Snap Inc. Announces Fourth Quarter and Full Year 2024 Financial Results

Rhea-AI Summary

Snap Inc. (SNAP) reported strong Q4 2024 financial results with revenue increasing 14% year-over-year to $1.557 billion. The company achieved notable growth with Daily Active Users (DAUs) rising 9% to 453 million. Q4 marked a significant turnaround with net income of $9 million, compared to a net loss of $248 million in the prior year.

Annual revenue for 2024 grew 16% to $5.361 billion, while net loss improved to $698 million from $1.322 billion in 2023. Other Revenue, primarily from Snapchat+ subscriptions, showed impressive growth of 131% year-over-year, reaching an annualized revenue run rate exceeding $500 million. The company's advertising platform improvements led to active advertisers more than doubling in Q4, while Adjusted EBITDA increased 73% to $276 million.

Positive

• Revenue increased 14% YoY to $1.557B in Q4 2024
• Turned Q4 net loss into $9M profit (from -$248M in 2023)
• DAUs grew 9% YoY to 453M
• Active advertisers more than doubled YoY in Q4
• Snapchat+ revenue grew 131% YoY
• Adjusted EBITDA increased 73% to $276M in Q4
• Free Cash Flow grew 65% to $182M in Q4

Negative

• Annual net loss of $698M in 2024
• Operating loss of $26.9M in Q4 2024
• Restructuring charges of $72M for full year 2024

Insights

Financial Analyst

SNAP's Q4 2024 results mark a pivotal transformation in its financial trajectory, highlighted by three key developments. First, the company's achievement of profitability ($9 million net income) signals successful cost optimization efforts, with operating losses improving by 89%. This is particularly significant given the challenging digital advertising environment.

The doubling of active advertisers year-over-year, combined with improved advertising platform performance, indicates SNAP's successful pivot to small and medium-sized businesses. This diversification reduces dependency on large advertisers and suggests more stable revenue streams ahead. The 131% growth in Other Revenue, primarily from Snapchat+ subscriptions reaching a $500 million annualized run rate, demonstrates successful revenue diversification beyond advertising.

Most impressively, SNAP's cash generation capabilities have strengthened substantially. The 65% increase in Free Cash Flow to $182 million and 73% growth in Adjusted EBITDA to $276 million reflect improved operational efficiency and monetization. The company's investments in AR technology and creator ecosystems, coupled with 9% DAU growth to 453 million, position it well for sustained growth in the evolving digital media landscape.

Technology Analyst

SNAP's Q4 technological achievements underscore its emerging leadership in consumer AR applications. The 4 billion Gen AI Lens engagements from 400 million users represent unprecedented scale in consumer AR adoption. The 49% increase in Lenses posted and 40% growth in friend-to-friend Lens sharing indicate strong product-market fit and viral adoption.

The launch of Pre-Generated AI Lenses with reduced GPU utilization marks a significant technical breakthrough, potentially lowering infrastructure costs while improving performance. The expansion of Spectacles availability to six European countries, coupled with new developer tools like the Image Spatialization API, positions SNAP to build a comprehensive AR ecosystem ahead of competitors.

The introduction of educational pricing for Spectacles and Challenge Tags for developers demonstrates a strategic focus on building a sustainable AR developer community. With Lens Studio surpassing 1 million downloads and 200 million Spotlight videos created using community-made Lenses, SNAP is successfully transforming from a social media platform into a leading AR technology company.

Fourth quarter revenue increased 14% year-over-year to $1,557 million

Daily Active Users increased 9% year-over-year to 453 million

Fourth quarter net income of $9 million and Adjusted EBITDA of $276 million

Fourth quarter operating cash flow of $231 million and Free Cash Flow of $182 million

SANTA MONICA, Calif.--(BUSINESS WIRE)-- Snap Inc. (NYSE: SNAP) today announced financial results for the quarter and full year ended December 31, 2024.

“In 2024 we made significant progress on our core priorities of growing our community and improving depth of engagement, driving top line revenue growth and diversifying our revenue sources, while building toward our long-term vision for augmented reality,” said Evan Spiegel, CEO. “Active advertisers more than doubled in Q4, with the improvements we have made to our advertising platform driving improved advertiser performance and helping to grow revenue 14% year-over-year.”

Annual Financial Summary

• Revenue was $5,361 million in 2024, compared to $4,606 million in the prior year, an increase of 16% year-over-year.
• Net loss was $698 million in 2024, compared to $1,322 million in the prior year.
• Adjusted EBITDA was $509 million in 2024, compared to $162 million in the prior year.
• Operating cash flow was $413 million in 2024, compared to $247 million in the prior year.
• Free Cash Flow was $219 million in 2024, compared to $35 million in the prior year.

Q4 2024 Financial Summary

• Revenue was $1,557 million, compared to $1,361 million in the prior year, an increase of 14% year-over-year.
• Net income was $9 million, compared to a net loss of $248 million in the prior year.
• Adjusted EBITDA was $276 million, compared to $159 million in the prior year.
• Operating cash flow was $231 million, compared to $165 million in the prior year.
• Free Cash Flow was $182 million, compared to $111 million in the prior year.

	Three Months Ended December 31,								Percent Change			Twelve Months Ended December 31,								Percent Change
		2024				2023							2024				2023
(Unaudited)	(dollars in thousands, except per share amounts)
Revenue	$	1,557,283			$	1,361,287			14	%		$	5,361,398			$	4,606,115			16	%
Operating loss	$	(26,877	)		$	(248,713	)		89	%		$	(787,294	)		$	(1,398,379	)		44	%
Net income (loss)	$	9,101			$	(248,247	)		104	%		$	(697,856	)		$	(1,322,485	)		47	%
Adjusted EBITDA (1)	$	276,007			$	159,149			73	%		$	508,605			$	161,577			215	%
Net cash provided by (used in) operating activities	$	230,633			$	164,574			40	%		$	413,480			$	246,521			68	%
Free Cash Flow (2)	$	182,358			$	110,855			65	%		$	218,654			$	34,794			528	%
Diluted net income (loss) per share attributable to common stockholders	$	0.01			$	(0.15	)		107	%		$	(0.42	)		$	(0.82	)		49	%
Non-GAAP diluted net income (loss) per share (3)	$	0.16			$	0.08			100	%		$	0.29			$	0.09			222	%

(1)		See page 11 for a reconciliation of net income (loss) to Adjusted EBITDA. Total restructuring charges for the twelve months ended December 31, 2024, and excluded from Adjusted EBITDA, were $72.0 million. No restructuring charges were incurred during the three months ended December 31, 2024. Total restructuring charges for the three and twelve months ended December 31, 2023, and excluded from Adjusted EBITDA, were $22.2 million and $40.8 million, respectively.
(2)		See page 11 for a reconciliation of net cash provided by (used in) operating activities to Free Cash Flow.
(3)		See page 12 for a reconciliation of diluted net income (loss) per share to non-GAAP diluted net income (loss) per share.

Q4 2024 Summary & Key Highlights

We deepened engagement with our community:

• DAUs were 453 million in Q4 2024, an increase of 39 million, or 9% year-over-year.
• More than one billion Snaps were shared publicly on Snapchat every month in Q4 from our community, creators, and media partners.
• We continue to support and grow the number of creators in our Snap Star program, which led to an over 40% year-over-year increase in the number of creators posting content on Snapchat in Q4.
• We launched new Bitmoji stickers showcasing the latest trends for Snapchatters to react and express themselves visually.
• We announced new location sharing features in Family Center, our in-app hub for parental tools and resources, making it easier than ever for families to stay connected while out and about.

We are focused on accelerating and diversifying our revenue growth:

• Ongoing momentum with our direct response products and growth in small- and medium-size businesses contributed to total active advertisers more than doubling year-over-year in Q4.
• In Q4, Sponsored Snaps and Promoted Places grew the number of unique Snapchatters reached by advertising partners, delivering a 30% increase in reach on average in the US.
• Other Revenue, the majority of which is Snapchat+ subscription revenue, grew 131% year-over-year in 2024 and exited the year with an annualized revenue run rate well over $500 million.
• We launched new and early access Snapchat+ features including Footsteps, which helps Snapchatters keep track of the places they’ve visited on the Snap Map and new app themes and custom backgrounds.
• We announced our new unified Monetization Program for creators that allows eligible creators to monetize Spotlight videos, building on our Stories Revenue Share Program that helps creators monetize their Stories.
• We launched our first branded Dreams AI Lens with partners like Uber Eats and Tinder, and the immersive experience led to increased engagement compared to standard Lenses.

We invested in our augmented reality platform:

• Over 200 million Spotlight videos have been created this year featuring Lenses made by our talented community of Lens Creators.
• More than 400 million Snapchatters engaged with new Gen AI Lenses more than 4 billion times in Q4.
• We launched our first-ever Pre-Generated AI Lens, a groundbreaking update that significantly reduces GPU utilization during generation.
• Lens Studio has now been downloaded more than 1 million times.
• The number of Snaps with Lenses that our community posted on Snapchat in Q4 increased 49% year-over-year and the number of Snaps with Lenses sent between friends and family increased 40% year-over-year.

We are building the next generation AR operating system for Spectacles:

• We launched a new version of Snap OS, which includes new Lenses that showcase the power of the Spectacles camera and SnapML, as well as platform features and capabilities to better build and experiment.
• We introduced new first-party Lenses that help our community learn how to play piano through interactive courses and practice soccer shots through SnapML tracking models, and games that can be played with family and friends.
• Developers have already built advanced Lenses for Snap OS that help our community master the art of calligraphy, make better shots in pool, and turn outdoor walks into interactive adventures.
• We introduced more than a dozen new developer tools, including an Image Spatialization API that leverages generative AI to convert 2D images into 3D, and Spectacles Sync Kit, an improved framework that makes it easier for developers to build shared AR experiences with a new Typescript package.
• We expanded Spectacles’ availability beyond the United States to developers in six new countries: Austria, France, Germany, Italy, Netherlands, and Spain.
• We announced Challenge Tags, a new way for Snap AR developers to be rewarded for their creativity by submitting Lenses which are judged on their originality, technical excellence, and theme focus.
• To ensure Spectacles is accessible to students, teachers, and staff from colleges and universities across the world, we introduced educational pricing and a special student discount for a subscription fee of $49.50 or €55 a month.

Q1 2025 Outlook

Snap Inc. will discuss its Q1 2025 and full year 2025 outlook during its Q4 2024 Earnings Call (details below) and in its investor letter available at investor.snap.com.

Conference Call Information

Snap Inc. will host a conference call to discuss the results at 2:00 p.m. Pacific / 5:00 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 items impacting net income (loss) from time to time.

A Daily Active User (DAU) is defined as a registered and logged-in Snapchat user who visits Snapchat through our applications or websites 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 and logged-in Snapchat user who visits Snapchat through our applications or websites 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, 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, and geo-political events and conflicts, 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, partners, 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 or refinance outstanding debt, or to access additional financing; 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 our 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 events and conflicts 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 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 items impacting net income (loss) from time to time; and related income tax adjustments specific to the non-GAAP adjustments in the current period. 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,
		2024				2023				2024				2023
Cash flows from operating activities
Net income (loss)	$	9,101			$	(248,247	)		$	(697,856	)		$	(1,322,485	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		39,581				52,324				158,074				168,441
Stock-based compensation		257,731				333,197				1,041,023				1,324,004
Amortization of debt issuance costs		2,721				1,844				9,388				7,361
Losses (gains) on debt and equity securities, net		(3,706	)			27,139				8,460				33,027
Other		(10,324	)			4,140				(14,153	)			(26,958	)
Change in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable, net of allowance		(167,355	)			(153,899	)			(94,005	)			(98,127	)
Prepaid expenses and other current assets		(303	)			5,219				(36,544	)			(9,920	)
Operating lease right-of-use assets		12,892				17,295				54,127				70,674
Other assets		(6,945	)			5,430				(9,952	)			2,238
Accounts payable		11,559				140,485				(100,728	)			94,988
Accrued expenses and other current liabilities		103,620				(6,567	)			150,391				62,130
Operating lease liabilities		(18,409	)			(15,484	)			(62,663	)			(68,007	)
Other liabilities		470				1,698				7,918				9,155
Net cash provided by (used in) operating activities		230,633				164,574				413,480				246,521
Cash flows from investing activities
Purchases of property and equipment		(48,275	)			(53,719	)			(194,826	)			(211,727	)
Purchases of strategic investments		—				—				(2,000	)			(7,770	)
Sales of strategic investments		183				2,408				1,755				7,559
Cash paid for acquisitions, net of cash acquired		—				—				—				(50,254	)
Purchases of marketable securities		(342,078	)			(5,956	)			(2,287,668	)			(2,048,273	)
Sales of marketable securities		—				351,757				354,311				459,481
Maturities of marketable securities		241,378				330,980				1,411,444				2,424,717
Other		—				(2,347	)			(100	)			(2,779	)
Net cash provided by (used in) investing activities		(148,792	)			623,123				(717,084	)			570,954
Cash flows from financing activities
Proceeds from issuance of convertible notes, net of issuance costs		—				—				740,350				—
Purchase of capped calls		—				—				(68,850	)			—
Proceeds from termination of capped calls		—				—				62,683				—
Proceeds from the exercise of stock options		—				622				12,798				1,038
Repurchases of Class A non-voting common stock		—				(189,394	)			(311,069	)			(189,394	)
Deferred payments for acquisitions		—				(15,876	)			(3,695	)			(270,433	)
Repurchases of convertible notes		—				—				(859,042	)			—
Other		—				—				(1,799	)			—
Net cash provided by (used in) financing activities		—				(204,648	)			(428,624	)			(458,789	)
Change in cash, cash equivalents, and restricted cash		81,841				583,049				(732,228	)			358,686
Cash, cash equivalents, and restricted cash, beginning of period		968,393				1,199,413				1,782,462				1,423,776
Cash, cash equivalents, and restricted cash, end of period	$	1,050,234			$	1,782,462			$	1,050,234			$	1,782,462

SNAP INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts, unaudited)
	Three Months Ended December 31,								Twelve Months Ended December 31,
		2024				2023				2024				2023
Revenue	$	1,557,283			$	1,361,287			$	5,361,398			$	4,606,115
Costs and expenses:
Cost of revenue		671,660				621,504				2,474,237				2,114,117
Research and development		422,937				483,528				1,691,683				1,910,862
Sales and marketing		248,214				275,811				1,063,675				1,122,092
General and administrative		241,349				229,157				919,097				857,423
Total costs and expenses		1,584,160				1,610,000				6,148,692				6,004,494
Operating loss		(26,877	)			(248,713	)			(787,294	)			(1,398,379	)
Interest income		38,573				43,463				153,466				168,394
Interest expense		(5,813	)			(5,275	)			(21,552	)			(22,024	)
Other income (expense), net		8,382				(34,447	)			(16,846	)			(42,414	)
Income (loss) before income taxes		14,265				(244,972	)			(672,226	)			(1,294,423	)
Income tax benefit (expense)		(5,164	)			(3,275	)			(25,630	)			(28,062	)
Net income (loss)	$	9,101			$	(248,247	)		$	(697,856	)		$	(1,322,485	)
Net income (loss) per share attributable to Class A, Class B, and Class C common stockholders:
Basic	$	0.01			$	(0.15	)		$	(0.42	)		$	(0.82	)
Diluted	$	0.01			$	(0.15	)		$	(0.42	)		$	(0.82	)
Weighted average shares used in computation of net income (loss) per share:
Basic		1,681,160				1,638,714				1,659,147				1,612,504
Diluted		1,717,119				1,638,714				1,659,147				1,612,504

SNAP INC. CONSOLIDATED BALANCE SHEETS (in thousands, except par value)
	December 31, 2024				December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	1,046,534			$	1,780,400
Marketable securities		2,329,745				1,763,680
Accounts receivable, net of allowance		1,348,472				1,278,176
Prepaid expenses and other current assets		182,006				153,587
Total current assets		4,906,757				4,975,843
Property and equipment, net		489,088				410,326
Operating lease right-of-use assets		530,441				516,862
Intangible assets, net		86,363				146,303
Goodwill		1,689,785				1,691,827
Other assets		233,914				226,597
Total assets	$	7,936,348			$	7,967,758
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	173,197			$	278,961
Operating lease liabilities		24,885				49,321
Accrued expenses and other current liabilities		1,009,254				805,836
Convertible senior notes, net		36,212				—
Total current liabilities		1,243,548				1,134,118
Long-term convertible senior notes, net		3,607,717				3,749,400
Operating lease liabilities, noncurrent		575,082				546,279
Other liabilities		59,240				123,849
Total liabilities		5,485,587				5,553,646
Commitments and contingencies
Stockholders’ equity
Class A non-voting common stock, $0.00001 par value. 3,000,000 shares authorized, 1,483,718 shares issued, 1,436,495 shares outstanding at December 31, 2024, and 3,000,000 shares authorized, 1,440,541 shares issued, 1,391,341 shares outstanding at December 31, 2023.		14				14
Class B voting common stock, $0.00001 par value. 700,000 shares authorized, 22,523 shares issued and outstanding at December 31, 2024, and 700,000 shares authorized, 22,528 shares issued and outstanding at December 31, 2023.		—				—
Class C voting common stock, $0.00001 par value. 260,888 shares authorized, 231,627 shares issued and outstanding at December 31, 2024 and December 31, 2023.		2				2
Treasury stock, at cost. 47,222 and 49,200 shares of Class A non-voting common stock at December 31, 2024 and December 31, 2023, respectively.		(460,620	)			(479,903	)
Additional paid-in capital		15,644,132				14,613,404
Accumulated deficit		(12,735,461	)			(11,726,536	)
Accumulated other comprehensive income (loss)		2,694				7,131
Total stockholders’ equity		2,450,761				2,414,112
Total liabilities and stockholders’ equity	$	7,936,348			$	7,967,758

SNAP INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (in thousands, unaudited)
	Three Months Ended December 31,								Twelve Months Ended December 31,
		2024				2023				2024				2023
Free Cash Flow reconciliation:
Net cash provided by (used in) operating activities	$	230,633			$	164,574			$	413,480			$	246,521
Less:
Purchases of property and equipment		(48,275	)			(53,719	)			(194,826	)			(211,727	)
Free Cash Flow	$	182,358			$	110,855			$	218,654			$	34,794

	Three Months Ended December 31,								Twelve Months Ended December 31,
		2024				2023				2024				2023
Adjusted EBITDA reconciliation:
Net income (loss)	$	9,101			$	(248,247	)		$	(697,856	)		$	(1,322,485	)
Add (deduct):
Interest income		(38,573	)			(43,463	)			(153,466	)			(168,394	)
Interest expense		5,813				5,275				21,552				22,024
Other (income) expense, net		(8,382	)			34,447				16,846				42,414
Income tax (benefit) expense		5,164				3,275				25,630				28,062
Depreciation and amortization		39,581				43,882				154,459				159,999
Stock-based compensation expense		257,731				333,063				1,031,621				1,319,783
Payroll and other tax expense related to stock-based compensation		5,572				8,706				37,768				39,324
Restructuring charges (1)		—				22,211				72,051				40,850
Adjusted EBITDA	$	276,007			$	159,149			$	508,605			$	161,577

(1)

Restructuring charges during 2024 are primarily related to cash severance, stock-based compensation expense, and other charges associated with the 2024 restructuring. Restructuring charges in 2023 relating to the wind down of our AR Enterprise business were composed primarily of cash severance, stock-based compensation expense, and charges related to the revision of the useful lives and disposal of certain acquired intangible assets. Additionally, we recognized an income tax benefit of $5.7 million for the three and twelve months ended December 31, 2023 relating to the wind down, which is included in the income tax (benefit) expense line item above. These charges are 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,
		2024				2023				2024				2023
Depreciation and amortization expense (1):
Cost of revenue	$	1,123			$	3,171			$	6,110			$	12,751
Research and development		24,351				31,040				99,656				106,278
Sales and marketing		5,333				10,017				19,947				26,161
General and administrative		8,774				8,096				32,361				23,251
Total	$	39,581			$	52,324			$	158,074			$	168,441

(1)

Depreciation and amortization expense for the twelve months ended December 31, 2024 as well as the three and twelve months ended December 31, 2023 included 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,
		2024				2023				2024				2023
Stock-based compensation expense (1):
Cost of revenue	$	1,626			$	2,665			$	6,034			$	9,555
Research and development		165,330				220,996				683,830				893,026
Sales and marketing		56,463				70,369				216,672				255,688
General and administrative		34,312				39,167				134,487				165,735
Total	$	257,731			$	333,197			$	1,041,023			$	1,324,004

(1)

Stock-based compensation expense for the twelve months ended December 31, 2024 as well as the three and twelve months ended December 31, 2023 included restructuring charges.

	Three Months Ended December 31,								Twelve Months Ended December 31,
		2024				2023				2024				2023
Non-GAAP net income (loss) reconciliation:
Net income (loss)	$	9,101			$	(248,247	)		$	(697,856	)		$	(1,322,485	)
Amortization of intangible assets		12,557				17,484				56,839				72,778
Stock-based compensation expense		257,731				333,063				1,031,621				1,319,783
Payroll and other tax expense related to stock-based compensation		5,572				8,706				37,768				39,324
Restructuring charges (1)		—				22,211				72,051				40,850
Income tax adjustments		(5,363	)			(5,306	)			(13,240	)			(6,116	)
Non-GAAP net income (loss)	$	279,598			$	127,911			$	487,183			$	144,134
Weighted-average common shares - Diluted		1,717,119				1,638,714				1,659,147				1,612,504
Non-GAAP diluted net income (loss) per share reconciliation:
Diluted net income (loss) per share	$	0.01			$	(0.15	)		$	(0.42	)		$	(0.82	)
Non-GAAP adjustment to net income (loss)		0.15				0.23				0.71				0.91
Non-GAAP diluted net income (loss) per share	$	0.16			$	0.08			$	0.29			$	0.09

(1)

Restructuring charges during 2024 are primarily related to cash severance, stock-based compensation expense, and other charges associated with the 2024 restructuring. Restructuring charges in 2023 relating to the wind down of our AR Enterprise business were composed primarily of cash severance, stock-based compensation expense, and charges related to the revision of the useful lives and disposal of certain acquired intangible assets. Additionally, we recognized an income tax benefit of $5.7 million for the three and twelve months ended December 31, 2023 relating to the wind down, which is included in the income tax (benefit) expense line item above. These charges are not reflective of underlying trends in our business.

SNAP INC. SUPPLEMENTAL FINANCIAL INFORMATION AND BUSINESS METRICS (dollars and shares in thousands, except per user amounts, unaudited)
	Q3 2023				Q4 2023				Q1 2024				Q2 2024				Q3 2024				Q4 2024
	(NM = Not Meaningful)
Cash Flows and Shares
Net cash provided by (used in) operating activities	$	12,781			$	164,574			$	88,352			$	(21,377	)		$	115,872			$	230,633
Net cash provided by (used in) operating activities - YoY (year-over-year)		(77	)%			31	%			(42	)%			74	%			NM				40	%
Net cash provided by (used in) operating activities - TTM (trailing twelve months)	$	207,238			$	246,521			$	183,771			$	244,330			$	347,421			$	413,480
Purchases of property and equipment	$	(73,435	)		$	(53,719	)		$	(50,448	)		$	(52,062	)		$	(44,041	)		$	(48,275	)
Purchases of property and equipment - YoY		94	%			14	%			6	%			41	%			(40	)%			(10	)%
Purchases of property and equipment - TTM	$	(204,933	)		$	(211,727	)		$	(214,545	)		$	(229,664	)		$	(200,270	)		$	(194,826	)
Free Cash Flow	$	(60,654	)		$	110,855			$	37,904			$	(73,439	)		$	71,831			$	182,358
Free Cash Flow - YoY		(435	)%			41	%			(63	)%			38	%			218	%			65	%
Free Cash Flow - TTM	$	2,305			$	34,794			$	(30,774	)		$	14,666			$	147,151			$	218,654
Common shares outstanding		1,638,905				1,645,496				1,643,120				1,653,820				1,672,212				1,690,645
Common shares outstanding - YoY		2	%			5	%			3	%			2	%			2	%			3	%
Shares underlying stock-based awards		154,525				157,981				146,240				144,315				132,783				135,036
Shares underlying stock-based awards - YoY		63	%			20	%			14	%			(3	)%			(14	)%			(15	)%
Total common shares outstanding plus shares underlying stock-based awards		1,793,430				1,803,477				1,789,360				1,798,135				1,804,995				1,825,681
Total common shares outstanding plus shares underlying stock-based awards - YoY		5	%			6	%			4	%			2	%			1	%			1	%
Results of Operations
Revenue	$	1,188,551			$	1,361,287			$	1,194,773			$	1,236,768			$	1,372,574			$	1,557,283
Revenue - YoY		5	%			5	%			21	%			16	%			15	%			14	%
Revenue - TTM	$	4,544,563			$	4,606,115			$	4,812,280			$	4,981,379			$	5,165,402			$	5,361,398
Revenue by region (1)
North America	$	786,154			$	899,542			$	743,131			$	767,560			$	857,621			$	968,943
North America - YoY		(3	)%			2	%			16	%			12	%			9	%			8	%
North America - TTM	$	2,993,189			$	3,012,421			$	3,115,656			$	3,196,387			$	3,267,854			$	3,337,255
Europe	$	200,272			$	238,253			$	195,844			$	229,835			$	248,902			$	287,031
Europe - YoY		24	%			9	%			24	%			26	%			24	%			20	%
Europe - TTM	$	758,693			$	778,394			$	816,478			$	864,204			$	912,834			$	961,612
Rest of World	$	202,125			$	223,492			$	255,798			$	239,373			$	266,051			$	301,309
Rest of World - YoY		30	%			11	%			34	%			20	%			32	%			35	%
Rest of World - TTM	$	792,681			$	815,300			$	880,146			$	920,788			$	984,714			$	1,062,531
Operating loss	$	(380,063	)		$	(248,713	)		$	(333,232	)		$	(253,975	)		$	(173,210	)		$	(26,877	)
Operating loss - YoY		13	%			14	%			9	%			37	%			54	%			89	%
Operating loss - Margin		(32	)%			(18	)%			(28	)%			(21	)%			(13	)%			(2	)%
Operating loss - TTM	$	(1,437,263	)		$	(1,398,379	)		$	(1,366,347	)		$	(1,215,983	)		$	(1,009,130	)		$	(787,294	)
Net income (loss)	$	(368,256	)		$	(248,247	)		$	(305,090	)		$	(248,620	)		$	(153,247	)		$	9,101
Net income (loss) - YoY		(2	)%			14	%			7	%			34	%			58	%			104	%
Net income (loss) - Margin		(31	)%			(18	)%			(26	)%			(20	)%			(11	)%			1	%
Net income (loss) - TTM	$	(1,362,698	)		$	(1,322,485	)		$	(1,298,901	)		$	(1,170,213	)		$	(955,204	)		$	(697,856	)
Adjusted EBITDA	$	40,094			$	159,149			$	45,659			$	54,977			$	131,962			$	276,007
Adjusted EBITDA - YoY		(45	)%			(32	)%			NM				243	%			229	%			73	%
Adjusted EBITDA - Margin (2)		3	%			12	%			4	%			4	%			10	%			18	%
Adjusted EBITDA - TTM	$	235,703			$	161,577			$	206,423			$	299,879			$	391,747			$	508,605

(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 2023				Q4 2023				Q1 2024				Q2 2024				Q3 2024				Q4 2024
Other
DAU (in millions) (1)		406				414				422				432				443				453
DAU - YoY		12	%			10	%			10	%			9	%			9	%			9	%
DAU by region (in millions)
North America		101				100				100				100				100				100
North America - YoY		1	%			—	%			(1	)%			—	%			—	%			(1	)%
Europe		95				96				96				97				99				99
Europe - YoY		7	%			4	%			4	%			3	%			4	%			4	%
Rest of World		211				218				226				235				244				254
Rest of World - YoY		21	%			19	%			19	%			16	%			16	%			17	%
ARPU	$	2.93			$	3.29			$	2.83			$	2.86			$	3.10			$	3.44
ARPU - YoY		(6	)%			(5	)%			10	%			6	%			6	%			5	%
ARPU by region
North America	$	7.82			$	8.96			$	7.44			$	7.67			$	8.54			$	9.73
North America - YoY		(4	)%			2	%			17	%			12	%			9	%			9	%
Europe	$	2.11			$	2.49			$	2.04			$	2.36			$	2.52			$	2.89
Europe - YoY		15	%			5	%			20	%			22	%			19	%			16	%
Rest of World	$	0.96			$	1.03			$	1.13			$	1.02			$	1.09			$	1.19
Rest of World - YoY		8	%			(7	)%			13	%			4	%			14	%			16	%
Employees (full-time; excludes part-time, contractors, and temporary personnel)		5,367				5,289				4,835				4,719				4,800				4,911
Employees - YoY		(6	)%			—	%			(7	)%			(11	)%			(11	)%			(7	)%
Depreciation and amortization expense
Cost of revenue	$	3,184			$	3,171			$	2,150			$	1,872			$	965			$	1,123
Research and development		26,252				31,040				27,598				22,909				24,798				24,351
Sales and marketing		5,466				10,017				4,577				5,084				4,953				5,333
General and administrative		6,307				8,096				7,388				8,065				8,134				8,774
Total	$	41,209			$	52,324			$	41,713			$	37,930			$	38,850			$	39,581
Depreciation and amortization expense - YoY		14	%			8	%			18	%			(4	)%			(6	)%			(24	)%
Stock-based compensation expense
Cost of revenue	$	2,640			$	2,665			$	1,815			$	1,260			$	1,333			$	1,626
Research and development		234,615				220,996				174,519				171,465				172,516				165,330
Sales and marketing		72,783				70,369				54,656				52,208				53,345				56,463
General and administrative		47,895				39,167				32,762				34,378				33,035				34,312
Total	$	357,933			$	333,197			$	263,752			$	259,311			$	260,229			$	257,731
Stock-based compensation expense - YoY		4	%			(26	)%			(16	)%			(18	)%			(27	)%			(23	)%

(1)

Numbers may not foot due to rounding.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250204007695/en/

Investors and Analysts:

ir@snap.com

Press:

press@snap.com

Source: Snap Inc.

FAQ

What was SNAP's revenue growth in Q4 2024?

Snap Inc. reported Q4 2024 revenue of $1.557 billion, representing a 14% increase year-over-year from $1.361 billion in Q4 2023.

How many Daily Active Users (DAUs) did SNAP have in Q4 2024?

SNAP reported 453 million Daily Active Users in Q4 2024, an increase of 39 million users or 9% year-over-year.

What was SNAP's net income in Q4 2024?

SNAP reported a net income of $9 million in Q4 2024, compared to a net loss of $248 million in the same quarter of the previous year.

How much did SNAP's Snapchat+ subscription revenue grow in 2024?

SNAP's Other Revenue, primarily from Snapchat+ subscriptions, grew 131% year-over-year in 2024, reaching an annualized revenue run rate of over $500 million.

What was SNAP's Adjusted EBITDA for Q4 2024?

SNAP's Adjusted EBITDA for Q4 2024 was $276 million, a 73% increase from $159 million in Q4 2023.