Snap announces second-quarter sales increase 17%
Snap Inc. reported revenue increased 17% to $454 million in Q2 2020, compared to the prior year, financial results for the quarter ended June 30, 2020. The net loss increased to $(326) million in Q2 2020, compared to $(255) million in the prior year.
- Operating cash flow improved by $29 million to $(67) million in Q2 2020, compared to the prior year.
- Free Cash Flow improved by $21 million to $(82) million in Q2 2020, compared to the prior year.
- Common shares outstanding plus shares underlying stock-based awards totaled 1,616 million at June 30, 2020, compared to 1,553 million one year ago.
“We continued to grow our community and business in a challenging and uncertain environment,” said Evan Spiegel, CEO. “I am proud of our team for innovating on new experiences for our community and driving value for our partners, demonstrating the importance of our service in people’s lives. We are grateful that the resilience of our business has allowed us to remain focused on our future growth and opportunity.”
|
|
Three Months Ended June 30, |
|
|
Percent |
|
|
Six Months Ended June 30, |
|
|
Percent |
|
||||||||||||
|
|
2020 |
|
|
2019 |
|
|
Change |
|
|
2020 |
|
|
2019 |
|
|
Change |
|
||||||
|
(Unaudited) |
(in thousands, except per share amounts) |
|
|||||||||||||||||||||
|
Cash used in operating activities |
$ |
(66,554 |
) |
|
$ |
(95,789 |
) |
|
|
(31 |
)% |
|
$ |
(60,271 |
) |
|
$ |
(161,967 |
) |
|
|
(63 |
)% |
|
Free Cash Flow |
$ |
(82,321 |
) |
|
$ |
(103,422 |
) |
|
|
20 |
% |
|
$ |
(86,929 |
) |
|
$ |
(181,414 |
) |
|
|
52 |
% |
|
Common shares outstanding plus shares underlying stock-based awards |
|
1,616,146 |
|
|
|
1,552,734 |
|
|
|
4 |
% |
|
|
1,616,146 |
|
|
|
1,552,734 |
|
|
|
4 |
% |
|
Operating loss |
$ |
(310,608 |
) |
|
$ |
(304,818 |
) |
|
|
2 |
% |
|
$ |
(596,972 |
) |
|
$ |
(620,879 |
) |
|
|
(4 |
)% |
|
Revenue |
$ |
454,158 |
|
|
$ |
388,021 |
|
|
|
17 |
% |
|
$ |
916,636 |
|
|
$ |
708,447 |
|
|
|
29 |
% |
|
Net loss |
$ |
(325,951 |
) |
|
$ |
(255,174 |
) |
|
|
28 |
% |
|
$ |
(631,887 |
) |
|
$ |
(565,581 |
) |
|
|
12 |
% |
|
Adjusted EBITDA |
$ |
(95,570 |
) |
|
$ |
(78,713 |
) |
|
|
(21 |
)% |
|
$ |
(176,807 |
) |
|
$ |
(202,162 |
) |
|
|
13 |
% |
|
Diluted net loss per share attributable to common stockholders |
$ |
(0.23 |
) |
|
$ |
(0.19 |
) |
|
|
20 |
% |
|
$ |
(0.44 |
) |
|
$ |
(0.42 |
) |
|
|
5 |
% |
|
Non-GAAP diluted net loss per share |
$ |
(0.09 |
) |
|
$ |
(0.06 |
) |
|
|
42 |
% |
|
$ |
(0.17 |
) |
|
$ |
(0.16 |
) |
|
|
5 |
% |
The company offered the following highlights:
Daily Active Users (DAUs) grew by 17% year-over-year:
- DAUs were 238 million in Q2 2020, an increase of 35 million or 17% year-over-year.
- DAUs increased sequentially and year-over-year in each of North America, Europe, and Rest of World.
- DAUs increased sequentially and year-over-year on each of iOS and Android platforms.
- On average, Snapchatters opened Snapchat over 30 times every day in Q2 2020.
- The daily average number of Snapchatters watching shows increased by over 45% year-over-year in Q2 2020.
- The daily average number of Snapchatters over the age of 35 engaging with Discover content increased by over 40% year-over-year in Q2 2020.
- Snap announced expanded multi-year content partnerships with Disney, ESPN, NBC, ViacomCBS, the NBA, and the NFL.
- On average, over 180 million Snapchatters engaged with augmented reality daily in Q2 2020.
- We’ve added new camera partners, such as PlantSnap, Dog Scanner, and Nutrition Scanner to provide more experiences for our community.
- We announced Voice Scan, which allows Snapchatters to activate AR Lenses with their voice.
- We announced Local Lenses, which enable shared and persistent AR experiences in much larger areas around the world.
- We launched music Lenses in Lens Explorer, a new category of Lenses that enable Snapchatters to add songs to their Lenses.
- We launched Dynamic Lenses, which allow developers to bring real-time information from their app into Snapchat Lenses.
- We launched Camera Kit for developers and brands to leverage the best of Snapchat’s AR features on their own app.
- We launched Bitmoji for Games, which allows game developers to personalize the player experience by putting players and friends directly into their games.
- We launched SnapML, which enables our Lens creator community to bring their own machine learning models directly into Lens Studio to power their Lenses.
- We partnered with Google’s new Depth API for Android devices to launch several depth-enabled Lenses and Lens Studio templates, enabling Lens creators to make Lenses using Google’s new technology.
- We launched Material Editor, a visual programming tool for making custom 3D effects in Lens Studio.