SNAP Q3 2021 Earnings

Call Details

• Call Title: Snap Q3 2021 Earnings Call
• Date: October 21, 2021 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)
  • Betsy Frank (Senior Director of Investor Relations)

Call Summary

Financial Performance

• Daily active users grew to 306 million in Q3, an increase of 57 million or 23% year-over-year.
• Total revenue for Q3 was $1,067,000,000, representing 57% year-over-year growth.
• Adjusted EBITDA was $174 million in Q3, an improvement of $118 million year-over-year.
• Free cash flow was positive $52 million in Q3, which marks the second consecutive quarter of positive free cash flow.
• Gross margins were 60% in Q3, up approximately 2 percentage points year-over-year and 4 percentage points sequentially.
• Net loss was negative $72 million in Q3, an improvement of $128 million year-over-year driven by higher adjusted EBITDA and $122 million higher gains on investments.

Guidance

• Q4 DAU is estimated at $316 million to $318 million, implying year-over-year growth of 19% to 20%.
• Q4 revenue is estimated between $1,165 million and $1,205 million, implying year-over-year growth of 28% to 32%.
• Q4 adjusted EBITDA is guided to a range of $135 million to $175 million based on expected revenue and investment levels.
• The company expects iOS-related measurement headwinds and macro supply chain and labor disruptions to persist throughout Q4.
• The company noted that iOS 15 and continued measurement changes will likely continue to reduce availability of certain signals used for optimization.
• Q3 revenue missed the low end of guidance by $3 million, which the company attributed primarily to iOS measurement changes and macro factors affecting advertisers.