Daily Active Users increased 14% year-over-year to 397 million
Second quarter revenue was $1,068 million
Trailing twelve months operating cash flow was $250 million
Trailing twelve months Free Cash Flow was $81 million
SANTA MONICA, Calif.–(BUSINESS WIRE)–Snap Inc. (NYSE: SNAP) today announced financial results for the quarter ended June 30, 2023.
“We are excited by the progress we have made delivering increased return on investment for our advertising partners, growing our community to 397 million daily active users, and reaching more than 4 million Snapchat+ subscribers,” said Evan Spiegel, CEO.
Q2 2023 Financial Summary
- Revenue was $1,068 million, compared to $1,111 million in the prior year.
- Net loss was $377 million, compared to $422 million in the prior year.
- Adjusted EBITDA was $(38) million, compared to $7 million in the prior year.
- Operating cash flow was $(82) million, compared to $(124) million in the prior year.
- Free Cash Flow was $(119) million, compared to $(147) million in the prior year.
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Three Months Ended June 30, |
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Percent Change |
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Six Months Ended June 30, |
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Percent Change |
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2023 |
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2022 |
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2023 |
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2022 |
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(in thousands, except per share amounts) |
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(Unaudited) |
(NM = Not Meaningful) |
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Revenue |
$ |
1,067,669 |
|
|
$ |
1,110,909 |
|
|
(4 |
)% |
|
$ |
2,056,277 |
|
|
$ |
2,173,636 |
|
|
(5 |
)% |
|
Operating loss |
$ |
(404,339 |
) |
|
$ |
(400,940 |
) |
|
(1 |
)% |
|
$ |
(769,603 |
) |
|
$ |
(672,467 |
) |
|
(14 |
)% |
|
Net loss |
$ |
(377,308 |
) |
|
$ |
(422,067 |
) |
|
11 |
% |
|
$ |
(705,982 |
) |
|
$ |
(781,691 |
) |
|
10 |
% |
|
Adjusted EBITDA(1) |
$ |
(38,479 |
) |
|
$ |
7,190 |
|
|
(635 |
)% |
|
$ |
(37,666 |
) |
|
$ |
71,658 |
|
|
(153 |
)% |
|
Net cash provided by (used in) operating activities |
$ |
(81,936 |
) |
|
$ |
(124,081 |
) |
|
34 |
% |
|
$ |
69,166 |
|
|
$ |
3,378 |
|
|
NM |
|
|
Free Cash Flow(2) |
$ |
(118,879 |
) |
|
$ |
(147,451 |
) |
|
19 |
% |
|
$ |
(15,407 |
) |
|
$ |
(41,167 |
) |
|
63 |
% |
|
Diluted net loss per share attributable to common stockholders |
$ |
(0.24 |
) |
|
$ |
(0.26 |
) |
|
8 |
% |
|
$ |
(0.44 |
) |
|
$ |
(0.48 |
) |
|
8 |
% |
|
Non-GAAP diluted net income (loss) per share(3) |
$ |
(0.02 |
) |
|
$ |
(0.02 |
) |
|
— |
% |
|
$ |
(0.01 |
) |
|
$ |
(0.04 |
) |
|
75 |
% |
| (1) |
See page 10 for reconciliation of net loss to Adjusted EBITDA. |
| (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 loss per share to non-GAAP diluted net income (loss) per share. |
Q2 2023 Summary & Key Highlights
We grew and deepened our engagement with our community:
- DAUs were 397 million in Q2 2023, an increase of 50 million, or 14% 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 more than tripled year-over-year, and Spotlight reached more than 400 million monthly active users on average in Q2, an increase of 51% year-over-year.
- Since launching My AI, our AI-powered chatbot, over 150 million people have sent over 10 billion messages, which we believe makes My AI among the largest consumer chatbots available today.
- We introduced My AI Snaps for Snapchat+ subscribers, allowing subscribers to send Snaps to My AI and receive an AI-generated Snap back that keeps the conversation going.
- We expanded our Stories revenue share program to more creators, helping more people build businesses on Snapchat and enabling them to create content for our community.
- We onboarded new media partners and renewed agreements globally as we continue to grow our local content offering, including ITV in the UK, ProSieben in Germany, Network 18 in India, and ESPN in the Netherlands.
We are focused on accelerating and diversifying our revenue growth:
- We are seeing significant adoption of our new 7/0 Pixel Purchase optimization model, which contributed to a more than 40% quarter-over-quarter increase in 7/0 Pixel Purchase conversions.
- The combination of improvements to our machine learning (ML) infrastructure and systems for ad ranking and optimization have led to more relevant ads and a more than 30% increase in purchase related conversions quarter-over-quarter.
- We introduced our Event Quality Score system to advertisers to measure the quality and integrity of their data, which we expect will lead to improvement in attribution and advertiser performance.
- We made fundamental improvements to our privacy-preserving identity graph and modeled conversions, which will strengthen the connection between identity, attribution, and optimization.
- Snapchat+, our subscription service that offers exclusive, experimental, and pre-release features, reached over 4 million paying subscribers in Q2, one year after launch.
- We introduced new Snapchat+ features like app icons, custom themes, and Bitmoji pets & cars on the Snap Map.
- We launched ads in Spotlight for all advertisers globally, allowing brands to reach the Snapchat audience on our newest surface.
- We are testing My AI monetization with sponsored links that connect our community with partners relevant to their conversation in that moment, while helping brands reach Snapchatters who have indicated potential interest in their offerings.
- We launched First Story, which enables advertisers to reserve the first video ad between Friend Stories, making First Story the latest offering in our takeover lineup, following First Commercial and First Lens.
- We made it easier for brands and creators to work together with the US launch of the Snap Star Collab Studio for brands to source, partner, and drive results with Snap Stars.
We invested in our augmented reality platform:
- We launched Lens Performance Toolkit in Lens Studio, which offers developers a dashboard view of performance-related metrics for Lenses that are in development.
- We introduced ML Retouch, our newest retouch feature powered by ML in Lens Studio, which enables Creators to easily switch on the feature for realistic skin retouch and accurate texture.
- We announced a partnership with Roboflow that enables Lens Studio developers to utilize Roboflow’s ML tools to easily train and bring models directly into SnapML.
- We launched our first Snap AR Learn Hub, which includes AR courses to teach different AR development concepts in Lens Studio, along with a library of live streams and product tutorials.
- We partnered with OPI, a beauty brand, on a Lens featuring first-of-its-kind Snap AR tech called Nails Segmentation, which makes the digital nail try-on experience more realistic than ever before.
- Snapchat and Disney came together in a groundbreaking
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