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
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
Snap (NYSE:SNAP)
Historical Stock Chart
From Feb 2025 to Mar 2025
Snap (NYSE:SNAP)
Historical Stock Chart
From Mar 2024 to Mar 2025
