior year.
Three Months Ended December
31,
Percent Change
Twelve Months Ended December
31,
Percent Change
2022
2021
2022
2021
(Unaudited)
(in thousands, except per
share amounts)
(NM = Not Meaningful)
Revenue
$
1,299,735
$
1,297,885
0.1
%
$
4,601,847
$
4,117,048
12
%
Operating loss
$
(287,597
)
$
(25,127
)
NM
$
(1,395,306
)
$
(702,069
)
(99
)%
Net income (loss)
$
(288,460
)
$
22,550
NM
$
(1,429,653
)
$
(487,955
)
(193
)%
Adjusted EBITDA(1)
$
233,275
$
326,793
(29
)%
$
377,573
$
616,686
(39
)%
Net cash provided by (used in) operating
activities
$
125,291
$
185,528
(32
)%
$
184,614
$
292,880
(37
)%
Free Cash Flow(2)
$
78,366
$
160,963
(51
)%
$
55,308
$
223,005
(75
)%
Diluted net income (loss) per share
attributable to common stockholders
$
(0.18
)
$
0.01
NM
$
(0.89
)
$
(0.31
)
(187
)%
Non-GAAP diluted net income (loss) per
share(3)
$
0.14
$
0.22
(38
)%
$
0.17
$
0.50
(65
)%
(1)
See page 10 for reconciliation of net income (loss) to Adjusted
EBITDA. In the third quarter of 2022, we initiated a strategic
reprioritization plan, which included a reduction of our global
employee headcount by approximately 20%. Total restructuring
charges included in our consolidated statements of operations for
the three and twelve months ended December 31, 2022 were $34.3
million and $188.9 million, respectively.
(2)
See page 10 for reconciliation of net cash provided by (used in)
operating activities to Free Cash Flow.
(3)
See page 11 for reconciliation of diluted net income (loss) per
share to non-GAAP diluted net income (loss) per share.
Q4 2022 Summary & Key Highlights
We grew and deepened our engagement with our
community:
- DAUs were 375 million in Q4 2022, an increase of 56 million, or
17% year-over-year.
- DAUs increased sequentially and year-over-year in each of North
America, Europe, and Rest of World.
- Total time spent watching Spotlight content grew over 100%
year-over-year.
- 17 content partners reached over 50 million global viewers each
in Q4 2022.
- Through our broadcast partnerships with beIN SPORTS in Qatar
and France, ITV in the UK, MediaPro in Spain, and Bell in Canada,
among others, over 60 million Snapchatters watched World Cup
Stories content on Snapchat and over 285 million Snapchatters
engaged with World Cup AR.
- We renewed our partnerships with UFC and the Washington Post in
the US. Internationally, we expanded our partnership with Groupe M6
in France and signed new agreements with BBC Studios in the UK, G+J
Medien (RTL) in Germany, and Totem Global in Australia.
We are focused on expanding and diversifying our revenue
growth:
- In Q4, our subscription service Snapchat+ reached over 2.0
million paying subscribers. Snapchat+ offers exclusive,
experimental, and pre-release features, and in Q4 we launched new
features such as Custom Story Expiration and Custom Notification
Sounds, providing subscribers with over 12 exclusive features.
- We've improved the accessibility of Conversions API (CAPI) by
enabling access through four new third-party partners, closing the
year with 12 total, making CAPI more accessible to all advertisers
on our platform.
- We’ve accelerated our commerce integrations through the launch
of our partnership with BigCommerce, enabling tens of thousands of
merchants to seamlessly sync catalogs and run Dynamic Ads.
- We've partnered with Smartly.io to unlock growth and drive
performance through real time automation. Through Smartly.io’s
creative and campaign management tools, brands can tap into their
automated ads by scaling thousands of targeted versions.
- Thousands of brands continued investing in their organic
presence on Snapchat via Public Profiles for Businesses to build
deeper connections, and grow their audience and organic
engagements.
We invested in our augmented reality platform:
- Over 300,000 AR creators and developers have built more than 3
million AR Lenses.
- In our latest Lens Studio release, we unveiled several new
features including garment, earring, and wrist wear try‑on.
- We powered more than 161 million product trials by over 35
million Snapchatters for Walmart, leveraging Catalog-Powered
Shopping Lenses at-scale.
- We launched a new Camera Kit integration with H&M enabling
an AR try-on experience of their collection of immersive AR
fashion, co-designed by H&M and the Institute of Digital
Fashion.
- Luxottica Sunglass Hut drove over 14 million try-ons through
Catalog-powered Shopping Lenses.
- In celebration of the film Avatar: The Way of Water, we teamed
up with Disney to create an augmented reality Lens that turns any
Snapchatter into a Na'vi. This is the first ever sponsored AR Lens
integration into the SoFi Stadium infinity screen surprising and
delighting attendees.
- In partnership with New Balance, we created a Holiday Gifting
Concierge Lens to offer Snapchatters gifting inspiration using
augmented reality and speech recognition via voiceML.
- We announced a first-of-its-kind Bitmoji Drop in partnership
with adidas that allows Snapchatters to use Snap Tokens to claim an
exclusive adidas track jacket. Snapchatters viewed the Bitmoji Drop
banner over 280 million times.
Financial Guidance
Given uncertainties related to the operating environment, we are
not providing our expectations for revenue or adjusted EBITDA for
the first quarter of 2023.
Conference Call Information
Snap Inc. will host a conference call to discuss the results at
2:30 p.m. Pacific / 5:30 p.m. Eastern today. The live audio webcast
along with supplemental information will be accessible at
investor.snap.com. A recording of the webcast will also be
available following the conference call.
Snap Inc. uses its websites (including snap.com and
investor.snap.com) as means of disclosing material non-public
information and for complying with its disclosure obligation under
Regulation FD.
Definitions
Free Cash Flow is defined as net cash provided by (used in)
operating activities, reduced by purchases of property and
equipment.
Common shares outstanding plus shares underlying stock-based
awards includes common shares outstanding, restricted stock units,
restricted stock awards, and outstanding stock options.
Adjusted EBITDA is defined as net income (loss), excluding
interest income; interest expense, other income (expense), net;
income tax benefit (expense); depreciation and amortization;
stock-based compensation expense; payroll and other tax expense
related to stock-based compensation; and certain other non-cash or
non-recurring items impacting net income (loss) from time to
time.
A Daily Active User (DAU) is defined 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 quarter
and dividing that sum by the number of days in that quarter.
Average revenue per user (ARPU) is defined as quarterly revenue
divided by the average DAUs.
A Monthly Active User (MAU) is defined as a registered Snapchat
user who opens the Snapchat application at least once during the
30-day period ending on the calendar month-end. We calculate
average Monthly Active Users for a particular quarter by
calculating the average of the MAUs as of each calendar month-end
in that quarter.
Note: For adjustments and additional information regarding the
non-GAAP financial measures and other items discussed, please see
“Non-GAAP Financial Measures,” “Reconciliation of GAAP to Non-GAAP
Financial Measures,” and “Supplemental Financial Information and
Business Metrics.”
About Snap Inc.
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. For more information, visit
snap.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, or the Securities Act, and Section 21E of the Securities
Exchange Act of 1934, as amended, or the Exchange Act, about us and
our industry that involve substantial risks and uncertainties. All
statements other than statements of historical facts contained in
this press release, including statements regarding guidance, our
future results of operations or financial condition, our future
stock repurchase programs or stock dividends, business strategy and
plans, user growth and engagement, product initiatives, objectives
of management for future operations, and advertiser and partner
offerings, are forward-looking statements. In some cases, you can
identify forward-looking statements because they contain words such
as “anticipate,” “believe,” “contemplate,” “continue,” “could,”
“estimate,” “expect,” “going to,” “intend,” “may,” “plan,”
“potential,” “predict,” “project,” “should,” “target,” “will,” or
“would” or the negative of these words or other similar terms or
expressions. We caution you that the foregoing may not include all
of the forward-looking statements made in this press release.
You should not rely on forward-looking statements as predictions
of future events. We have based the forward-looking statements
contained in this press release primarily on our current
expectations and projections about future events and trends,
including our financial outlook, macroeconomic uncertainty,
geo-political conflicts, and the COVID-19 pandemic, that we believe
may continue to affect our business, financial condition, results
of operations, and prospects. These forward-looking statements are
subject to risks and uncertainties related to: our financial
performance; our ability to attain and sustain profitability; our
ability to generate and sustain positive cash flow; our ability to
attract and retain users, publishers, and advertisers; competition
and new market entrants; managing our growth and future expenses;
compliance with new laws, regulations, and executive actions; our
ability to maintain, protect, and enhance our intellectual
property; our ability to succeed in existing and new market
segments; our ability to attract and retain qualified team members
and key personnel; our ability to repay outstanding debt; future
acquisitions, divestitures, or investments; and the potential
adverse impact of climate change, natural disasters, health
epidemics, macroeconomic conditions, and war or other armed
conflict, as well as risks, uncertainties, and other factors
described in “Risk Factors” and elsewhere in our most recent
periodic report filed with the U.S. Securities and Exchange
Commission, or SEC, which is available on the SEC’s website at
www.sec.gov. Additional information will be made available in Snap
Inc.’s periodic report that will be filed with the SEC for the
period covered by this press release and other filings that we make
from time to time with the SEC. In addition, any forward-looking
statements contained in this press release are based on assumptions
that we believe to be reasonable as of this date. We undertake no
obligation to update any forward-looking statements to reflect
events or circumstances after the date of this press release or to
reflect new information or the occurrence of unanticipated events,
including future developments related to geo-political conflicts,
the COVID-19 pandemic, and macroeconomic conditions, except as
required by law.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with GAAP, we use certain
non-GAAP financial measures, as described below, to understand and
evaluate our core operating performance. These non-GAAP financial
measures, which may be different than similarly titled measures
used by other companies, are presented to enhance investors’
overall understanding of our financial performance and should not
be considered a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP.
We use the non-GAAP financial measure of Free Cash Flow, which
is defined as net cash provided by (used in) operating activities,
reduced by purchases of property and equipment. We believe Free
Cash Flow is an important liquidity measure of the cash that is
available, after capital expenditures, for operational expenses and
investment in our business and is a key financial indicator used by
management. Additionally, we believe that Free Cash Flow is an
important measure since we use third-party infrastructure partners
to host our services and therefore we do not incur significant
capital expenditures to support revenue generating activities. Free
Cash Flow is useful to investors as a liquidity measure because it
measures our ability to generate or use cash. Once our business
needs and obligations are met, cash can be used to maintain a
strong balance sheet and invest in future growth.
We use the non-GAAP financial measure of Adjusted EBITDA, which
is defined as net income (loss); excluding interest income;
interest expense; other income (expense), net; income tax benefit
(expense); depreciation and amortization; stock-based compensation
expense; payroll and other tax expense related to stock-based
compensation; and certain other non-cash or non-recurring items
impacting net income (loss) from time to time. We believe that
Adjusted EBITDA helps identify underlying trends in our business
that could otherwise be masked by the effect of the expenses that
we exclude in Adjusted EBITDA.
We use the non-GAAP financial measure of non-GAAP net income
(loss), which is defined as net income (loss); excluding
amortization of intangible assets; stock-based compensation
expense; payroll and other tax expense related to stock-based
compensation; certain other non-cash or non-recurring items
impacting net income (loss) from time to time; and related income
tax adjustments. Non-GAAP net income (loss) and weighted average
diluted shares are then used to calculate non-GAAP diluted net
income (loss) per share. Similar to Adjusted EBITDA, we believe
these measures help identify underlying trends in our business that
could otherwise be masked by the effect of the expenses we exclude
in the measure.
We believe that these non-GAAP financial measures provide useful
information about our financial performance, enhance the overall
understanding of our past performance and future prospects, and
allow for greater transparency with respect to key metrics used by
our management for financial and operational decision-making. We
are presenting these non-GAAP measures to assist investors in
seeing our financial performance through the eyes of management,
and because we believe that these measures provide an additional
tool for investors to use in comparing our core financial
performance over multiple periods with other companies in our
industry.
For a reconciliation of these non-GAAP financial measures to the
most directly comparable GAAP financial measure, please see
“Reconciliation of GAAP to Non-GAAP Financial Measures.”
Snap Inc., “Snapchat,” and our other registered and common law
trade names, trademarks, and service marks are the property of Snap
Inc. or our subsidiaries.
SNAP INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands, unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2022
2021
2022
2021
Cash flows from operating
activities
Net income (loss)
$
(288,460
)
$
22,550
$
(1,429,653
)
$
(487,955
)
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization
48,491
34,863
202,173
119,141
Stock-based compensation
450,574
297,564
1,387,787
1,092,135
Amortization of debt issuance costs
1,837
1,010
6,865
4,311
Losses (gains) on debt and equity
securities, net
21,279
(65,525
)
36,838
(289,052
)
Induced conversion expense related to
convertible notes
—
—
—
41,538
Other
(741
)
4,624
15,596
8,643
Change in operating assets and
liabilities, net of effect of acquisitions:
Accounts receivable, net of allowance
(182,216
)
(154,923
)
(119,780
)
(332,967
)
Prepaid expenses and other current
assets
(8,803
)
(11,045
)
(40,917
)
(26,607
)
Operating lease right-of-use assets
18,236
12,041
71,441
47,258
Other assets
12,129
(5,476
)
(504
)
(10,916
)
Accounts payable
(13,950
)
36,149
46,492
53,579
Accrued expenses and other current
liabilities
88,890
27,366
71,706
117,092
Operating lease liabilities
(22,455
)
(14,029
)
(68,886
)
(49,294
)
Other liabilities
480
359
5,456
5,974
Net cash provided by (used in) operating
activities
125,291
185,528
184,614
292,880
Cash flows from investing
activities
Purchases of property and equipment
(46,925
)
(24,565
)
(129,306
)
(69,875
)
Purchases of strategic investments
(13,996
)
(7,650
)
(26,346
)
(41,160
)
Sales of strategic investments
—
342
63,276
36,777
Cash paid for acquisitions, net of cash
acquired
(35,409
)
(134,324
)
(67,067
)
(310,915
)
Purchases of marketable securities
(753,372
)
(542,217
)
(3,485,638
)
(2,438,983
)
Sales of marketable securities
23,799
12,000
75,716
379,555
Maturities of marketable securities
704,773
529,981
2,525,215
2,536,725
Other
16
(562
)
(18,125
)
(1,897
)
Net cash provided by (used in) investing
activities
(121,114
)
(166,995
)
(1,062,275
)
90,227
Cash flows from financing
activities
Proceeds from issuance of convertible
notes, net of issuance costs
—
—
1,483,500
1,137,227
Purchase of capped calls
—
—
(177,000
)
(86,825
)
Proceeds from the exercise of stock
options
401
2,916
4,272
14,671
Payments of debt issuance costs
—
—
(3,006
)
—
Repurchases of Class A non-voting common
stock
(500,539
)
—
(1,001,052
)
—
Net cash provided by (used in) financing
activities
(500,138
)
2,916
306,714
1,065,073
Change in cash, cash equivalents, and
restricted cash
(495,961
)
21,449
(570,947
)
1,448,180
Cash, cash equivalents, and restricted
cash, beginning of period
1,919,737
1,973,274
1,994,723
546,543
Cash, cash equivalents, and restricted
cash, end of period
$
1,423,776
$
1,994,723
$
1,423,776
$
1,994,723
Supplemental disclosures
Cash paid for income taxes, net
$
3,121
$
9,105
$
12,087
$
25,333
Cash paid for interest
$
682
$
638
$
8,873
$
10,887
SNAP INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per share
amounts, unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2022
2021
2022
2021
Revenue
$
1,299,735
$
1,297,885
$
4,601,847
$
4,117,048
Costs and expenses:
Cost of revenue
481,311
449,151
1,815,342
1,750,246
Research and development
584,942
434,195
2,109,800
1,565,467
Sales and marketing
295,150
245,228
1,118,746
792,764
General and administrative
225,929
194,438
953,265
710,640
Total costs and expenses
1,587,332
1,323,012
5,997,153
4,819,117
Operating loss
(287,597
)
(25,127
)
(1,395,306
)
(702,069
)
Interest income
28,698
1,554
58,597
5,199
Interest expense
(5,312
)
(4,050
)
(21,459
)
(17,676
)
Other income (expense), net
(20,043
)
63,204
(42,529
)
240,175
Loss before income taxes
(284,254
)
35,581
(1,400,697
)
(474,371
)
Income tax benefit (expense)
(4,206
)
(13,031
)
(28,956
)
(13,584
)
Net income (loss)
$
(288,460
)
$
22,550
$
(1,429,653
)
$
(487,955
)
Net income (loss) per share attributable
to Class A, Class B, and Class C common stockholders:
Basic
$
(0.18
)
$
0.01
$
(0.89
)
$
(0.31
)
Diluted
$
(0.18
)
$
0.01
$
(0.89
)
$
(0.31
)
Weighted average shares used in
computation of net income (loss) per share:
Basic
1,573,883
1,604,778
1,608,304
1,558,997
Diluted
1,573,883
1,668,879
1,608,304
1,558,997
SNAP INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except par value,
unaudited)
December 31, 2022
December 31,
2021
Assets
Current assets
Cash and cash equivalents
$
1,423,121
$
1,993,809
Marketable securities
2,516,003
1,699,076
Accounts receivable, net of allowance
1,183,092
1,068,873
Prepaid expenses and other current
assets
134,431
92,244
Total current assets
5,256,647
4,854,002
Property and equipment, net
271,777
202,644
Operating lease right-of-use assets
370,952
322,252
Intangible assets, net
204,480
277,654
Goodwill
1,646,120
1,588,452
Other assets
279,562
291,302
Total assets
$
8,029,538
$
7,536,306
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
181,774
$
125,282
Operating lease liabilities
46,485
52,396
Accrued expenses and other current
liabilities
987,340
674,108
Total current liabilities
1,215,599
851,786
Convertible senior notes, net
3,742,520
2,253,087
Operating lease liabilities,
noncurrent
386,271
325,509
Other liabilities
104,450
315,756
Total liabilities
5,448,840
3,746,138
Commitments and contingencies
Stockholders’ equity
Class A non-voting common stock, $0.00001
par value. 3,000,000 shares authorized, 1,371,242 shares issued,
1,319,930 shares outstanding at December 31, 2022 and 3,000,000
shares authorized, 1,364,887 shares issued and outstanding at
December 31, 2021.
13
14
Class B voting common stock, $0.00001 par
value. 700,000 shares authorized, 22,529, shares issued and
outstanding at December 31, 2022 and 700,000 shares authorized,
22,769 shares issued and outstanding at December 31, 2021.
—
—
Class C voting common stock, $0.00001 par
value. 260,888 shares authorized, 231,627 shares issued and
outstanding at December 31, 2022 and 260,888 shares authorized,
231,627 shares issued and outstanding at December 31, 2021.
2
2
Treasury stock, at cost. 51,312 shares of
Class A non-voting common stock at December 31, 2022.
(500,514
)
—
Additional paid-in capital
13,309,828
12,069,097
Accumulated deficit
(10,214,657
)
(8,284,466
)
Accumulated other comprehensive income
(loss)
(13,974
)
5,521
Total stockholders’ equity
2,580,698
3,790,168
Total liabilities and stockholders’
equity
$
8,029,538
$
7,536,306
SNAP INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(in thousands, unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2022
2021
2022
2021
Free Cash Flow reconciliation:
Net cash provided by (used in) operating
activities
$
125,291
$
185,528
$
184,614
$
292,880
Less:
Purchases of property and equipment
(46,925
)
(24,565
)
(129,306
)
(69,875
)
Free Cash Flow
$
78,366
$
160,963
$
55,308
$
223,005
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2022
2021
2022
2021
Adjusted EBITDA reconciliation:
Net income (loss)
$
(288,460
)
$
22,550
$
(1,429,653
)
$
(487,955
)
Add (deduct):
Interest income
(28,698
)
(1,554
)
(58,597
)
(5,199
)
Interest expense
5,312
4,050
21,459
17,676
Other (income) expense, net
20,043
(63,204
)
42,529
(240,175
)
Income tax (benefit) expense
4,206
13,031
28,956
13,584
Depreciation and amortization
34,975
34,863
186,434
119,141
Stock-based compensation expense
446,339
297,564
1,353,283
1,092,135
Payroll and other tax expense related to
stock-based compensation
5,172
19,493
44,213
107,479
Restructuring charges (1)
34,386
—
188,949
—
Adjusted EBITDA
$
233,275
$
326,793
$
377,573
$
616,686
(1)
Restructuring charges in 2022 were composed primarily of
severance and related charges of $6.0 million and $97.1 million for
the three and twelve months ended December 31, 2022, respectively,
stock-based compensation expense, lease exit and related charges,
impairment charges, contract termination charges, and intangible
asset amortization. These charges are non-recurring and not
reflective of underlying trends in our business.
Total depreciation and amortization expense by function:
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2022
2021
2022
2021
Depreciation and amortization expense:
(1)
Cost of revenue
$
8,114
$
4,832
$
24,235
$
19,711
Research and development
29,834
19,444
98,041
62,159
Sales and marketing
6,130
7,118
67,169
21,772
General and administrative
4,413
3,469
12,728
15,499
Total
$
48,491
$
34,863
$
202,173
$
119,141
(1)
Depreciation and amortization expense in
2022 includes restructuring charges.
SNAP INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES (continued)
(in thousands, except per share
amounts, unaudited)
Total stock-based compensation expense by
function:
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2022
2021
2022
2021
Stock-based compensation expense: (1)
Cost of revenue
$
4,248
$
2,586
$
12,288
$
17,221
Research and development
319,447
202,953
970,746
740,130
Sales and marketing
69,346
45,991
203,092
164,241
General and administrative
57,533
46,034
201,661
170,543
Total
$
450,574
$
297,564
$
1,387,787
$
1,092,135
(1)
Stock-based compensation expense in 2022
includes restructuring charges.
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2022
2021
2022
2021
Non-GAAP net income (loss)
reconciliation:
Net income (loss)
$
(288,460
)
$
22,550
$
(1,429,653
)
$
(487,955
)
Amortization of intangible assets
18,073
20,228
123,413
63,184
Stock-based compensation expense
446,339
297,564
1,353,283
1,092,135
Payroll and other tax expense related to
stock-based compensation
5,172
19,493
44,213
107,479
Restructuring charges (1)
34,386
—
188,949
—
Income tax adjustments
(988
)
(374
)
(2,507
)
(192
)
Non-GAAP net income (loss)
$
214,522
$
359,461
$
277,698
$
774,651
Weighted-average common shares - Diluted
(2)
1,573,883
1,668,879
1,608,304
1,558,997
Non-GAAP diluted net income (loss) per
share reconciliation:
Diluted net income (loss) per share
$
(0.18
)
$
0.01
$
(0.89
)
$
(0.31
)
Non-GAAP adjustment to net income
(loss)
0.32
0.21
1.06
0.81
Non-GAAP diluted net income (loss) per
share
$
0.14
$
0.22
$
0.17
$
0.50
(1)
Restructuring charges in 2022 were
composed primarily of severance and related charges of $6.0 million
and $97.1 million for the three and twelve months ended December
31, 2022, respectively, stock-based compensation expense, lease
exit and related charges, impairment charges, contract termination
charges, and intangible asset amortization. These charges are
non-recurring and not reflective of underlying trends in our
business.
(2)
For the three months ended December 31,
2021, the weighted average common shares used in computation of
diluted net income per share excludes shares underlying outstanding
convertible notes and capped calls as such shares were
antidilutive. For the three and twelve months ended December 31,
2022 and the twelve months ended December 31, 2021, the weighted
average common shares used in computation of diluted net loss per
share excludes shares underlying outstanding stock-based awards,
convertible notes, and capped calls as such shares were
anti-dilutive.
SNAP INC.
SUPPLEMENTAL FINANCIAL
INFORMATION AND BUSINESS METRICS
(dollars and shares in thousands,
except per user amounts, unaudited)
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
(NM = Not Meaningful)
Cash Flows and Shares
Net cash provided by (used in) operating
activities
$
71,552
$
185,528
$
127,459
$
(124,081
)
$
55,945
$
125,291
Net cash provided by (used in) operating
activities - YoY (year-over-year)
231
%
453
%
(7
)%
23
%
(22
)%
(32
)%
Net cash provided by (used in) operating
activities - TTM (trailing twelve months)
$
54,807
$
292,880
$
283,453
$
260,458
$
244,851
$
184,614
Purchases of property and equipment
$
(19,836
)
$
(24,565
)
$
(21,175
)
$
(23,370
)
$
(37,836
)
$
(46,925
)
Purchases of property and equipment -
YoY
35
%
49
%
95
%
60
%
91
%
91
%
Purchases of property and equipment -
TTM
$
(61,757
)
$
(69,875
)
$
(80,199
)
$
(88,946
)
$
(106,946
)
$
(129,306
)
Free Cash Flow
$
51,716
$
160,963
$
106,284
$
(147,451
)
$
18,109
$
78,366
Free Cash Flow - YoY
174
%
333
%
(16
)%
(27
)%
(65
)%
(51
)%
Free Cash Flow - TTM
$
(6,950
)
$
223,005
$
203,254
$
171,512
$
137,905
$
55,308
Common shares outstanding
1,605,153
1,619,283
1,632,563
1,644,974
1,605,868
1,574,086
Common shares outstanding - YoY
8
%
8
%
7
%
4
%
—
%
(3
)%
Shares underlying stock-based awards
92,726
82,814
75,066
92,105
94,772
131,718
Shares underlying stock-based awards -
YoY
(33
)%
(34
)%
(32
)%
(12
)%
2
%
59
%
Total common shares outstanding plus
shares underlying stock-based awards
1,697,879
1,702,097
1,707,629
1,737,079
1,700,640
1,705,804
Total common shares outstanding plus
shares underlying stock-based awards - YoY
5
%
4
%
5
%
3
%
—
%
—
%
Results of Operations
Revenue
$
1,067,471
$
1,297,885
$
1,062,727
$
1,110,909
$
1,128,476
$
1,299,735
Revenue - YoY
57
%
42
%
38
%
13
%
6
%
0.1
%
Revenue - TTM
$
3,730,485
$
4,117,048
$
4,410,191
$
4,538,992
$
4,599,997
$
4,601,847
Revenue by region (1)
North America
$
786,917
$
932,077
$
758,261
$
785,681
$
811,602
$
880,310
North America - YoY
60
%
41
%
37
%
12
%
3
%
(6
)%
North America - TTM
$
2,700,787
$
2,973,701
$
3,178,990
$
3,262,936
$
3,287,621
$
3,235,854
Europe
$
153,121
$
208,912
$
162,132
$
170,097
$
161,396
$
218,552
Europe - YoY
49
%
48
%
43
%
12
%
5
%
5
%
Europe - TTM
$
560,616
$
627,920
$
676,433
$
694,262
$
702,537
$
712,177
Rest of World
$
127,433
$
156,896
$
142,334
$
155,131
$
155,478
$
200,873
Rest of World - YoY
53
%
42
%
38
%
21
%
22
%
28
%
Rest of World - TTM
$
469,082
$
515,427
$
554,768
$
581,794
$
609,839
$
653,816
Operating loss
$
(180,824
)
$
(25,127
)
$
(271,527
)
$
(400,940
)
$
(435,242
)
$
(287,597
)
Operating loss - YoY
(8
)%
74
%
11
%
(108
)%
(141
)%
NM
Operating loss - Margin
(17
)%
(2
)%
(26
)%
(36
)%
(39
)%
(22
)%
Operating loss - TTM
$
(774,178
)
$
(702,069
)
$
(669,990
)
$
(878,418
)
$
(1,132,836
)
$
(1,395,306
)
Net income (loss)
$
(71,959
)
$
22,550
$
(359,624
)
$
(422,067
)
$
(359,502
)
$
(288,460
)
Net income (loss) - YoY
64
%
120
%
(25
)%
(178
)%
(400
)%
NM
Net income (loss) - TTM
$
(623,604
)
$
(487,955
)
$
(560,697
)
$
(831,100
)
$
(1,118,643
)
$
(1,429,653
)
Adjusted EBITDA
$
174,199
$
326,793
$
64,468
$
7,190
$
72,640
$
233,275
Adjusted EBITDA - YoY
209
%
97
%
3872
%
(94
)%
(58
)%
(29
)%
Adjusted EBITDA - Margin (2)
16
%
25
%
6
%
1
%
6
%
18
%
Adjusted EBITDA - TTM
$
455,502
$
616,686
$
682,863
$
572,650
$
471,091
$
377,573
(1)
Total revenue for geographic reporting is
apportioned to each region based on our determination of the
geographic location in which advertising impressions are delivered,
as this approximates revenue based on user activity. This
allocation is consistent with how we determine ARPU.
(2)
We define Adjusted EBITDA margin as
Adjusted EBITDA divided by GAAP revenue.
SNAP INC.
SUPPLEMENTAL FINANCIAL
INFORMATION AND BUSINESS METRICS (continued)
(dollars and shares in thousands,
except per user amounts, unaudited)
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Other
DAU (in millions)
306
319
332
347
363
375
DAU - YoY
23
%
20
%
18
%
18
%
19
%
17
%
DAU by region (in millions)
North America
96
97
98
99
100
100
North America - YoY
7
%
6
%
5
%
4
%
4
%
3
%
Europe
80
82
84
86
88
92
Europe - YoY
11
%
11
%
10
%
10
%
11
%
12
%
Rest of World
130
140
150
162
175
183
Rest of World - YoY
49
%
41
%
36
%
35
%
34
%
31
%
ARPU
$
3.49
$
4.06
$
3.20
$
3.20
$
3.11
$
3.47
ARPU - YoY
28
%
18
%
17
%
(4
)%
(11
)%
(15
)%
ARPU by region
North America
$
8.20
$
9.58
$
7.77
$
7.93
$
8.13
$
8.77
North America - YoY
49
%
33
%
31
%
8
%
(1
)%
(9
)%
Europe
$
1.92
$
2.54
$
1.93
$
1.98
$
1.83
$
2.38
Europe - YoY
34
%
33
%
30
%
2
%
(5
)%
(6
)%
Rest of World
$
0.98
$
1.12
$
0.95
$
0.96
$
0.89
$
1.10
Rest of World - YoY
3
%
1
%
2
%
(11
)%
(9
)%
(2
)%
Employees (full-time; excludes part-time,
contractors, and temporary personnel)
5,190
5,661
6,131
6,446
5,706
5,288
Employees - YoY
40
%
47
%
52
%
38
%
10
%
(7
)%
Depreciation and amortization
expense
Cost of revenue
$
4,876
$
4,832
$
5,512
$
5,061
$
5,548
$
8,114
Research and development
17,321
19,444
22,123
22,362
23,722
29,834
Sales and marketing
6,306
7,118
7,392
49,061
4,586
6,130
General and administrative
4,007
3,469
3,073
2,807
2,435
4,413
Total
$
32,510
$
34,863
$
38,100
$
79,291
$
36,291
$
48,491
Depreciation and amortization expense -
YoY
49
%
53
%
62
%
180
%
12
%
39
%
Stock-based compensation
expense
Cost of revenue
$
9,132
$
2,586
$
2,446
$
2,849
$
2,745
$
4,248
Research and development
198,893
202,953
182,866
221,650
246,783
319,447
Sales and marketing
51,675
45,991
42,071
48,577
43,098
69,346
General and administrative
41,198
46,034
48,061
45,734
50,333
57,533
Total
$
300,898
$
297,564
$
275,444
$
318,810
$
342,959
$
450,574
Stock-based compensation expense - YoY
57
%
35
%
16
%
24
%
14
%
51
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230131005967/en/
Investors and Analysts: ir@snap.com Press: press@snap.com
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