Core Insights - Snap reported revenue of $1.36 billion for the quarter ended March 2025, reflecting a year-over-year increase of 14.1% and surpassing the Zacks Consensus Estimate of $1.35 billion by 1.15% [1] - The company's EPS for the quarter was $0.04, consistent with the consensus estimate, showing no surprise in earnings [1] Financial Performance Metrics - Daily Active Users (DAU) reached 460 million, slightly above the estimated 458.96 million [4] - Average Revenue Per User (ARPU) globally was $2.96, marginally exceeding the nine-analyst average estimate of $2.95 [4] - DAU in North America was 99 million, slightly below the estimate of 100.09 million [4] - DAU in Europe was 99 million, in line with the estimate of 99.09 million [4] - DAU in the Rest of World segment was 262 million, surpassing the estimate of 259.68 million [4] - ARPU in Europe was $2.26, below the estimated $2.29 [4] - ARPU in the Rest of World was $1.17, lower than the $1.23 estimate [4] - ARPU in North America was $8.41, exceeding the estimate of $7.99 [4] - The total number of full-time employees was 5.06 billion, above the estimate of 4.99 billion [4] Geographic Revenue Breakdown - Revenue from Europe was $224.02 million, below the estimate of $231.11 million, but represented a year-over-year increase of 14.4% [4] - Revenue from the Rest of World was $307.51 million, below the estimate of $321.62 million, with a year-over-year increase of 20.2% [4] - Revenue from North America was $831.69 million, exceeding the estimate of $793.09 million, with a year-over-year increase of 11.9% [4]

Financial Performance - Revenue reached $1363 million in Q1 2025, a 14% year-over-year increase[8, 11] - Average revenue per user (ARPU) was $2.96, up from $2.83 in the prior year[8] - GAAP gross margin improved to 53%, compared to 52% in the prior year[8] - Net loss decreased to $140 million, compared to $305 million in the prior year, improving net loss margin from (26)% to (10)%[8] - Adjusted EBITDA was $108 million, compared to $46 million in the prior year[14] User Engagement - Daily active users (DAU) increased by 38 million, or 9%, year-over-year, reaching 460 million in Q1 2025[23] - The company reached more than 900 million monthly active users (MAU)[19] Cash Flow and Liquidity - Operating cash flow increased 72% year-over-year to $152 million[16, 79] - Free cash flow increased 202% year-over-year to $114 million[16, 79] - Cash, cash equivalents, and marketable securities totaled $3.2 billion as of March 31, 2025[16, 88]

Snap (SNAP) came out with quarterly earnings of $0.04 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company behind Snapchat would post earnings of $0.14 per share when it actually produced earnings of $0.16, delivering a surprise of 14.29%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.Snap, which belongs to the ...

Core Viewpoint - Snap Inc reported a slight revenue increase in Q1, but faces significant challenges due to macroeconomic headwinds from tariffs, leading to a refusal to provide revenue guidance for the current quarter [1][2][5] Financial Performance - Snap's Q1 revenue reached approximately $1.36 billion, a 14% year-over-year increase, slightly above Wall Street's expectation of $1.35 billion [2][3] - The company reported a net loss of about $140 million, which is a 54% reduction compared to the previous year's loss [3] - Adjusted EBITDA increased by 137% year-over-year to $108 million [3] User Metrics - Snapchat+ subscription users grew by 59% year-over-year, reaching approximately 15 million [3] - Monthly active users reached 900 million, nearing the significant milestone of 1 billion [3] Advertising and Market Position - The number of advertising clients increased by 60% year-over-year, with direct response ads accounting for 75% of quarterly ad revenue, a record high [3] - Snap's advertising strategy focuses on high engagement from Gen Z and utilizes AR technology, differentiating itself from larger platforms like Meta and Pinterest [4] Economic and Regulatory Environment - The company is impacted by the Trump administration's tariff policies, which have led to a tightening of advertising budgets among some advertisers [1][2][5] - The effective tariff rate in the U.S. is currently close to 23%, the highest in over a century, affecting consumer and business confidence [2]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ FORM 10-Q ______________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (State or other jurisdiction of incorporation or organizations) Delaware 45-5452795 (I.R.S. E ...

Core Insights - Snap has decided to abandon its plans for a simplified version of its app, which was being tested for seven months, and will instead experiment with a refined five-tab interface that retains all existing tabs and enhances access to Spotlight [1][2][3] Group 1: App Design Changes - The initial three-tab design was found to be difficult for power users who frequently utilized the map and stories features, leading to the decision to evolve towards a five-tab design [3] - The new five-tab interface aims to combine the best elements of both the simplified and traditional designs, improving access to Stories and Spotlight [4] Group 2: User Engagement and Metrics - Snap reported a loss of 1 million users in North America, with daily active users (DAUs) dropping to 99 million from 100 million in the previous quarter and year [4] - Despite the user loss in North America, Snap's first-quarter revenue reached $1.36 billion, marking a 14% year-over-year increase, driven by the growth of its Snapchat+ subscription service and advertising solutions [5] - The company achieved over 900 million monthly active users (MAUs) globally, with DAUs increasing to 460 million, an increase of 38 million year-over-year [5]

Company Performance - Snap reported a 14% increase in revenue for Q1, reaching $1.36 billion, while narrowing its net loss to $140 million from $305 million [6] - Daily active users (DAUs) rose 9% to 460 million, and monthly active users hit 900 million in Q1 2025 [1][3] Financial Guidance and Strategy - The company refrained from providing formal financial guidance for Q2 due to uncertainties in macroeconomic conditions and their potential impact on advertising demand [2] - Snap updated its cost structure guidance, estimating current investment plans at 82 to 87 cents per daily active user, with DAUs estimated at 468 million [2] Market Sentiment and Stock Performance - Snap's shares closed up 3% but have since dropped 13% following the Q1 report, reflecting volatility in the tech sector [4] - The overall market sentiment is affected by economic uncertainties, as seen with other tech companies like Spotify, which also experienced stock fluctuations after earnings reports [4]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue was $1,363,000,000, up 14% year over year, and up 15% on a constant currency basis [24] - Adjusted EBITDA was $108,000,000, up from $46,000,000 in Q1 of the prior year, reflecting higher revenue growth and operating expense discipline [27] - Free cash flow was $114,000,000 in Q1, while operating cash flow was $152,000,000 [28][29] Business Line Data and Key Metrics Changes - Advertising revenue was $1,211,000,000, up 9% year over year, with direct response advertising revenue contributing 75% of total advertising revenue for the first time [24] - Other revenue, primarily from Snapchat Plus, increased 75% year over year to $152,000,000, with subscribers reaching nearly 15,000,000, a 59% increase year over year [24] - Global impression volume grew approximately 17% year over year, driven by expanded advertising delivery within Spotlight and Creator Stories [25] Market Data and Key Metrics Changes - North America revenue growth accelerated to 12% year over year in Q1, up from 8% in the prior quarter [24] - Europe revenue grew 14% year over year, while Rest of World revenue grew 20% year over year [24] - Daily Active Users (DAU) in North America was 99,000,000, unchanged from the prior quarter, while Europe also remained stable at 99,000,000 [9] Company Strategy and Development Direction - The company is focused on enhancing core product value, investing in AI and ML models for better content ranking, and strengthening the creator ecosystem [10] - Continued investment in augmented reality (AR) and the advertising platform is seen as critical for long-term monetization opportunities [16][22] - The company aims to balance investment with top-line growth to achieve GAAP profitability over time [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in Q2 but emphasized ongoing growth and strong performance in Q1 [44] - The company is optimistic about long-term prospects due to progress in the ad platform, diversification of revenue sources, and a strong balance sheet [32] - Management is cautious about macroeconomic conditions affecting advertising demand and has opted not to provide formal financial guidance for Q2 [31] Other Important Information - The company repurchased 27,000,000 shares at a cost of $257,000,000 in Q1 [30] - The total cash repurchase price for convertible notes was $198,100,000 below par value, contributing to a decline in total debt outstanding [30] - The company ended Q1 with $3,200,000,000 in cash and marketable securities on hand [30] Q&A Session Summary Question: Improvement in North American revenue growth - Management noted strong growth in the small and medium customer segment and healthy contributions from Snapchat Plus [37] Question: Impact of macro conditions on advertising demand - Management acknowledged headwinds but emphasized ongoing growth and diversification efforts [44] Question: Future growth in direct response advertising - Management highlighted ongoing improvements in the ad platform and product roadmap as key to achieving higher growth rates [50] Question: Engagement trends in Spotlight - Management reported significant growth in Spotlight engagement, with view time increasing about 25% year over year [59] Question: Progression of advertising performance into April - Management indicated early growth but noted some headwinds, particularly related to changes in advertising regulations [69] Question: Headcount and cost management - Management confirmed a focus on balancing hiring with cost structure adjustments to support core priorities [86]

Financial Performance - Snap reported first-quarter revenue of $1.36 billion, up 14% year-over-year, exceeding the Street consensus estimate of $1.35 billion [1] - The company reported an adjusted loss of 8 cents per share, better than the consensus estimate of a loss of 13 cents per share [1] User Growth - Snap had 460 million daily active users at the end of the first quarter, representing a 9% year-over-year increase [2] - The company surpassed 900 million monthly active users, moving towards its goal of one billion [2] Operational Highlights - Adjusted EBITDA for the quarter was $108 million, reflecting a 137% year-over-year improvement [2] - Active advertisers increased by 60% year-over-year, indicating progress in advertising solutions and Snapchat+ subscriptions [3] Future Outlook - Snap is not providing formal guidance for the second quarter due to macroeconomic uncertainties affecting advertising demand [4] - The company anticipates daily active users to reach 468 million in the second quarter, despite headwinds at the start of the quarter [5] - Snap remains optimistic about its long-term business prospects, focusing on community growth, revenue diversification, and augmented reality [5][6] Stock Performance - Snap's stock fell 12% to $8.00 in after-hours trading, with a 52-week trading range of $7.08 to $17.33 [6] - The stock was up 2.9% to $9.09 during intraday trading [6]

Snap CEO Evan Spiegel speaks during the Semafor World Economy Summit 2025 at Conrad Washington on April 23, 2025 in Washington, DC.Snap reported better-than-expected first-quarter revenue Tuesday but declined to provide guidance, citing macroeconomic uncertainties that could weigh on advertising demand.Shares fell more than 11% in after-hours trading.Here is how the company did compared with Wall Street's expectations:Earnings per share: Loss of 8 cents. That figure is not comparable to analysts' estimates. ...