Snap Inc. Reports Third Quarter 2017 Results
Snap Inc. (NYSE: SNAP) today announced financial results for the quarter ended September 30, 2017.
Third Quarter 2017 Financial Highlights:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
Nine Months Ended |
|
|
|
|
September 30, |
|
Percent |
|
September 30, |
|
Percent |
|
|
2017 |
|
2016 |
|
Change |
|
2017 |
|
2016 |
|
Change |
|
|
(dollars in thousands) |
|
(dollars in thousands) |
| (Unaudited) |
|
(NM = Not Meaningful) |
|
(NM = Not Meaningful) |
|
|
|
|
|
| Revenue |
|
$ |
207,937 |
|
|
$ |
128,204 |
|
|
62 |
% |
|
$ |
539,256 |
|
|
$ |
238,800 |
|
|
126 |
% |
| Net loss(1) |
|
$ |
(443,159 |
) |
|
$ |
(124,228 |
) |
|
NM |
|
|
$ |
(3,095,089 |
) |
|
$ |
(344,698 |
) |
|
NM |
|
| Adjusted EBITDA(2) |
|
$ |
(178,901 |
) |
|
$ |
(108,604 |
) |
|
65 |
% |
|
$ |
(561,134 |
) |
|
$ |
(306,959 |
) |
|
83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash, cash equivalents, and marketable securities |
|
$ |
2,298,068 |
|
|
|
|
|
|
|
|
|
|
|
| Cash used in operating activities |
|
$ |
(194,013 |
) |
|
$ |
(216,866 |
) |
|
|
|
$ |
(558,584 |
) |
|
$ |
(443,517 |
) |
|
|
| Free Cash Flow(3) |
|
$ |
(219,961 |
) |
|
$ |
(234,058 |
) |
|
|
|
$ |
(621,890 |
) |
|
$ |
(489,582 |
) |
|
|
| Capital expenditures |
|
$ |
(25,948 |
) |
|
$ |
(17,192 |
) |
|
|
|
$ |
(63,306 |
) |
|
$ |
(46,065 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
|
Net loss for the nine months ended September 30, 2017 includes $2.5 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. |
| (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. |
| (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) – DAUs grew from 153 million in Q3 2016 to 178 million in Q3
2017, an increase of 25.2 million or 17% year-over-year. DAUs increased 4.5 million or 3% quarter-over-quarter, from 173 million
in Q2 2017.
- Average revenue per user (ARPU)(2) – ARPU was $1.17 in Q3 2017, an increase of 39% over Q3
2016 when ARPU was $0.84. ARPU increased 12% over Q2 2017 when ARPU was $1.05.
- Hosting costs per DAU – Hosting costs per DAU were $0.68 in Q3 2017, as compared to $0.64 in Q3 2016
and $0.61 in Q2 2017.
- Capital expenditures – Capital expenditures were $25.9 million in Q3 2017, as compared to $17.2
million in Q3 2016 and $19.4 million in Q2 2017.
- Excess inventory and related charges – In Q3 2017, we recorded $39.9 million of charges related to
Spectacles inventory, primarily related to excess inventory reserves and inventory purchase commitment cancellation charges.
| (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. |
| (2) |
|
We define ARPU as quarterly revenue divided by the average Daily Active Users. |
|
|
|
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.
Forward-Looking Statements
This press release contains “forward-looking” statements that are based on our management’s beliefs and assumptions and on
information currently available to management. Forward-looking statements include statements about expected financial metrics, such
as revenue, non-GAAP Adjusted EBITDA, capital expenditures, and stock-based compensation, as well as non-financial metrics, such as
DAU and video views. They also include statements about our possible or assumed business strategies, potential growth
opportunities, new products, and potential market opportunities.
Forward-looking statements include all statements that are not historical facts and can be identified by terms such as
“believes,” “continue,” “could,” “potential,” “remain,” “will,” “would” or similar expressions and the negatives of those terms.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results,
performance or achievements to be materially different from any future results, performance or achievements expressed or implied by
the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: our limited
operating history, our lack of significant revenue to date, our ability to monetize our products, the highly competitive and
rapidly changing market for internet and advertising companies, infrastructure costs, our ability to create new and innovative
products, our ability to manage any future user growth, and our international expansion strategies. Additional risks and
uncertainties that could affect our financial results are included in the section titled “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” in the final prospectus for our initial public offering,
dated March 1, 2017, which is available on the SEC’s website at www.sec.gov. Additional information will be made available in Snap Inc.’s quarterly report on Form 10-Q and
other filings that we make from time to time with the SEC. In addition, any forward-looking statements contained in this press
release are based on assumptions that we believe to be reasonable as of this date. Except as required by law, we assume no
obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those
anticipated in the forward-looking statements.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain
non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP
financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance
investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the
financial information prepared and presented in accordance with GAAP.
We use the non-GAAP financial measure of Adjusted EBITDA, which 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. We believe that Adjusted EBITDA helps identify underlying trends in our business that could
otherwise be masked by the effect of the expenses that we exclude in Adjusted EBITDA.
We use the non-GAAP financial measure of Free Cash Flow, which is defined as net cash used in operating activities, reduced by
purchases of property and equipment. We believe Free Cash Flow is an important liquidity measure of the cash that is available,
after capital expenditures, for operational expenses and investment in our business and is a key financial indicator used by
management. Additionally, we believe that Free Cash Flow is an important measure since we use third-party infrastructure partners
to host our services and therefore we do not incur significant capital expenditures to support revenue generating activities. Free
Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. Once our business
needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.
We use the non-GAAP financial measure of Non-GAAP Net Loss, which is defined as net income (loss); excluding amortization of
intangible assets; stock-based compensation expense and related payroll tax expense; certain other non-cash or non-recurring items
impacting net income (loss) from time to time; and related income tax adjustments. Non-GAAP Net Loss and weighted average diluted
shares are then used to calculate Non-GAAP diluted net loss per share. Similar to Adjusted EBITDA, we believe these measures help
identify underlying trends in our business that could otherwise be masked by the effect of the expenses we exclude in the
measure.
We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the
overall understanding of our past performance and future prospects, and allow for greater transparency with respect to key metrics
used by our management for financial and operational decision-making. We are presenting these non-GAAP measures to assist investors
in seeing our financial performance through the eyes of management, and because we believe that these measures provide an
additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our
industry.
For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see
“Reconciliation of GAAP to Non-GAAP Financial Measures” below.
Snap Inc., “Snapchat,” and our other registered and common law trade names, trademarks, and service marks are the property of
Snap Inc. or our subsidiaries.
| |
| SNAP INC. |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(In thousands, except per share amounts, unaudited)
|
| |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| Revenue |
|
$ |
207,937 |
|
|
$ |
128,204 |
|
|
$ |
539,256 |
|
|
$ |
238,800 |
|
| Costs and expenses: |
|
|
|
|
|
|
|
|
| Cost of revenue |
|
|
210,710 |
|
|
|
127,780 |
|
|
|
526,216 |
|
|
|
298,310 |
|
| Research and development |
|
|
239,442 |
|
|
|
54,562 |
|
|
|
1,301,025 |
|
|
|
118,712 |
|
| Sales and marketing |
|
|
101,511 |
|
|
|
34,658 |
|
|
|
412,147 |
|
|
|
73,982 |
|
| General and administrative |
|
|
118,101 |
|
|
|
42,172 |
|
|
|
1,424,480 |
|
|
|
98,444 |
|
| Total costs and expenses |
|
|
669,764 |
|
|
|
259,172 |
|
|
|
3,663,868 |
|
|
|
589,448 |
|
| Loss from operations |
|
|
(461,827 |
) |
|
|
(130,968 |
) |
|
|
(3,124,612 |
) |
|
|
(350,648 |
) |
| Interest income |
|
|
6,253 |
|
|
|
1,938 |
|
|
|
15,026 |
|
|
|
3,168 |
|
| Interest expense |
|
|
(887 |
) |
|
|
(648 |
) |
|
|
(2,580 |
) |
|
|
(648 |
) |
| Other income (expense), net |
|
|
1,002 |
|
|
|
(1,421 |
) |
|
|
1,975 |
|
|
|
(3,353 |
) |
| Loss before income taxes |
|
|
(455,459 |
) |
|
|
(131,099 |
) |
|
|
(3,110,191 |
) |
|
|
(351,481 |
) |
| Income tax benefit (expense) |
|
|
12,300 |
|
|
|
6,871 |
|
|
|
15,102 |
|
|
|
6,783 |
|
| Net loss |
|
$ |
(443,159 |
) |
|
$ |
(124,228 |
) |
|
$ |
(3,095,089 |
) |
|
$ |
(344,698 |
) |
| Net loss per share attributable to Class A, Class B, and Class C common
stockholders: |
|
|
|
|
|
|
|
|
| Basic |
|
$ |
(0.36 |
) |
|
$ |
(0.15 |
) |
|
$ |
(2.71 |
) |
|
$ |
(0.43 |
) |
| Diluted |
|
$ |
(0.36 |
) |
|
$ |
(0.15 |
) |
|
$ |
(2.71 |
) |
|
$ |
(0.43 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| SNAP INC. |
| CONSOLIDATED BALANCE SHEETS |
|
(In thousands, except per share amounts)
|
| |
|
|
September 30, |
|
December 31, |
|
|
2017 |
|
2016 |
|
|
(Unaudited) |
|
|
| Assets |
|
|
|
|
| Current assets |
|
|
|
|
| Cash and cash equivalents |
|
$ |
317,554 |
|
|
$ |
150,121 |
|
| Marketable securities |
|
|
1,980,514 |
|
|
|
837,247 |
|
| Accounts receivable, net of allowance |
|
|
194,971 |
|
|
|
162,659 |
|
| Prepaid expenses and other current assets |
|
|
54,692 |
|
|
|
29,958 |
|
| Total current assets |
|
|
2,547,731 |
|
|
|
1,179,985 |
|
| Property and equipment, net |
|
|
143,112 |
|
|
|
100,585 |
|
| Intangible assets, net |
|
|
164,612 |
|
|
|
75,982 |
|
| Goodwill |
|
|
612,823 |
|
|
|
319,137 |
|
| Other assets |
|
|
74,102 |
|
|
|
47,103 |
|
| Total assets |
|
$ |
3,542,380 |
|
|
$ |
1,722,792 |
|
| Liabilities and Stockholders’ Equity |
|
|
|
|
| Current liabilities |
|
|
|
|
| Accounts payable |
|
$ |
15,207 |
|
|
$ |
8,419 |
|
| Accrued expenses and other current liabilities |
|
|
280,957 |
|
|
|
148,325 |
|
| Total current liabilities |
|
|
296,164 |
|
|
|
156,744 |
|
| Other liabilities |
|
|
70,946 |
|
|
|
47,134 |
|
| Total liabilities |
|
|
367,110 |
|
|
|
203,878 |
|
| Commitments and contingencies |
|
|
|
|
| Stockholders’ equity |
|
|
|
|
| Convertible voting preferred stock, Series A, A-1, and B, $0.00001 par value. No
shares and 146,962 shares authorized, issued, and outstanding at September 30, 2017 and December 31, 2016, respectively.
Liquidation preference of $95,175 at December 31, 2016. |
|
|
— |
|
|
|
1 |
|
| Convertible non-voting preferred stock, Series C, $0.00001 par value. No shares and
16,000 shares authorized, issued, and outstanding at September 30, 2017 and December 31, 2016, respectively. Liquidation
preference of $54,543 at December 31, 2016. |
|
|
— |
|
|
|
— |
|
| Convertible non-voting preferred stock, Series D, E, and F, $0.00001 par value. No
shares and 83,851 shares authorized, issued, and outstanding at September 30, 2017 and December 31, 2016, respectively. |
|
|
— |
|
|
|
2 |
|
| Series FP convertible voting preferred stock, $0.00001 par value. No shares and
260,888 shares authorized at September 30, 2017 and December 31, 2016, respectively. No shares and 215,888 shares issued and
outstanding at September 30, 2017 and December 31, 2016, respectively. |
|
|
— |
|
|
|
2 |
|
| Class A non-voting common stock, $0.00001 par value. 3,000,000 shares authorized,
858,546 shares issued and outstanding at September 30, 2017, and 1,500,000 shares authorized, 504,902 shares issued and
outstanding at December 31, 2016. |
|
|
9 |
|
|
|
5 |
|
| Class B voting common stock, $0.00001 par value. 700,000 shares authorized, 127,302
shares issued and outstanding at September 30, 2017, and 1,500,000 shares authorized, 31,469 shares issued and outstanding at
December 31, 2016. |
|
|
1 |
|
|
|
— |
|
| Class C voting common stock, $0.00001 par value. 260,888 shares authorized, 215,888
shares issued and outstanding at September 30, 2017, and 260,888 shares authorized and no shares issued and outstanding at
December 31, 2016. |
|
|
2 |
|
|
|
— |
|
| Additional paid-in capital |
|
|
7,470,272 |
|
|
|
2,728,823 |
|
| Accumulated other comprehensive income (loss) |
|
|
11,682 |
|
|
|
(2,057 |
) |
| Accumulated deficit |
|
|
(4,306,696
|
)
|
|
|
(1,207,862 |
) |
| Total stockholders’ equity |
|
|
3,175,270 |
|
|
|
1,518,914 |
|
| Total liabilities and stockholders’ equity |
|
$ |
3,542,380 |
|
|
$ |
1,722,792 |
|
|
|
|
|
|
| |
| SNAP INC. |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(In thousands, unaudited)
|
| |
|
|
Nine Months Ended |
|
|
September 30, |
|
|
2017 |
|
2016 |
| Cash flows from operating activities |
|
|
|
|
| Net loss |
|
$ |
(3,095,089 |
) |
|
$ |
(344,698 |
) |
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
| Depreciation and amortization |
|
|
42,502 |
|
|
|
18,482 |
|
| Stock-based compensation |
|
|
2,458,851 |
|
|
|
25,075 |
|
| Deferred income taxes |
|
|
(14,397 |
) |
|
|
(7,231 |
) |
| Excess inventory reserve and related asset impairment |
|
|
21,997 |
|
|
|
— |
|
| Other |
|
|
(3,714 |
) |
|
|
(360 |
) |
| Change in operating assets and liabilities, net of effect of acquisitions: |
|
|
|
|
| Accounts receivable, net of allowance |
|
|
(24,513 |
) |
|
|
(78,488 |
) |
| Prepaid expenses and other current assets |
|
|
(48,965 |
) |
|
|
(14,926 |
) |
| Other assets |
|
|
(8,545 |
) |
|
|
450 |
|
| Accounts payable |
|
|
4,103 |
|
|
|
1,656 |
|
| Accrued expenses and other current liabilities |
|
|
103,449 |
|
|
|
(45,475 |
) |
| Other liabilities |
|
|
5,737 |
|
|
|
1,998 |
|
| Net cash used in operating activities |
|
|
(558,584 |
) |
|
|
(443,517 |
) |
| Cash flows from investing activities |
|
|
|
|
| Purchases of property and equipment |
|
|
(63,306 |
) |
|
|
(46,065 |
) |
| Purchases of intangible assets |
|
|
(8,025 |
) |
|
|
(572 |
) |
| Non-marketable investments |
|
|
(7,530 |
) |
|
|
(5,703 |
) |
| Cash paid for acquisitions, net of cash acquired |
|
|
(352,407 |
) |
|
|
(68,096 |
) |
| Issuance of notes receivable from officers/stockholders |
|
|
— |
|
|
|
(15,000 |
) |
| Repayment of notes receivables from officers/stockholders |
|
|
— |
|
|
|
15,000 |
|
| Purchases of marketable securities |
|
|
(3,412,776 |
) |
|
|
(1,358,295 |
) |
| Sales of marketable securities |
|
|
441,089 |
|
|
|
164,003 |
|
| Maturities of marketable securities |
|
|
1,831,327 |
|
|
|
180,805 |
|
| Change in restricted cash |
|
|
9,899 |
|
|
|
(7,048 |
) |
| Net cash used in investing activities |
|
|
(1,561,729 |
) |
|
|
(1,140,971 |
) |
| Cash flows from financing activities |
|
|
|
|
| Proceeds from the exercise of stock options |
|
|
6,855 |
|
|
|
576 |
|
| Stock repurchases from employees for tax withholdings |
|
|
(367,234 |
) |
|
|
— |
|
| Proceeds from issuance of Class A common stock in initial public offering, net of
underwriting commissions |
|
|
2,657,797 |
|
|
|
— |
|
| Repurchase of Class B voting common stock and Series FP voting preferred stock |
|
|
— |
|
|
|
(10,593 |
) |
| Proceeds from issuances of preferred stock, net of issuance costs |
|
|
— |
|
|
|
1,157,147 |
|
| Borrowings from revolving credit facility |
|
|
— |
|
|
|
5,000 |
|
| Principal payments on revolving credit facility |
|
|
— |
|
|
|
(5,000 |
) |
| Payments of initial public offering issuance costs |
|
|
(9,672 |
) |
|
|
— |
|
| Net cash provided by financing activities |
|
|
2,287,746 |
|
|
|
1,147,130 |
|
| Change in cash and cash equivalents |
|
|
167,433 |
|
|
|
(437,358 |
) |
| Cash and cash equivalents, beginning of period |
|
|
150,121 |
|
|
|
640,810 |
|
| Cash and cash equivalents, end of period |
|
$ |
317,554 |
|
|
$ |
203,452 |
|
| Supplemental disclosures |
|
|
|
|
| Cash paid for income taxes |
|
$ |
5,437 |
|
|
$ |
4 |
|
| Supplemental disclosures of non-cash activities |
|
|
|
|
| Issuance of Class B common stock related to acquisitions |
|
$ |
— |
|
|
$ |
96,145 |
|
| Assumed equity awards in acquisitions |
|
$ |
3,911 |
|
|
$ |
— |
|
| Purchase consideration liabilities related to acquisitions |
|
$ |
11,772 |
|
|
$ |
17,042 |
|
| Repurchase of Class B voting common stock and Series FP voting preferred stock in
exchange for notes receivable from officers/stockholders |
|
$ |
— |
|
|
$ |
13,500 |
|
| Construction in progress related to financing lease obligations |
|
$ |
1,107 |
|
|
$ |
1,024 |
|
| Net change in accounts payable and accrued expenses and other current liabilities
related to property and equipment additions |
|
$ |
(4,155 |
) |
|
$ |
2,395 |
|
|
|
|
|
|
| |
| SNAP INC. |
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
|
(In thousands, unaudited)
|
| |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| Adjusted EBITDA reconciliation: |
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(443,159 |
) |
|
$ |
(124,228 |
) |
|
$ |
(3,095,089 |
) |
|
$ |
(344,698 |
) |
| Add (deduct): |
|
|
|
|
|
|
|
|
| Interest income |
|
|
(6,253 |
) |
|
|
(1,938 |
) |
|
|
(15,026 |
) |
|
|
(3,168 |
) |
| Interest expense |
|
|
887 |
|
|
|
648 |
|
|
|
2,580 |
|
|
|
648 |
|
| Other (income) expense, net |
|
|
(1,002 |
) |
|
|
1,421 |
|
|
|
(1,975 |
) |
|
|
3,353 |
|
| Income tax (benefit) expense |
|
|
(12,300 |
) |
|
|
(6,871 |
) |
|
|
(15,102 |
) |
|
|
(6,783 |
) |
| Depreciation and amortization(1) |
|
|
17,467 |
|
|
|
7,437 |
|
|
|
42,502 |
|
|
|
18,482 |
|
| Stock-based compensation expense(2) |
|
|
221,702 |
|
|
|
14,795 |
|
|
|
2,458,851 |
|
|
|
25,075 |
|
| Payroll tax expense related to stock-based compensation |
|
|
3,890 |
|
|
|
132 |
|
|
|
22,258 |
|
|
|
132 |
|
| Spectacles inventory-related charges(3) |
|
|
39,867 |
|
|
|
— |
|
|
|
39,867 |
|
|
|
— |
|
| Adjusted EBITDA |
|
$ |
(178,901 |
) |
|
$ |
(108,604 |
) |
|
$ |
(561,134 |
) |
|
$ |
(306,959 |
) |
|
|
|
|
|
|
|
|
|
(1) Total depreciation and amortization expense by function:
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| Depreciation and amortization expense: |
|
|
|
|
|
|
|
|
| Cost of revenue |
|
$ |
5,404 |
|
$ |
778 |
|
$ |
10,043 |
|
$ |
947 |
| Research and development |
|
|
6,401 |
|
|
4,623 |
|
|
18,139 |
|
|
12,398 |
| Sales and marketing |
|
|
2,820 |
|
|
394 |
|
|
7,009 |
|
|
780 |
| General and administrative |
|
|
2,842 |
|
|
1,642 |
|
|
7,311 |
|
|
4,357 |
| Total |
|
$ |
17,467 |
|
$ |
7,437 |
|
$ |
42,502 |
|
$ |
18,482 |
|
|
|
|
|
|
|
|
|
(2) Total stock-based compensation and related payroll tax expense by function:
| |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| Stock-based compensation and related payroll tax expense: |
|
|
|
|
|
|
|
|
| Cost of revenue |
|
$ |
2,039 |
|
$ |
128 |
|
$ |
24,288 |
|
$ |
410 |
| Research and development |
|
|
146,531 |
|
|
12,143 |
|
|
1,032,508 |
|
|
17,491 |
| Sales and marketing |
|
|
27,968 |
|
|
1,262 |
|
|
209,468 |
|
|
2,590 |
| General and administrative |
|
|
49,054 |
|
|
1,394 |
|
|
1,214,845 |
|
|
4,716 |
| Total |
|
$ |
225,592 |
|
$ |
14,927 |
|
$ |
2,481,109 |
|
$ |
25,207 |
|
|
|
|
|
|
|
|
|
(3) Spectacles inventory-related charges were primarily related to excess inventory reserves and inventory purchase commitment
cancellation charges. These charges are non-recurring and not reflective of underlying trends in our business.
| |
| SNAP INC. |
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(continued) |
|
(In thousands, except per share amounts, unaudited)
|
| |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| Free Cash Flow reconciliation: |
|
|
|
|
|
|
|
|
| Net cash used in operating activities |
|
$ |
(194,013 |
) |
|
$ |
(216,866 |
) |
|
$ |
(558,584 |
) |
|
$ |
(443,517 |
) |
| Less: |
|
|
|
|
|
|
|
|
| Purchases of property and equipment |
|
|
(25,948 |
) |
|
|
(17,192 |
) |
|
|
(63,306 |
) |
|
|
(46,065 |
) |
| Free Cash Flow |
|
$ |
(219,961 |
) |
|
$ |
(234,058 |
) |
|
$ |
(621,890 |
) |
|
$ |
(489,582 |
) |
|
|
|
|
|
|
|
|
|
| |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| Non-GAAP Net Loss reconciliation: |
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(443,159 |
) |
|
$ |
(124,228 |
) |
|
$ |
(3,095,089 |
) |
|
$ |
(344,698 |
) |
| Amortization of intangible assets |
|
|
9,743 |
|
|
|
4,467 |
|
|
|
20,947 |
|
|
|
11,379 |
|
| Stock-based compensation expense |
|
|
221,702 |
|
|
|
14,795 |
|
|
|
2,458,851 |
|
|
|
25,075 |
|
| Payroll tax expense related to stock-based compensation |
|
|
3,890 |
|
|
|
132 |
|
|
|
22,258 |
|
|
|
132 |
|
| Spectacles inventory-related charges |
|
|
39,867 |
|
|
|
— |
|
|
|
39,867 |
|
|
|
— |
|
| Income tax adjustments |
|
|
(123 |
) |
|
|
— |
|
|
|
(2,313 |
) |
|
|
— |
|
| Non-GAAP net loss |
|
$ |
(168,080 |
) |
|
|
(104,834 |
) |
|
|
(555,479 |
) |
|
|
(308,112 |
) |
|
|
|
|
|
|
|
|
|
| Weighted-average common shares - Diluted |
|
|
1,232,993 |
|
|
|
832,401 |
|
|
|
1,140,004 |
|
|
|
798,660 |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Diluted Net Loss Per Share reconciliation: |
|
|
|
|
|
|
|
|
| Diluted net loss per share |
|
$ |
(0.36 |
) |
|
$ |
(0.15 |
) |
|
$ |
(2.71 |
) |
|
$ |
(0.43 |
) |
| Non-GAAP adjustment to net loss |
|
|
0.22 |
|
|
|
0.02 |
|
|
|
2.22 |
|
|
|
0.04 |
|
| Non-GAAP diluted net loss per share |
|
$ |
(0.14 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.49 |
) |
|
$ |
(0.39 |
) |
|
|
|
|
|
|
|
|
|
Snap Inc.
Investors and Analysts:
ir@snap.com
or
Press:
press@snap.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20171107006708/en/