Snap Inc. reports first quarter 2018 results
Snap Inc. Reports First Quarter 2018 Results
VENICE, Calif.–(BUSINESS WIRE)– Snap Inc. (NYSE: SNAP) today announced financial results for the quarter ended March 31, 2018.
First Quarter 2018 Financial Highlights:
| Three Months Ended
March 31, |
Percent | |||||||||||
| 2018 | 2017 | Change | ||||||||||
| (Unaudited) | (dollars in thousands) | |||||||||||
| Revenue | $ | 230,666 | $ | 149,648 | 54 | % | ||||||
| Net loss(1) | $ | (385,785 | ) | $ | (2,208,837 | ) | (83 | )% | ||||
| Adjusted EBITDA(2) | $ | (217,867 | ) | $ | (188,243 | ) | 16 | % | ||||
| Other Financial Highlights | ||||||||||||
| Cash, cash equivalents, and marketable securities | $ | 1,821,353 | ||||||||||
| Cash used in operating activities | $ | (231,981 | ) | $ | (154,997 | ) | ||||||
| Free Cash Flow(3) | $ | (268,296 | ) | $ | (172,990 | ) | ||||||
| Capital expenditures | $ | (36,315 | ) | $ | (17,993 | ) | ||||||
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(1) |
Net loss for the three months ended March 31, 2017 includes $2.0 billion of stock-based compensation expense, primarily due to the recognition of expense related to RSUs with a performance condition satisfied on the effectiveness of the registration statement for our initial public offering in March 2017. |
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(2) |
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 and related payroll tax expense; and certain other non-cash or non-recurring items impacting net income (loss) from time to time, as described below. |
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(3) |
Free Cash Flow is defined as net cash used in operating activities, reduced by purchases of property and equipment. |
Note: For adjustments and additional information regarding the non-GAAP financial measures discussed, please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below.
Operational Highlights
- Daily Active Users (DAU)(1) grew from 166 million in Q1 2017 to 191 million in Q1 2018, an increase of 15% year-over-year. DAUs increased 2% quarter-over-quarter, from 187 million in Q4 2017.
- Revenue was $230.7 million in Q1 2018, up 54% year-over-year driven by growth in Snap Ads, and down 19% sequentially, primarily due to seasonality and our redesign.
- Average revenue per user (ARPU)(2) was $1.21 in Q1 2018, up 34% year-over-year and down 21% sequentially. Cost of revenue per user (CoRPU)(3)was $1.03 in Q1 2018, up 5% year-over-year and 1% sequentially.
- Adjusted EBITDA loss was $(217.9) million in Q1 2018, an increase of 16% year-over-year and 37% sequentially.
- Cash and marketable securities were $1.8 billion at March 31, 2018. Cash management reduced cash burn by 13% sequentially, to $222 million. Capital expenditures increased to $36.3 million in Q1 2018 compared to $18.0 million in Q1 2017 and $21.2 million in Q4 2017.
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(1) |
We define a Daily Active User, or DAU, as a registered Snapchat user who opens the Snapchat application at least once during a defined 24-hour period. We measure average Daily Active Users for a particular quarter by calculating the average Daily Active Users for that quarter. |
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(2) |
We define average revenue per user, or ARPU, as quarterly revenue divided by the average Daily Active Users. |
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(3) |
We define cost of revenue per user, or CoRPU, as quarterly cost of revenue divided by the average Daily Active Users. |
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