Snap announces 48 percent increase in revenue for second quarter
-
Daily Active Users increased 8% year-over-year to 203 million
-
Revenue increased 48% year-over-year to $388 million
-
Adjusted EBITDA improved 53% year-over-year to $(79) million
SANTA MONICA, Calif.–(BUSINESS WIRE)– Snap Inc. today announced financial results for the quarter ended June 30, 2019.
Financial Highlights
- Operating cash flow improved by $104 million to $(96) million in Q2 2019, compared to the prior year.
- Free Cash Flow improved by $131 million to $(103) million in Q2 2019, compared to the prior year.
- Common shares outstanding plus shares underlying stock-based awards totaled 1,553 million at June 30, 2019, compared with 1,479 million one year ago.
- Revenue increased 48% to $388 million in Q2 2019, compared to the prior year.
- Operating loss improved $53 million to $(305) million in Q2 2019, compared to the prior year.
- Net loss improved $98 million to $(255) million in Q2 2019, compared to the prior year.
- Adjusted EBITDA improved $90 million to $(79) million in Q2 2019, compared to the prior year.
“The growth in our community, engagement, and revenue is the result of several transitions we completed over the past 18 months,” said Evan Spiegel, CEO. “We look forward to building on our momentum and making significant ongoing progress in each of these areas.”
|
|
Three Months Ended June 30, |
|
Percent |
|
Six Months Ended June 30, |
|
Percent |
|
||||||||
|
|
2019 |
|
2018 |
|
Change |
|
2019 |
|
2018 |
|
Change |
|
||||
|
(Unaudited) |
(in thousands, except per share amounts) |
|||||||||||||||
|
Cash used in operating activities |
$ |
(95,789 |
) |
$ |
(199,346 |
) |
(52 |
)% |
$ |
(161,967 |
) |
$ |
(431,327 |
) |
(62) |
% |
|
Free Cash Flow |
$ |
(103,422 |
) |
$ |
(234,247 |
) |
56 |
% |
$ |
(181,414 |
) |
$ |
(502,543 |
) |
64 |
% |
|
Common shares outstanding plus shares underlying stock-based awards |
|
1,552,734 |
|
|
1,478,758 |
|
5 |
% |
|
1,552,734 |
|
|
1,478,758 |
|
5 |
% |
|
Operating loss |
$ |
(304,818 |
) |
$ |
(357,842 |
) |
(15 |
)% |
$ |
(620,879 |
) |
$ |
(750,372 |
) |
(17 |
)% |
|
Revenue |
$ |
388,021 |
|
$ |
262,263 |
|
48 |
% |
$ |
708,447 |
|
$ |
492,929 |
|
44 |
% |
|
Net loss |
$ |
(255,174 |
) |
$ |
(353,310 |
) |
(28 |
)% |
$ |
(565,581 |
) |
$ |
(739,095 |
) |
(23 |
)% |
|
Adjusted EBITDA |
$ |
(78,713 |
) |
$ |
(169,032 |
) |
53 |
% |
$ |
(202,162 |
) |
$ |
(386,897 |
) |
48 |
% |
|
Diluted net loss per share attributable to common shareholders |
$ |
(0.19 |
) |
$ |
(0.27 |
) |
(31 |
)% |
$ |
(0.42 |
) |
$ |
(0.58 |
) |
(28 |
)% |
|
Non-GAAP diluted net loss per share |
$ |
(0.06 |
) |
$ |
(0.14 |
) |
(56 |
)% |
$ |
(0.16 |
) |
$ |
(0.31 |
) |
(49 |
)% |
Q2 2019 Summary & Key Highlights
We added 13 million Daily Active Users in the second quarter and saw increased engagement across key metrics:
- DAUs were 203 million in Q2 2019, compared to 190 million in Q1 2019 and 188 million in Q2 2018.
- DAUs were up sequentially and year-over-year in each of North America, Europe, and Rest of World.
- DAUs were up sequentially and year-over-year on each of iOS and Android platforms.
- The average number of Snaps created every day grew to more than 3.5 billion in Q2 2019.
We are seeing early results from the improvements of our Android application:
- On the majority of Android devices used by new users, Snapchatters are now sending 7% more Snaps when compared to the old version, which we believe is an important leading indicator of their long-term retention.
- We saw more than a 10% increase in the retention rate of people who open Snapchat for the first time.
We continue to invest in our Discover platform, with a particular focus on building a sustainable premium content ecosystem:
- Our audience watching content on Discover every day has grown over 35% year-over-year.
- Total daily time spent by Snapchatters watching Discover increased by over 60% year-over-year.
- Total daily time spent by Snapchatters watching Shows, our 3-5 minute premium episodes that are vertically shot and quickly paced, more than tripled compared to Q2 2018.
- 90% of Snapchatters who completed the first season of “Endless Summer,” a Snap Original produced by Bunim/Murray Productions, went on to watch season two in its first month.
We continue to invest in our augmented reality platform:
- We recently launched the next generation of AR Lenses that use deep neural networks to modify a person’s appearance in real-time, and over 200 million Snapchatters played with these new Lenses in the first two weeks.
- The number of Snapchatters submitting new Lenses through Lens Studio every month grew by more than 20% from the prior quarter.
- By the end of Q2 2019, over 500,000 Lenses had been created by our community through Lens Studio.
- We saw more engagement with Lenses created by our community in Q2 2019 than the entirety of 2018.
We launched Snap Games in Q2 2019 to bring the fun of playing games with your friends to Snapchat and foster a scalable ecosystem that benefits users, developers, and Snap:
- In the past four months, we have worked with our partners to release seven new made-for-Snapchat games for our community, including three games that allow users to play as their Bitmoji.
We continue to build on and improve Snap Kit, our set of developer tools that allow our partners to bring Snapchat features into their services:
- We more than doubled the number of partner app integrations since the end of 2018.
- 11 apps created by our partners are currently in the top 100 of the iOS App Store and Google Play Store.
We strengthened our platform capabilities to drive improved outcomes for advertisers:
- We started testing our new Instant Create onboarding flow, which generates ads for businesses in three simple steps from their existing assets, be it their app or their ecommerce storefront.
- We announced the launch of Snap Select, a new way for advertisers to run unskippable Commercials within a curated set of our Shows programming.
Financial Guidance
The following forward-looking statements reflect our expectations for the third quarter of 2019 as of July 23, 2019, and are subject to substantial uncertainty. This guidance assumes, among other things, that no business acquisitions, investments, restructurings, or legal settlements are concluded in the quarter. Our results are based on assumptions that we believe to be reasonable as of this date, but may be materially affected by many factors, as discussed below in “Forward-Looking Statements.”
Q3 2019 Outlook
- Revenue is expected to be between $410 million and $435 million, compared to $298 million in Q3 2018.
- Adjusted EBITDA is expected to be between $(85) million and $(60) million, compared to $(138) million in Q3 2018.
About Snap Inc.
Snap Inc. is a camera company. We believe that reinventing the camera represents our 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.