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Snap announces third-quarter 2019 financial results

  • Daily Active Users increased 13% year-over-year to 210 million

  • Revenue increased 50% year-over-year to $446 million

    Operating cash flow improved 43% year-over-year to $(76) million

SANTA MONICA, Calif.–(BUSINESS WIRE)–Snap Inc. today announced financial results for the quarter ended September 30, 2019.

Financial Highlights

  • Operating cash flow improved by $56 million to $(76) million in Q3 2019, compared to the prior year.
  • Free Cash Flow improved by $75 million to $(84) million in Q3 2019, compared to the prior year.
  • Common shares outstanding plus shares underlying stock-based awards totaled 1,565 million at September 30, 2019, compared with 1,476 million one year ago.
  • Revenue increased 50% to $446 million in Q3 2019, compared to the prior year.
  • Net loss improved $98 million to $(227) million in Q3 2019, compared to the prior year.
  • Adjusted EBITDA improved $96 million to $(42) million in Q3 2019, compared to the prior year.

“We delivered strong results this quarter, and we are pleased that the investments we have made are continuing to drive the growth of our community and our business,” said Evan Spiegel, CEO. “We are a high growth business, with strong operating leverage, a clear path to profitability, a distinct vision for the future, and the ability to invest over the long term. We are excited about executing on the many opportunities in front of us.”

Three Months Ended September 30,

Percent

Nine Months Ended September 30,

Percent

2019

2018

Change

2019

2018

Change

(Unaudited)

(in thousands, except per share amounts)

Cash used in operating activities

$

(76,149

)

$

(132,543

)

(43

)%

$

(238,116

)

$

(563,870

)

(58

)%

Free Cash Flow

$

(84,087

)

$

(158,828

)

47

%

$

(265,501

)

$

(661,371

)

60

%

Common shares outstanding plus shares underlying stock-based awards

1,565,208

1,476,019

6

%

1,565,208

1,476,019

6

%

Operating loss

$

(228,853

)

$

(323,371

)

(29

)%

$

(849,732

)

$

(1,073,743

)

(21

)%

Revenue

$

446,199

$

297,695

50

%

$

1,154,646

$

790,624

46

%

Net loss

$

(227,375

)

$

(325,148

)

(30

)%

$

(792,956

)

$

(1,064,243

)

(25

)%

Adjusted EBITDA

$

(42,375

)

$

(138,377

)

69

%

$

(244,537

)

$

(525,274

)

53

%

Diluted net loss per share attributable to common shareholders

$

(0.16

)

$

(0.25

)

(34

)%

$

(0.58

)

$

(0.83

)

(30

)%

Non-GAAP diluted net loss per share

$

(0.04

)

$

(0.12

)

(67

)%

$

(0.20

)

$

(0.43

)

(55

)%

Q3 2019 Summary & Key Highlights

We added 7 million Daily Active Users in the third quarter and saw increased engagement across key metrics:

  • DAUs were 210 million in Q3 2019, compared to 203 million in Q2 2019 and 186 million in Q3 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.

We continue to invest in our Discover platform, with a particular focus on building a sustainable premium content ecosystem:

  • Total daily time spent by Snapchatters watching Discover increased by 40% year-over-year.
  • In Q3 2019, more than 100 Discover channels reached a monthly audience of over 10 million viewers.
  • Our new horror-thriller Snap Original “Dead of Night” has reached over 14 million unique viewers since its premiere in September.
  • In Q3 2019, we added over 50 new channels internationally across 8 markets, and time spent on premium content internationally increased by more than 55% year-over-year.

We continue to invest in our augmented reality platform:

  • At the end of Q3 2019, over 600,000 Lenses had been created by our community through Lens Studio, up from 500,000 at the end of Q2 2019.
  • Now more than 15% of the Snaps sent every day with Lenses feature Lenses made by Snapchatters using Lens Studio, with top-performing Community Lenses reaching billions of views on Snapchat.

We continue to build on our Snap Games platform to better enhance the gaming experience for our large and engaged community:

  • In Q3 2019, we partnered with SYBO Games and launched a new multiplayer game called Subway Surfers Airtime, which was an exclusive release on Snapchat and an expansion of their hit franchise, Subway Surfers.

We continue to build and improve Snap Kit, our set of developer tools that allow our partners to bring Snapchat features into their services:

  • In September, over 100 million Snapchatters interacted with Snaps generated by our Creative Kit partner platforms.
  • We doubled the number of apps integrated with Snap Kit since Q1 2019.

We strengthened our ad platform products and capabilities to drive improved outcomes for advertisers:

  • We announced Dynamic Ads, which allows advertisers to automatically create ads in real-time based on product catalogs that can contain hundreds of thousands of products.
  • We announced that advertisers can now add swipe actions to their Commercials campaigns, allowing Snapchatters to swipe up to access a web page, view a long-form video, or view a Lens.
  • The maximum duration of Snap Ads has been extended to enable advertisers to tell more detailed brand stories through our video ad products.

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.

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