SNAP Q2 2022 Earnings

Call Details

• Call Title: Snap Q2 2022 Earnings Call
• Date: July 21, 2022 at 9:00 PM UTC
• Management Team:
  • Evan Spiegel (Chief Executive Officer and Co-founder)
  • Jeremi Gorman (Chief Business Officer)
  • Derek Andersen (Chief Financial Officer)
  • David Ometer (Head of Investor Relations)

Call Summary

Financial Performance

• The company reported a material deceleration in ad demand that has intensified over the last 90 days.
• The majority of revenue remains direct response advertising, and that format is described as easy for advertisers to turn off and on quickly.
• Daily active users grew 18% year over year, which management quantified as an increase of 54 million year over year.
• Spotlight engagement metrics were disclosed as time spent up 59% year over year and Spotlight MAU up 46% year over year to more than 270 million.
• The company published an inaugural investor letter and provided GAAP and non-GAAP reconciliations in the press release.
• Expense disclosures in the call excluded stock-based compensation, related payroll taxes, depreciation and amortization, and non-recurring charges.

Guidance

• The company stated that Q3 is 'roughly flattish' thus far and provided no numeric forward revenue guidance on the call.
• No specific quarterly revenue or EPS targets were disclosed on the call beyond the qualitative Q3 comment.
• The company emphasized transparency on current performance rather than issuing new numeric guidance given short-term visibility challenges.
• Management reiterated that forward-looking statements are based on current assumptions and may change with macro or policy conditions.