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Daily Active Users increased 8% year-over-year to 203 million
Revenue increased 48% year-over-year to $388 million
Adjusted EBITDA improved 53% year-over-year to $(79) million
SANTA MONICA, Calif.–(BUSINESS WIRE)–Snap Inc. (NYSE: SNAP) today announced financial results for the quarter ended June 30, 2019.
Financial Highlights
“The growth in our community, engagement, and revenue is the result of several transitions we completed over the past 18 months,” said Evan Spiegel, CEO. “We look forward to building on our momentum and making significant ongoing progress in each of these areas.”
|
Three Months Ended June 30, |
|
Percent |
|
Six Months Ended June 30, |
|
Percent |
|
||||||||
|
2019 |
|
2018 |
|
Change |
|
2019 |
|
2018 |
|
Change |
|
||||
(Unaudited) |
(in thousands, except per share amounts) |
|||||||||||||||
Cash used in operating activities |
$ |
(95,789 |
) |
$ |
(199,346 |
) |
(52 |
)% |
$ |
(161,967 |
) |
$ |
(431,327 |
) |
(62) |
% |
Free Cash Flow |
$ |
(103,422 |
) |
$ |
(234,247 |
) |
56 |
% |
$ |
(181,414 |
) |
$ |
(502,543 |
) |
64 |
% |
Common shares outstanding plus shares underlying stock-based awards |
|
1,552,734 |
|
|
1,478,758 |
|
5 |
% |
|
1,552,734 |
|
|
1,478,758 |
|
5 |
% |
Operating loss |
$ |
(304,818 |
) |
$ |
(357,842 |
) |
(15 |
)% |
$ |
(620,879 |
) |
$ |
(750,372 |
) |
(17 |
)% |
Revenue |
$ |
388,021 |
|
$ |
262,263 |
|
48 |
% |
$ |
708,447 |
|
$ |
492,929 |
|
44 |
% |
Net loss |
$ |
(255,174 |
) |
$ |
(353,310 |
) |
(28 |
)% |
$ |
(565,581 |
) |
$ |
(739,095 |
) |
(23 |
)% |
Adjusted EBITDA |
$ |
(78,713 |
) |
$ |
(169,032 |
) |
53 |
% |
$ |
(202,162 |
) |
$ |
(386,897 |
) |
48 |
% |
Diluted net loss per share attributable to common shareholders |
$ |
(0.19 |
) |
$ |
(0.27 |
) |
(31 |
)% |
$ |
(0.42 |
) |
$ |
(0.58 |
) |
(28 |
)% |
Non-GAAP diluted net loss per share |
$ |
(0.06 |
) |
$ |
(0.14 |
) |
(56 |
)% |
$ |
(0.16 |
) |
$ |
(0.31 |
) |
(49 |
)% |
Q2 2019 Summary & Key Highlights
We added 13 million Daily Active Users in the second quarter and saw increased engagement across key metrics:
We are seeing early results from the improvements of our Android application:
We continue to invest in our Discover platform, with a particular focus on building a sustainable premium content ecosystem:
We continue to invest in our augmented reality platform:
We launched Snap Games in Q2 2019 to bring the fun of playing games with your friends to Snapchat and foster a scalable ecosystem that benefits users, developers, and Snap:
We continue to build on and improve Snap Kit, our set of developer tools that allow our partners to bring Snapchat features into their services:
We strengthened our platform capabilities to drive improved outcomes for advertisers:
Financial Guidance
The following forward-looking statements reflect our expectations for the third quarter of 2019 as of July 23, 2019, and are subject to substantial uncertainty. This guidance assumes, 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.”
Q3 2019 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.
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.
A Daily Active User (DAU) is defined as a registered Snapchat user who opens the Snapchat application at least once during a defined 24-hour period. We calculate average DAUs for a particular quarter by adding the number of DAUs on each day of that quarter and dividing that sum by the number of days in that quarter.
Average revenue per user (ARPU) is defined as quarterly revenue divided by the average DAUs.
A Monthly Active User (MAU) is defined as a registered Snapchat user who opens the Snapchat application at least once during the 30-day period ending on the calendar month-end. We calculate average Monthly Active Users for a particular quarter by calculating the average of the MAUs as of each calendar month-end in that quarter.
Addressable reach is defined as the approximate number of Snapchat users that an ad could reach over a 28-day period in a given locality. When we calculate the percentage of a demographic group that can be reached, we do so by dividing addressable reach by relevant census figures. Addressable reach and age data are subject to limitations. For more information, see Snap’s SEC filings and businesshelp.snapchat.com.
Note: For adjustments and additional information regarding the non-GAAP financial measures and other items discussed, please see “Non-GAAP Financial Measures,” “Reconciliation of GAAP to Non-GAAP Financial Measures,” and “Supplemental Financial Information and Business Metrics.”
About Snap Inc.
Snap Inc. is a camera company. We believe that reinventing the camera represents our greatest opportunity to improve the way people live and communicate. We contribute to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together. For more information, visit snap.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release, including statements regarding guidance, our future results of operations or financial condition, business strategy and plans, user growth and engagement, product initiatives, and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “going to,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. We caution you that the foregoing may not include all of the forward-looking statements made in this press release.
You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this press release primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, and prospects. These forward-looking statements are subject to risks and uncertainties related to: our financial performance; our lack of profitability to date; our ability to generate and sustain positive cash flow; our ability to attract and retain users, publishers, and advertisers; competition and new market entrants; managing our international expansion and our growth and future expenses; compliance with new laws and regulations; our ability to maintain, protect, and enhance our intellectual property; our ability to attract and retain qualified and key personnel; and future acquisitions or investments, as well as risks, uncertainties, and other factors described in “Risk Factors” and elsewhere in our quarterly report on Form 10-Q for the quarter ended March 31, 2019 filed with the SEC, 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 for the quarter ended June 30, 2019 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. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
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 Free Cash Flow, which is defined as net cash provided by (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 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. 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 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.”
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 CASH FLOWS (in thousands, unaudited) |
|||||||||||||||
|
|
|
|||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|||||||
Net loss |
$ |
(255,174 |
) |
$ |
(353,310 |
) |
$ |
(565,581 |
) |
$ |
(739,095 |
) |
|||
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|||||||
Depreciation and amortization |
|
22,660 |
|
|
22,514 |
|
|
45,979 |
|
|
44,068 |
|
|||
Stock-based compensation |
|
195,574 |
|
|
156,371 |
|
|
358,130 |
|
|
289,630 |
|
|||
Deferred income taxes |
|
291 |
|
|
17 |
|
|
25 |
|
|
253 |
|
|||
Other |
|
(1,399 |
) |
|
(5,893 |
) |
|
(3,316 |
) |
|
(9,287 |
) |
|||
Gain on divestiture |
|
(39,883 |
) |
|
— |
|
|
(39,883 |
) |
|
— |
||||
Change in operating assets and liabilities, net of effect of acquisitions: |
|
|
|
|
|
|
|
|
|||||||
Accounts receivable, net of allowance |
|
(39,751 |
) |
|
(13,926 |
) |
|
32,119 |
|
|
34,771 |
|
|||
Prepaid expenses and other current assets |
|
(4,761 |
) |
|
7,815 |
|
|
(4,490 |
) |
|
(2,624 |
) |
|||
Operating lease right-of-use asset |
|
11,809 |
|
|
— |
|
|
21,621 |
|
|
— |
||||
Other assets |
|
2,769 |
|
|
9,021 |
|
|
2,401 |
|
|
13,225 |
|
|||
Accounts payable |
|
21,009 |
|
|
(9,653 |
) |
|
24,099 |
|
|
(46,722 |
) |
|||
Accrued expenses and other current liabilities |
|
7,735 |
|
|
(19,356 |
) |
|
(6,588 |
) |
|
(29,505 |
) |
|||
Operating lease liabilities |
|
(16,781 |
) |
|
— |
|
|
(27,251 |
) |
|
— |
||||
Other liabilities |
|
113 |
|
|
7,054 |
|
|
768 |
|
|
13,959 |
|
|||
Net cash used in operating activities |
|
(95,789 |
) |
|
(199,346 |
) |
|
(161,967 |
) |
|
(431,327 |
) |
|||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|||||||
Purchases of property and equipment |
|
(7,633 |
) |
|
(34,901 |
) |
|
(19,447 |
) |
|
(71,216 |
) |
|||
Sales of property and equipment |
|
— |
|
|
— |
|
|
29 |
|
|
— |
||||
Proceeds from divestiture, net |
|
73,796 |
|
|
— |
|
|
73,796 |
|
|
— |
||||
Non-marketable investments |
|
(450 |
) |
|
(21,010 |
) |
|
(2,700 |
) |
|
(21,010 |
) |
|||
Purchases of marketable securities |
|
(283,520 |
) |
|
(396,885 |
) |
|
(809,040 |
) |
|
(874,098 |
) |
|||
Sales of marketable securities |
|
77,489 |
|
|
— |
|
|
77,489 |
|
|
45,007 |
|
|||
Maturities of marketable securities |
|
324,033 |
|
|
578,509 |
|
|
782,660 |
|
|
1,366,337 |
|
|||
Other |
|
1,000 |
|
|
(2,505 |
) |
|
1,000 |
|
|
(2,565 |
) |
|||
Net cash provided by investing activities |
|
184,715 |
|
|
123,208 |
|
|
103,787 |
|
|
442,455 |
|
|||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|||||||
Proceeds from the exercise of stock options |
|
1,342 |
|
|
1,914 |
|
|
6,938 |
|
|
47,723 |
|
|||
Stock repurchases from employees for tax withholdings |
|
— |
|
|
— |
|
|
— |
|
|
(551 |
) |
|||
Net cash provided by financing activities |
|
1,342 |
|
|
1,914 |
|
|
6,938 |
|
|
47,172 |
|
|||
Change in cash, cash equivalents, and restricted cash |
|
90,268 |
|
|
(74,224 |
) |
|
(51,242 |
) |
|
58,300 |
|
|||
Cash, cash equivalents, and restricted cash, beginning of period |
|
247,464 |
|
|
469,531 |
|
|
388,974 |
|
|
337,007 |
|
|||
Cash, cash equivalents, and restricted cash, end of period |
$ |
337,732 |
|
$ |
395,307 |
|
$ |
337,732 |
|
$ |
395,307 |
|
|||
Supplemental disclosures |
|
|
|
|
|
|
|
|
|||||||
Cash paid for income taxes, net |
$ |
(399 |
) |
$ |
1,406 |
|
$ |
(79 |
) |
$ |
2,397 |
|
SNAP INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts, unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Revenue |
$ |
388,021 |
|
$ |
262,263 |
|
$ |
708,447 |
|
$ |
492,929 |
|
|||
Costs and expenses: |
|
|
|
|
|
|
|
|
|||||||
Cost of revenue |
|
215,492 |
|
|
191,565 |
|
|
419,259 |
|
|
388,363 |
|
|||
Research and development |
|
236,199 |
|
|
203,246 |
|
|
452,384 |
|
|
404,232 |
|
|||
Sales and marketing |
|
111,504 |
|
|
101,685 |
|
|
209,386 |
|
|
203,798 |
|
|||
General and administrative |
|
129,644 |
|
|
123,609 |
|
|
248,297 |
|
|
246,908 |
|
|||
Total costs and expenses |
|
692,839 |
|
|
620,105 |
|
|
1,329,326 |
|
|
1,243,301 |
|
|||
Operating loss |
|
(304,818 |
) |
|
(357,842 |
) |
|
(620,879 |
) |
|
(750,372 |
) |
|||
Interest income |
|
7,446 |
|
|
6,600 |
|
|
15,262 |
|
|
12,704 |
|
|||
Interest expense |
|
(809 |
) |
|
(930 |
) |
|
(1,565 |
) |
|
(1,864 |
) |
|||
Other income (expense), net |
|
44,085 |
|
|
(61 |
) |
|
42,958 |
|
|
3,092 |
|
|||
Loss before income taxes |
|
(254,096 |
) |
|
(352,233 |
) |
|
(564,224 |
) |
|
(736,440 |
) |
|||
Income tax benefit (expense) |
|
(1,078 |
) |
|
(1,077 |
) |
|
(1,357 |
) |
|
(2,655 |
) |
|||
Net loss |
$ |
(255,174 |
) |
$ |
(353,310 |
) |
$ |
(565,581 |
) |
$ |
(739,095 |
) |
|||
Net loss per share attributable to Class A, Class B, and Class C common stockholders: |
|
|
|
|
|
|
|
|
|||||||
Basic |
$ |
(0.19 |
) |
$ |
(0.27 |
) |
$ |
(0.42 |
) |
$ |
(0.58 |
) |
|||
Diluted |
$ |
(0.19 |
) |
$ |
(0.27 |
) |
$ |
(0.42 |
) |
$ |
(0.58 |
) |
|||
Weighted average shares used in computation of net loss per share: |
|
|
|
|
|
|
$ |
— |
|||||||
Basic |
|
1,362,544 |
|
|
1,294,846 |
|
|
1,350,763 |
|
|
1,283,668 |
|
|||
Diluted |
|
1,362,544 |
|
|
1,294,846 |
|
|
1,350,763 |
|
|
1,283,668 |
|
SNAP INC. CONSOLIDATED BALANCE SHEETS (in thousands, except par value) |
|||||||
|
June 30, 2019 |
|
December 31, |
||||
|
(unaudited) |
|
|
|
|||
Assets |
|
|
|
|
|
||
Current assets |
|
|
|
|
|
||
Cash and cash equivalents |
$ |
335,744 |
|
|
$ |
387,149 |
|
Marketable securities |
|
849,050 |
|
|
|
891,914 |
|
Accounts receivable, net of allowance |
|
313,504 |
|
|
|
354,965 |
|
Prepaid expenses and other current assets |
|
41,457 |
|
|
|
41,900 |
|
Total current assets |
|
1,539,755 |
|
|
|
1,675,928 |
|
Property and equipment, net |
|
185,440 |
|
|
|
212,560 |
|
Operating lease right-of-use assets |
|
271,745 |
|
|
|
— |
|
Intangible assets, net |
|
79,811 |
|
|
|
126,054 |
|
Goodwill |
|
628,474 |
|
|
|
632,370 |
|
Other assets |
|
70,800 |
|
|
|
67,194 |
|
Total assets |
$ |
2,776,025 |
|
|
$ |
2,714,106 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
||
Current liabilities |
|
|
|
|
|
||
Accounts payable |
$ |
51,902 |
|
|
$ |
30,876 |
|
Operating lease liabilities |
|
47,100 |
|
|
|
— |
|
Accrued expenses and other current liabilities |
|
240,935 |
|
|
|
261,815 |
|
Total current liabilities |
|
339,937 |
|
|
|
292,691 |
|
Operating lease liabilities, noncurrent |
|
311,663 |
|
|
|
— |
|
Other liabilities |
|
7,727 |
|
|
|
110,416 |
|
Total liabilities |
|
659,327 |
|
|
|
403,107 |
|
Commitments and contingencies |
|
|
|
|
|
||
Stockholders’ equity |
|
|
|
|
|
||
Class A non-voting common stock, $0.00001 par value. 3,000,000 shares authorized, 999,304 shares issued and outstanding at December 31, 2018, and 3,000,000 shares authorized, 1,096,653 shares issued and outstanding at June 30, 2019. |
|
11 |
|
|
|
10 |
|
Class B voting common stock, $0.00001 par value. 700,000 shares authorized, 93,846 shares issued and outstanding at December 31, 2018, and 700,000 shares authorized, 47,582 shares issued and outstanding at June 30, 2019. |
|
— |
|
|
|
1 |
|
Class C voting common stock, $0.00001 par value. 260,888 shares authorized, 224,611 shares issued and outstanding at December 31, 2018, and 260,888 shares authorized, 227,914 shares issued and outstanding at June 30, 2019. |
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
8,592,434 |
|
|
|
8,220,417 |
|
Accumulated other comprehensive income |
|
2,102 |
|
|
|
3,147 |
|
Accumulated deficit |
|
(6,477,851 |
) |
|
|
(5,912,578 |
) |
Total stockholders’ equity |
|
2,116,698 |
|
|
|
2,310,999 |
|
Total liabilities and stockholders’ equity |
$ |
2,776,025 |
|
|
$ |
2,714,106 |
|
SNAP INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (in thousands, unaudited) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Free Cash Flow reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
||||
Net cash used in operating activities |
$ |
(95,789 |
) |
|
$ |
(199,346 |
) |
|
$ |
(161,967 |
) |
|
$ |
(431,327 |
) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
||||
Purchases of property and equipment |
|
(7,633 |
) |
|
|
(34,901 |
) |
|
|
(19,447 |
) |
|
|
(71,216 |
) |
Free Cash Flow |
$ |
(103,422 |
) |
|
$ |
(234,247 |
) |
|
$ |
(181,414 |
) |
|
$ |
(502,543 |
) |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
||||
Adjusted EBITDA reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(255,174 |
) |
|
$ |
(353,310 |
) |
|
$ |
(565,581 |
) |
|
$ |
(739,095 |
) |
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
(7,446 |
) |
|
|
(6,600 |
) |
|
|
(15,262 |
) |
|
|
(12,704 |
) |
Interest expense |
|
809 |
|
|
|
930 |
|
|
|
1,565 |
|
|
|
1,864 |
|
Other (income) expense, net |
|
(44,085 |
) |
|
|
61 |
|
|
|
(42,958 |
) |
|
|
(3,092 |
) |
Income tax (benefit) expense |
|
1,078 |
|
|
|
1,077 |
|
|
|
1,357 |
|
|
|
2,655 |
|
Depreciation and amortization |
|
22,660 |
|
|
|
22,514 |
|
|
|
45,979 |
|
|
|
44,068 |
|
Stock-based compensation expense |
|
195,574 |
|
|
|
156,371 |
|
|
|
358,130 |
|
|
|
289,630 |
|
Payroll tax expense related to stock-based compensation |
|
7,871 |
|
|
|
5,997 |
|
|
|
14,608 |
|
|
|
15,965 |
|
Reduction in force charges(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,884 |
|
Lease exit charges(2) |
|
— |
|
|
|
3,928 |
|
|
|
— |
|
|
|
3,928 |
|
Adjusted EBITDA |
$ |
(78,713 |
) |
|
$ |
(169,032 |
) |
|
$ |
(202,162 |
) |
|
$ |
(386,897 |
) |
(1) |
Reduction in force charges in the first quarter of 2018 were related to a reduction in force plan impacting approximately 7% of our then global headcount, primarily in engineering and sales. The charges are composed primarily of severance expense and related payroll tax expense. These charges are non-recurring and not reflective of underlying trends in our business. Additionally, we recognized a stock-based compensation forfeiture benefit of $31.5 million, which is included in the stock-based compensation expense line item above. |
|
|
(2) |
Lease exit charges were related to our exit of various operating leases prior to the end of the contractual lease term, primarily as a result of moving to a centralized corporate office located in Santa Monica, California. We recorded a lease exit charge of $3.9 million in the second quarter of 2018. The charge reflects the present value of our remaining lease obligation on the cease use dates that occurred during the quarter, net of sublease income. These charges are non-recurring and not reflective of underlying trends in our business. |
Contacts
Investors and Analysts:
ir@snap.com
Press:
press@snap.com
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