Snap reports revenue increased 12% but losses continue
Snap Inc. announced financial results for the quarter and full year that ended Dec. 31, 2022. The company’s revenue increased 12% to $4.6 billion in 2022, compared to the prior year. The net loss was $1,430 million in 2022, including restructuring charges of $189 million, compared to $488 million in 2021.
“We ended a challenging 2022 with 375 million Daily Active Users, 12% year-over-year annual revenue growth, and positive full-year free cash flow,” said Evan Spiegel, CEO. “We continue to face significant headwinds as we look to accelerate revenue growth, and we are making progress driving improved return on investment for advertisers and innovating to deepen the engagement of our community.”
In the fourth quarter, the revenue was $1,300 million, compared to $1,298 million in the prior year. The quarterly net loss was $288 million, including restructuring charges of $34 million, compared to net income of $23 million in the prior year.
|
|
Three Months Ended December 31, |
|
Percent |
|
Twelve Months Ended December 31, |
|
Percent |
||||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
||||
|
(Unaudited) |
(in thousands, except per share amounts) |
||||||||||||||||||||
|
|
(NM = Not Meaningful) |
||||||||||||||||||||
|
Revenue |
$ |
1,299,735 |
|
|
$ |
1,297,885 |
|
|
0.1 |
% |
|
$ |
4,601,847 |
|
|
$ |
4,117,048 |
|
|
12 |
% |
|
Operating loss |
$ |
(287,597 |
) |
|
$ |
(25,127 |
) |
|
NM |
|
|
$ |
(1,395,306 |
) |
|
$ |
(702,069 |
) |
|
(99 |
)% |
|
Net income (loss) |
$ |
(288,460 |
) |
|
$ |
22,550 |
|
|
NM |
|
|
$ |
(1,429,653 |
) |
|
$ |
(487,955 |
) |
|
(193 |
)% |
|
Adjusted EBITDA(1) |
$ |
233,275 |
|
|
$ |
326,793 |
|
|
(29 |
)% |
|
$ |
377,573 |
|
|
$ |
616,686 |
|
|
(39 |
)% |
|
Net cash provided by (used in) operating activities |
$ |
125,291 |
|
|
$ |
185,528 |
|
|
(32 |
)% |
|
$ |
184,614 |
|
|
$ |
292,880 |
|
|
(37 |
)% |
|
Free Cash Flow(2) |
$ |
78,366 |
|
|
$ |
160,963 |
|
|
(51 |
)% |
|
$ |
55,308 |
|
|
$ |
223,005 |
|
|
(75 |
)% |
|
Diluted net income (loss) per share attributable to common stockholders |
$ |
(0.18 |
) |
|
$ |
0.01 |
|
|
NM |
|
|
$ |
(0.89 |
) |
|
$ |
(0.31 |
) |
|
(187 |
)% |
|
Non-GAAP diluted net income (loss) per share(3) |
$ |
0.14 |
|
|
$ |
0.22 |
|
|
(38 |
)% |
|
$ |
0.17 |
|
|
$ |
0.50 |
|
|
(65 |
)% |
|
(1) |
See page 10 for reconciliation of net income (loss) to Adjusted EBITDA. In the third quarter of 2022, we initiated a strategic reprioritization plan, which included a reduction of our global employee headcount by approximately 20%. Total restructuring charges included in our consolidated statements of operations for the three and twelve months ended December 31, 2022 were $34.3 million and $188.9 million, respectively. |
|
(2) |
See page 10 for reconciliation of net cash provided by (used in) operating activities to Free Cash Flow. |
|
(3) |
See page 11 for reconciliation of diluted net income (loss) per share to non-GAAP diluted net income (loss) per share. |
Q4 2022 Summary and Highlights
- (Daily Active Users) DAUs were 375 million in Q4 2022, an increase of 56 million, or 17% year-over-year.
- DAUs increased sequentially and year-over-year in each of North America, Europe, and Rest of World.
- Total time spent watching Spotlight content grew over 100% year-over-year.
- 17 content partners reached over 50 million global viewers each in Q4 2022.
- In Q4, the subscription service Snapchat+ reached over 2.0 million paying subscribers. Snapchat+ offers exclusive, experimental, and pre-release features, and in Q4 we launched new features such as Custom Story Expiration and Custom Notification Sounds, providing subscribers with over 12 exclusive features.