Snap Inc. Announces Fourth Quarter and Full Year 2022 Financial Results
Snap Inc. reported a 12% increase in full-year revenue to $4.6 billion for 2022, primarily driven by a 17% rise in Daily Active Users (DAUs) to 375 million. The fourth quarter achieved $1.3 billion in revenue, a slight increase from the previous year, but reported a net loss of $288 million. The company generated a positive operating cash flow of $125 million for Q4 and $185 million for the entire year. Despite facing challenges, Snap emphasized growth in engagement, with significant increases in content consumption and partnerships. The company did not provide revenue guidance for Q1 2023 due to operating environment uncertainties.
- Daily Active Users increased 17% year-over-year to 375 million.
- Full-year revenue rose 12% to $4.6 billion.
- Fourth quarter revenue of $1.3 billion maintained year-over-year.
- Second consecutive year of positive operating cash flow and Free Cash Flow, with totals of $185 million and $55 million respectively.
- Net loss of $1,429 million for 2022, a significant increase from $488 million in 2021.
- Fourth quarter net loss of $288 million compared to net income of $23 million the previous year.
- Adjusted EBITDA dropped 29% in Q4 to $233 million, reflecting a 39% decrease for the year.
Daily Active Users increased
Full year revenue of
Fourth quarter operating cash flow of
Second full year of positive operating cash flow and Free Cash Flow
“We ended a challenging 2022 with 375 million Daily Active Users,
Annual Financial Summary
-
Revenue increased
12% to$4.6 billion -
Net loss was
$1,430 million $189 million $488 million -
Third consecutive year of positive Adjusted EBITDA with
$378 million -
Second full year of positive operating cash flow and Free Cash Flow of
$185 million $55 million
Q4 2022 Financial Summary
-
Revenue was
$1,300 million $1,298 million -
Net loss was
$288 million $34 million $23 million -
Adjusted EBITDA was
$233 million $327 million -
Operating cash flow was
$125 million $186 million -
Free Cash Flow was
$78 million $161 million
|
Three Months Ended |
|
Percent
|
|
Twelve Months Ended |
|
Percent
|
||||||||||||||
|
|
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 |
(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 andFrance , ITV in theUK , MediaPro inSpain , and Bell inCanada , among others, over 60 million Snapchatters watched World Cup Stories content onSnapchat 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 inFrance and signed new agreements withBBC Studios in theUK , G+J Medien (RTL) inGermany , and Totem Global inAustralia .
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 theInstitute 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 realityLens that turns any Snapchatter into a Na'vi. This is the first ever sponsored AR Lens integration into theSoFi 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
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
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
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
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
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.”
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
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 |
|
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts, unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
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 |
|
CONSOLIDATED BALANCE SHEETS (in thousands, except par value, unaudited) |
|||||||
|
|
|
|
||||
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 |
|
|
|
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, |
|
13 |
|
|
|
14 |
|
Class B voting common stock, |
|
— |
|
|
|
— |
|
Class C voting common stock, |
|
2 |
|
|
|
2 |
|
|
|
(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 |
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (in thousands, unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
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
|
|
Twelve Months Ended
|
||||||||||||
|
|
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 |
Total depreciation and amortization expense by function:
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
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. |
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
|
|
|
Twelve Months Ended
|
|||||||||||
|
|
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
|
|
Twelve Months Ended
|
||||||||||||
|
|
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 |
(2) |
For the three months ended |
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) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
$ |
786,917 |
|
|
$ |
932,077 |
|
|
$ |
758,261 |
|
|
$ |
785,681 |
|
|
$ |
811,602 |
|
|
$ |
880,310 |
|
|
|
60 |
% |
|
|
41 |
% |
|
|
37 |
% |
|
|
12 |
% |
|
|
3 |
% |
|
|
(6 |
)% |
|
$ |
2,700,787 |
|
|
$ |
2,973,701 |
|
|
$ |
3,178,990 |
|
|
$ |
3,262,936 |
|
|
$ |
3,287,621 |
|
|
$ |
3,235,854 |
|
|
$ |
153,121 |
|
|
$ |
208,912 |
|
|
$ |
162,132 |
|
|
$ |
170,097 |
|
|
$ |
161,396 |
|
|
$ |
218,552 |
|
|
|
49 |
% |
|
|
48 |
% |
|
|
43 |
% |
|
|
12 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
$ |
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. |
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) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
96 |
|
|
|
97 |
|
|
|
98 |
|
|
|
99 |
|
|
|
100 |
|
|
|
100 |
|
|
|
7 |
% |
|
|
6 |
% |
|
|
5 |
% |
|
|
4 |
% |
|
|
4 |
% |
|
|
3 |
% |
|
|
80 |
|
|
|
82 |
|
|
|
84 |
|
|
|
86 |
|
|
|
88 |
|
|
|
92 |
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
$ |
8.20 |
|
|
$ |
9.58 |
|
|
$ |
7.77 |
|
|
$ |
7.93 |
|
|
$ |
8.13 |
|
|
$ |
8.77 |
|
|
|
49 |
% |
|
|
33 |
% |
|
|
31 |
% |
|
|
8 |
% |
|
|
(1 |
)% |
|
|
(9 |
)% |
|
$ |
1.92 |
|
|
$ |
2.54 |
|
|
$ |
1.93 |
|
|
$ |
1.98 |
|
|
$ |
1.83 |
|
|
$ |
2.38 |
|
|
|
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
Source:
FAQ
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