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. ...

[Q1 2025 Financial Highlights](index=1&type=section&id=Q1%202025%20Financial%20Summary) Snap Inc. reported strong Q1 2025 results, achieving **$1.36 billion** revenue, significantly reduced net loss, and substantial Adjusted EBITDA growth Q1 2025 Financial Performance vs. Q1 2024 (in millions) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $1,363.2 million | $1,194.8 million | 14% | | Net Loss | $(139.6) million | $(305.1) million | 54% improvement | | Adjusted EBITDA | $108.4 million | $45.7 million | 137% | | Net cash from operating activities | $151.6 million | $88.4 million | 72% | | Free Cash Flow | $114.4 million | $37.9 million | 202% | | Diluted net loss per share | $(0.08) | $(0.19) | 58% improvement | - The company's community grew to over **900 million** monthly active users (MAU), marking a significant milestone[3](index=3&type=chunk) - Daily Active Users (DAU) increased by **9%** year-over-year, reaching **460 million**[2](index=2&type=chunk) [Q1 2025 Operational Highlights](index=2&type=section&id=Q1%202025%20Summary%20%26%20Key%20Highlights) Operational highlights include enhanced direct-response advertising, increased Spotlight engagement, significant growth in other revenue, and advancements in AR and Spectacles platforms [Community Engagement](index=2&type=section&id=We%20deepened%20engagement%20with%20our%20community) User engagement deepened with MAU exceeding **900 million** and DAU reaching **460 million**, alongside significant growth in Spotlight posts and My AI usage - Reached over **900 million** monthly active users (MAU) and **460 million** daily active users (DAU), a **9%** YoY increase for DAUs[11](index=11&type=chunk) - The total number of Snap Star Spotlight posts grew by over **125%** year-over-year[11](index=11&type=chunk) - My AI Daily Active Users in the U.S. grew more than **55%** year-over-year due to multimodal improvements[11](index=11&type=chunk) [Revenue Growth and Diversification](index=2&type=section&id=We%20are%20focused%20on%20accelerating%20and%20diversifying%20our%20revenue%20growth) Revenue growth is accelerating through a **60%** YoY increase in active advertisers, improved bidding strategies, and a **75%** YoY surge in other revenue sources - Total active advertisers grew by **60%** year-over-year in Q1[11](index=11&type=chunk) - Other Revenue, the majority of which is from Snapchat+ subscriptions, increased by **75%** year-over-year in Q1[11](index=11&type=chunk) - The company expanded its Agency Partner Program to agencies of all sizes and launched new brand suitability solutions for advertisers[11](index=11&type=chunk) [Augmented Reality (AR) Platform Investment](index=2&type=section&id=We%20invested%20in%20our%20augmented%20reality%20platform) Investments in the AR platform led to advanced AI video Lenses, simplified Lens creation with 'Easy Lens' generating **2 billion** impressions, and doubled Lens Studio downloads - The 'Easy Lens' AI-powered tool, in early testing since mid-December, has been used to create over **10,000** Lenses, generating over **2 billion** impressions[11](index=11&type=chunk) - In Q1, Lens Studio downloads more than **doubled** year-over-year, and its monthly active users reached an all-time high[11](index=11&type=chunk) - New platform capabilities were introduced, including integration with GPS, compass heading, and custom locations to improve location-based AR experiences[11](index=11&type=chunk) [Next-Generation AR for Spectacles](index=2&type=section&id=We%20are%20building%20the%20next-generation%20AR%20operating%20system%20for%20Spectacles) Advancements in Spectacles AR include multiplayer experiences via Connected Lens technology, new developer incentives, and platform enhancements like in-game leaderboards - Niantic's Peridot game was updated to enable a multiplayer AR experience using Snap's Connected Lens technology, connecting Spectacles with the mobile game[11](index=11&type=chunk) - Introduced Spectacles Community Challenges, a new way for developers to win cash prizes for creating high-quality Lenses[11](index=11&type=chunk) - Platform enhancements for Spectacles Lenses include the ability to integrate in-game leaderboards and new hand tracking capabilities[11](index=11&type=chunk) [Q2 2025 Outlook](index=3&type=section&id=Q2%202025%20Outlook) The Q2 2025 outlook will be discussed during the Q1 2025 earnings call and detailed in the investor letter, with no specific quantitative guidance provided - The company will discuss its Q2 2025 outlook during its Q1 2025 Earnings Call and in its investor letter[12](index=12&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) Consolidated financial statements detail Snap's financial position, showing a **14%** revenue increase, reduced operating loss, and improved operating cash flow [Consolidated Statements of Operations](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q1 2025 revenue grew to **$1.36 billion**, with total costs increasing slightly, resulting in a significantly reduced operating loss and improved net loss Q1 2025 Statement of Operations (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $1,363,217 | $1,194,773 | | Total costs and expenses | $1,557,063 | $1,528,005 | | Operating loss | $(193,846) | $(333,232) | | Net loss | $(139,587) | $(305,090) | [Consolidated Balance Sheets](index=8&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, total assets were **$7.59 billion**, with total liabilities at **$5.28 billion**, resulting in **$2.31 billion** in stockholders' equity Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $4,577,037 | $4,906,757 | | Total assets | $7,589,200 | $7,936,348 | | Total current liabilities | $1,064,437 | $1,243,548 | | Total liabilities | $5,277,865 | $5,485,587 | | Total stockholders' equity | $2,311,335 | $2,450,761 | [Consolidated Statements of Cash Flows](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash from operating activities significantly increased to **$151.6 million**, while investing activities provided cash, and financing activities primarily used cash for repurchases Q1 2025 Cash Flows (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $151,610 | $88,352 | | Net cash provided by (used in) investing activities | $2,754 | $(131,183) | | Net cash provided by (used in) financing activities | $(288,519) | $(675,751) | [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20FINANCIAL%20MEASURES) Reconciliations are provided for Free Cash Flow, which was **$114.4 million**, and Adjusted EBITDA, which reached **$108.4 million**, to their comparable GAAP measures Q1 Free Cash Flow Reconciliation (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $151,610 | $88,352 | | Less: Purchases of property and equipment | (37,214) | (50,448) | | **Free Cash Flow** | **$114,396** | **$37,904** | Q1 Adjusted EBITDA Reconciliation (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(139,587) | $(305,090) | | Stock-based compensation expense | 247,338 | 254,715 | | Depreciation and amortization | 37,715 | 38,098 | | Restructuring charges | — | 70,108 | | Other adjustments | (32,039) | (12,492) | | **Adjusted EBITDA** | **$108,425** | **$45,659** | [Key Business Metrics](index=11&type=section&id=SUPPLEMENTAL%20FINANCIAL%20INFORMATION%20AND%20BUSINESS%20METRICS) Key business metrics show Daily Active Users (DAUs) grew **9%** to **460 million**, primarily driven by the Rest of World region, and Average Revenue Per User (ARPU) increased **5%** Daily Active Users (DAU) by Region (in millions) | Region | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | North America | 99 | 100 | (1)% | | Europe | 99 | 96 | 3% | | Rest of World | 262 | 226 | 16% | | **Total** | **460** | **422** | **9%** | Average Revenue Per User (ARPU) by Region | Region | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | North America | $8.41 | $7.44 | 13% | | Europe | $2.26 | $2.04 | 11% | | Rest of World | $1.17 | $1.13 | 4% | | **Total** | **$2.96** | **$2.83** | **5%** | Revenue by Region (in thousands) | Region | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | North America | $831,691 | $743,131 | 12% | | Europe | $224,015 | $195,844 | 14% | | Rest of World | $307,511 | $255,798 | 20% |

Snap (SNAP 3.92%) will deliver key insights to shareholders on April 29 that investors will not want to miss.*Stock prices used were the afternoon prices of April 22, 2025. The video was published on April 24, 2025. ...

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights. That said, let's delve into the average estimates of some Snap metrics that Wall Street analysts commonly model and monitor. Wall Street analysts expect Snap (SNAP) to post quarterly earnings of $0.04 per share in its upcoming report, which indicates a year-over-year increase of 33. ...

Core Viewpoint - Snap is expected to report its first-quarter 2025 results on April 29, with anticipated revenues between $1.33 billion and $1.36 billion, reflecting a 12.73% increase year-over-year [1][2]. Revenue Expectations - The Zacks Consensus Estimate for Snap's revenues is currently at $1.35 billion, indicating a significant year-over-year growth [2]. - Adjusted EBITDA is projected to be between $40 million and $75 million for the quarter [2]. Earnings Projections - The consensus estimate for earnings remains at 4 cents per share, which represents a 33.33% increase from the previous year's 3 cents [3]. - Snap has surpassed the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average positive surprise of 58.57% [3]. Factors Influencing Performance - Snap is expected to benefit from strong growth in its direct response advertising business, particularly in retail, gaming, and financial services [4]. - The Snapchat+ subscription service has seen its subscriber count double year-over-year to 14 million, contributing significantly to revenue growth [5]. - The rollout of Sponsored Snaps and Promoted Places is likely to attract more advertising spend, especially from small and medium-sized businesses [6]. Cost Considerations - Snap anticipates a year-over-year increase in adjusted operating expenses of 11-12%, driven by headcount growth, wage inflation, and higher legal costs [7]. - Infrastructure efficiencies are expected to help offset some of the increased costs, with management estimating lower infrastructure costs per daily active user [8]. Earnings Outlook - Snap currently has an Earnings ESP of -25.00% and a Zacks Rank of 3, indicating a lower likelihood of an earnings beat [9].

Core Viewpoint - Meta's CEO Mark Zuckerberg suggested that Snapchat could have experienced faster growth if Meta had acquired it in 2013 for $6 billion, a claim made during the ongoing antitrust trial [1][2]. Group 1: Acquisition Attempt - Meta, previously known as Facebook, offered to buy Snapchat for $6 billion, contrary to earlier reports of $3 billion [2]. - Zuckerberg expressed that he believed Snapchat was not reaching its growth potential and that Meta could have enhanced the app's development [2]. Group 2: Antitrust Implications - The government referenced the failed acquisition to argue that Meta seeks to maintain its dominance in social media by acquiring competitors instead of competing directly [3]. - The FTC is pursuing actions to compel Meta to restructure or divest Instagram and WhatsApp, claiming that the acquisitions were made to eliminate competition and establish an illegal monopoly [3].

Company Performance - Snap's stock closed at $7.96, reflecting a +1.66% change from the previous day, underperforming the S&P 500's gain of 1.81% [1] - Over the last month, Snap's shares decreased by 6.45%, which is better than the Computer and Technology sector's loss of 7.27% but worse than the S&P 500's loss of 6.14% [1] Upcoming Earnings - Snap is expected to release its earnings on April 29, 2025, with a predicted EPS of $0.04, indicating a 33.33% growth year-over-year [2] - The Zacks Consensus Estimate for revenue is projected at $1.35 billion, representing a 12.77% increase from the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, the Zacks Consensus Estimates predict an EPS of $0.36 and revenue of $6.01 billion, reflecting changes of +24.14% and +12.13% respectively from the previous year [3] - Recent analyst estimate revisions suggest optimism regarding Snap's business and profitability [3] Valuation Metrics - Snap's current Forward P/E ratio is 22.06, which is lower than the industry's Forward P/E of 24.57 [6] - The company has a PEG ratio of 0.72, compared to the Internet - Software industry's average PEG ratio of 1.85 [6] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 85, placing it in the top 35% of over 250 industries [7] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [7]

Core Insights - Snap is launching Sponsored AI Lenses, a new ad format utilizing generative AI technology to enhance brand engagement and user experience [1][2][3] - The new ad format has shown potential to increase user engagement, with impressions rising by 25-45% in a single day [1][2] - Snap's strategy aims to strengthen its brand advertising segment and improve revenue performance through innovative ad solutions [3] Financial Performance - The Zacks Consensus Estimate for Snap's Q1 2025 earnings is 4 cents per share, indicating a year-over-year growth of 33.33% [4] - Expected revenues for Q1 2025 are projected between $1.33 billion and $1.36 billion, with a consensus of $1.35 billion, reflecting a year-over-year increase of 12.82% [4] Stock Performance - Snap's shares have decreased by 33.4% over the past 12 months, underperforming both the Zacks Computer and Technology sector and the S&P 500 index [6] - The decline in brand-oriented advertising revenues has contributed to Snap's underperformance, with this segment experiencing a downturn for two consecutive years [7] Competitive Landscape - Snap faces significant competition from Meta Platforms, Alphabet, and Apple, which impacts its market position and share performance [8] - Despite competition, Snap has seen growth from small businesses and direct response advertisements, indicating potential for recovery in its brand advertising business [9] Long-term Growth Prospects - Snap's long-term growth is supported by investments in machine learning, scalable ad formats, and creator engagement, with a notable increase in active advertisers [10][11] - The company has achieved significant traction with Snapchat+, reaching 14 million subscribers, reflecting its commitment to innovation and user experience [11] - Snap currently holds a Zacks Rank 2 (Buy) and a Growth Score of A, indicating a strong investment opportunity [12]