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Press Release: Snap Inc. Announces Fourth Quarter and Full Year 2020 Financial Results

· 02/04/2021 16:10
-- Revenue is estimated to be between $720 million and $740 million, compared to $462 million in Q1 2020. -- Adjusted EBITDA is estimated to be between $(70) and $(50) million, compared to $(81) million in Q1 2020.-- We launched Spotlight, our newest platform surfacing the most entertaining Snaps from our community, and our early investments have helped Spotlight grow to over 100 million monthly active users in January. -- We launched our first Snap Kit integration with Twitter, enabling Snapchatters to easily share what's happening on Twitter over the Snapchat camera on iOS, with Android soon to come. -- We partnered with Unity to extend the reach of Unity's ads to Snapchat advertisers through the Snap Audience Network, as well as bring Snap technology to game developers through Snap Kit. -- We released Bitmoji Paint, our internally developed Snap game allowing Snapchatters to paint different pixelated canvases using their Bitmoji avatar along with other users around the world.-- We partnered with NYX Professional Makeup, Ralph Lauren, Sweat, and The New York Times to launch augmented reality-powered advertising experiences. -- We implemented a partnership with Perfect Corp to enable more than 200 beauty brands to upload their catalogs to the Snap Camera for augmented reality try-on. -- We added app install as a goal-based bidding objective for sponsored AR Lenses. -- We launched Snap Connect, an extension of our online learning portal Snap Focus that focuses specifically on direct response advertising. -- OnePlus (India) created Lenses for Diwali as a means to bring people together safely during a pandemic. Their Lenses garnered over 80 million impressions and reached over 14 million Snapchatters in India.-- Over 200 million daily active users engage with augmented reality every day on average. -- In December, we held our third annual augmented reality Lens Fest event celebrating our Lens Creator community and their AR creations, which attracted over 5,000 attendees joining virtually. -- Our 'Cartoon' Lens powered by real time machine learning generated 1 billion impressions in its first three days after launch. -- We added the ability for Snapchatters using Scan to search food and wine labels, surfacing nutritional information and tasting notes in partnership with nutrition app Yuka and wine app Vivino. -- We released updates to Lens Studio, introducing new tools and workflows to better manage, create, and load Lenses, while adding capabilities for developers to build LiDAR-powered Lenses. -- We launched our first-ever 5G-enabled Landmarker Lens in partnership with Verizon. The Lens uses our augmented reality technology and Verizon's 5G Ultra Wideband capabilities to bring the soul band Black Pumas at the New York Public Library to life.-- Over 90% of the U.S. Gen Z population watched Shows and publisher content in Q4 2020. -- Total daily time spent by Snapchatters over the age of 35 engaging with Shows and publisher content increased by more than 30% year-over-year. -- Digital native creator of sports and lifestyle content Wave.tv reached an average monthly audience of 64 million Snapchatters. -- "Will From Home", our popular Snap Original featuring Will Smith, returned to Snapchat for its highly anticipated second season. -- We launched a record 97 new international Discover channels in Q4 2020.-- DAUs were 265 million in Q4 2020, an increase of 47 million, or 22%, 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 both iOS and Android platforms. -- On average, Snapchatters opened Snapchat 30 times every day in Q4 2020.Three Months Ended Twelve Months Ended December 31, Percent December 31, Percent ----------------------- ------------------------ 2020 2019 Change 2020 2019 Change ---------- ---------- ------- ---------- ----------- ------- (Unaudited) (in thousands, except per share amounts) Cash used in operating activities(1) $ (52,545) $ (66,842) (21)% $ (167,644) $ (304,958) (45)% Free Cash Flow(1) $ (68,992) $ (75,935) 9% $ (225,476) $ (341,436) 34% Common shares outstanding plus shares underlying stock-based awards 1,629,620 1,576,035 3% 1,629,620 1,576,035 3% Operating loss $ (97,236) $ (253,596) (62)% $ (862,072) $(1,103,328) (22)% Revenue $ 911,322 $ 560,888 62% $2,506,626 $ 1,715,534 46% Net loss(2) $ (113,099) $ (240,704) (53)% $ (944,839) $(1,033,660) (9)% Adjusted EBITDA $ 165,609 $ 42,307 291% $ 45,163 $ (202,230) 122% Diluted net loss per share attributable to common stockholders $ (0.08) $ (0.17) (53)% $ (0.65) $ (0.75) (13)% Non-GAAP diluted net income (loss) per share $ 0.09 $ 0.03 200% $ (0.06) $ (0.16) 63% (1) Cash used in operating activities and free cash flow for the three and twelve months ended December 31, 2020 includes a $98 million payment from non-recurring legal charges related to the securities class action in 2019. See page 10 for reconciliation of net loss to Adjusted EBITDA. (2) Net loss for the three and twelve months ended December 31, 2019 includes $100 million of non-recurring legal charges. See page 10 for reconciliation of net loss to Adjusted EBITDA.-- Operating cash flow improved by $14 million to $(53) million in Q4 2020, compared to the prior year. -- Free Cash Flow improved by $7 million to $(69) million in Q4 2020, compared to the prior year. -- Common shares outstanding plus shares underlying stock-based awards totaled 1,630 million at December 31, 2020, compared to 1,576 million one year ago. -- Revenue increased 62% to $911 million in Q4 2020, compared to the prior year. -- Net loss and Adjusted EBITDA were $(113) million and $166 million in Q4 2020, respectively, compared to $(241) million and $42 million in the prior year, respectively. -- Net loss and Adjusted EBITDA were $(945) million and $45 million in 2020, respectively, compared to $(1.0) billion and $(202) million in the prior year, respectively.SANTA MONICA, Calif.--(BUSINESS WIRE)--February 04, 2021--

Snap Inc. Announces Fourth Quarter and Full Year 2020 Financial Results

Daily Active Users increased 22% year-over-year to 265 million

Fourth quarter revenue increased 62% year-over-year to $911 million

Fourth quarter operating cash flow improved 21% year-over-year to $(53) million

Snap Inc. (NYSE: SNAP) today announced financial results for the quarter and full year ended December 31, 2020.

Financial Highlights

"We're grateful for the opportunity to serve our community and partners through this challenging period of time," said Evan Spiegel, CEO. "Our team has worked tirelessly to help people stay close with their friends and family even while they are physically apart, and we're proud of the strong results we delivered for our advertising partners this quarter and over the full year. We delivered our first full year of Adjusted EBITDA profitability and, as we look towards the future, we're excited to build on our investments in augmented reality, mapping, and content to drive our ongoing growth."

Q4 2020 Summary & Key Highlights

We saw increased engagement across key metrics:

We continue to invest in our Discover platform as a destination for content that entertains and informs:

We continue to invest in our camera and augmented reality platforms:

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

We continue to innovate to better serve our large and engaged community:

Financial Guidance

The following forward-looking statements reflect our expectations for the first quarter of 2021 as of February 4, 2021, and are subject to substantial uncertainty. This guidance assumes constant foreign currency rates, and among other things, that no business acquisitions, investments, restructurings, or legal settlements are concluded in the quarter. Our results are based on assumptions that we believe to be reasonable as of this date, but may be materially affected by many factors, as discussed below in "Forward-Looking Statements."

Q1 2021 Outlook

Conference Call Information

Snap Inc. will host a conference call to discuss the results at 2:00 p.m. Pacific / 5:00 p.m. Eastern today. The live audio webcast along with supplemental information will be accessible at investor.snap.com. A recording of the webcast will also be available following the conference call.

Snap Inc. uses the investor.snap.com and snap.com/news websites as means of disclosing material non-public information and for complying with its disclosure obligation under Regulation FD.

Definitions

Free Cash Flow is defined as net cash provided by (used in) operating activities, reduced by purchases of property and equipment.

Common shares outstanding plus shares underlying stock-based awards includes common shares outstanding, restricted stock units, restricted stock awards, and outstanding stock options.

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February 04, 2021 16:10 ET (21:10 GMT)