Snap announces second quarter net loss widens
Snap Inc. today announced financial results for the quarter ended June 30, 2022. The company reported revenue increased 13% year-over-year to $1.111 billion and operating cash flow was $(124) million and free cash flow was $(147) million. The net loss was $422 million, compared to $152 million in the prior year.
“While the continued growth of our community increases the long-term opportunity for our business, our financial results for Q2 do not reflect our ambition,” said Evan Spiegel, CEO. “We are evolving our business and strategy to reaccelerate revenue growth, including innovating on our products, investing heavily in our direct response advertising business, and cultivating new sources of revenue to help diversify our topline growth.”
Snap Inc. also announced its Board of Directors has authorized a stock repurchase program of up to $500 million of its Class A common stock. The goal of the program is to utilize the company’s strong balance sheet to offset a portion of the dilution related to the issuance of restricted stock units to employees as part of the overall compensation program designed to foster an ownership culture.
Repurchases under this program will be funded from existing cash and cash equivalents. As of June 30, 2022, Snap had $4.9 billion in cash and cash equivalents, restricted cash, and marketable securities.
Snapchat second-quarter summary and highlights
The Snapchat community is active, engaged, and growing:
- DAUs were 347 million in Q2 2022, an increase of 54 million, or 18%, year-over-year.
- DAUs increased sequentially and year-over-year in each of North America, Europe, and Rest of World.
Snapchat invested in AR platform:
- Snapchat released the latest version of Lens Studio, which introduces several features to improve Lens capabilities around ray tracing, lighting, shadows, reflections, and depth and expands its API library and Lens Analytics offerings.
- Snapchat launched Lens Cloud, a collection of backend services that expands the types of AR experiences developers can create.
- Snapchat introduced the Snap 3D Asset Manager, a web content management platform for businesses to manage their 3D product catalog, facilitating the AR Lens creation process.
- Snapchat released Dress Up, the newest AR destination on Snapchat where users can discover and browse personalized AR fashion and try-on experiences from creators, retailers, and fashion brands like Dior, Gucci, and Louis Vuitton.
- Snapchat added AR Shopping to its Camera Kit offering, allowing businesses like Puma to integrate try-on Lenses into their own mobile applications.
- Snapchat partnered with Vogue to launch a new AR Landmarker Lens and exhibition, Vogue x Snapchat: Redefining the Body– Snapchatters visiting La Malmaison in Cannes, and around the world, browsed and virtually tried on clothing from leading fashion brands like Balenciaga and Versace.
- Snapchat partnered with Tiffany & Co. to create AR try-on Lenses, making it possible for anyone to wear and experience some of their most iconic heritage pieces. They used Camera Kit to bring Lenses into their own mobile application, which enriched the experience of their Vision & Virtuosity exhibition at the Saatchi Gallery in London.
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|
Three Months Ended June 30, |
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|
Percent |
|
|
Six Months Ended June 30, |
|
|
Percent |
|
||||||||||||
|
|
2022 |
|
|
2021 |
|
|
Change |
|
|
2022 |
|
|
2021 |
|
|
Change |
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||||||
|
(Unaudited) |
(in thousands, except per share amounts) |
|
|
|
|
|
|||||||||||||||||
|
Revenue |
$ |
1,110,909 |
|
|
$ |
982,108 |
|
|
|
13 |
% |
|
$ |
2,173,636 |
|
|
$ |
1,751,692 |
|
|
|
24 |
% |
|
Operating loss |
$ |
(400,940 |
) |
|
$ |
(192,512 |
) |
|
|
(108 |
)% |
|
$ |
(672,467 |
) |
|
$ |
(496,118 |
) |
|
|
(36 |
)% |
|
Net loss |
$ |
(422,067 |
) |
|
$ |
(151,664 |
) |
|
|
(178 |
)% |
|
$ |
(781,691 |
) |
|
$ |
(438,546 |
) |
|
|
(78 |
)% |
|
Adjusted EBITDA(1) |
$ |
7,190 |
|
|
$ |
117,403 |
|
|
|
(94 |
)% |
|
$ |
71,658 |
|
|
$ |
115,694 |
|
|
|
(38 |
)% |
|
Net cash provided by (used in) operating activities |
$ |
(124,081 |
) |
|
$ |
(101,086 |
) |
|
|
(23 |
)% |
|
$ |
3,378 |
|
|
$ |
35,800 |
|
|
|
(91 |
)% |
|
Free Cash Flow(2) |
$ |
(147,451 |
) |
|
$ |
(115,709 |
) |
|
|
(27 |
)% |
|
$ |
(41,167 |
) |
|
$ |
10,326 |
|
|
|
(499 |
)% |
|
Diluted net loss per share attributable to common stockholders |
$ |
(0.26 |
) |
|
$ |
(0.10 |
) |
|
|
(164 |
)% |
|
$ |
(0.48 |
) |
|
$ |
(0.29 |
) |
|
|
(67 |
)% |
|
Non-GAAP diluted net (loss) income per share(3) |
$ |
(0.02 |
) |
|
$ |
0.10 |
|
|
|
(118 |
)% |
|
$ |
(0.04 |
) |
|
$ |
0.10 |
|
|
|
(144 |
)% |
|
Common shares outstanding plus shares underlying stock-based awards |
|
1,737,079 |
|
|
|
1,681,260 |
|
|
|
3 |
% |
|
|
1,737,079 |
|
|
|
1,681,260 |
|
|
|
3 |
% |