Snap(US:SNAP)2025-04-29 23:33Financial Performance - Snap Inc. reported a net loss of $139,587,000 for Q1 2025, a significant improvement from a net loss of $305,090,000 in Q1 2024, representing a 54.3% reduction in losses [29]. - Total revenue for Q1 2025 was $1,363,217,000, up from $1,194,773,000 in Q1 2024, indicating a year-over-year growth of 14.1% [29]. - Operating loss decreased to $193,846,000 in Q1 2025 from $333,232,000 in Q1 2024, reflecting a 41.8% improvement [29]. - Snap Inc. experienced a comprehensive loss of $129,664,000 in Q1 2025, compared to a comprehensive loss of $311,471,000 in Q1 2024, a 58.4% improvement [31]. - The net loss attributable to common stockholders for the three months ended March 31, 2025, was $118.7 million, resulting in a basic and diluted net loss per share of $0.08 [61]. - The net loss for the three months ended March 31, 2025, was $139.6 million, an improvement compared to a net loss of $305.1 million for the same period in 2024 [124]. - Adjusted EBITDA was $108.4 million, compared to $45.7 million in the prior year [131]. - Free Cash Flow was $114.4 million, compared to $37.9 million in the prior year [131]. Revenue Breakdown - Advertising revenue reached $1,210.9 million, up from $1,107.9 million year-over-year, representing a growth of 9.3% [55]. - Other revenue, primarily from Snapchat+, increased significantly to $152.3 million from $86.9 million, marking a growth of 75.5% [55]. - North America generated $804.9 million in revenue, a 9.7% increase from $733.4 million in the prior year [56]. - Revenue for Q1 2025 was $1,363.2 million, an increase of 14% year-over-year from $1,194.8 million [131]. - Revenue for the three months ended March 31, 2025, was $1,363.2 million, an increase of $168.4 million or 14% compared to the same period in 2024 [160]. Cash Flow and Liquidity - Cash flows from operating activities generated $151,610,000 in Q1 2025, compared to $88,352,000 in Q1 2024, marking a 71.4% increase [27]. - Cash, cash equivalents, and marketable securities totaled $3.2 billion as of March 31, 2025 [131]. - Net cash provided by operating activities was $151.6 million for Q1 2025, up from $88.4 million in Q1 2024, primarily due to a $194.2 million decrease in accounts receivable [186]. - Net cash used in investing activities was $2.8 million in Q1 2025, a significant improvement from net cash used of $131.2 million in Q1 2024 [187]. - Net cash used in financing activities was $288.5 million in Q1 2025, a reduction from $675.8 million in Q1 2024 [188]. Assets and Liabilities - Cash and cash equivalents at the end of Q1 2025 were $916,079,000, down from $1,063,880,000 at the end of Q1 2024 [27]. - Total assets decreased to $7,589,200,000 as of March 31, 2025, from $7,936,348,000 at the end of 2024 [34]. - Total liabilities decreased to $5,277,865,000 as of March 31, 2025, compared to $5,485,587,000 at the end of 2024 [34]. - Total long-lived assets as of March 31, 2025, were $1.03 billion, slightly up from $1.02 billion as of December 31, 2024 [125]. Stock and Compensation - The weighted average shares used in the computation of net loss per share increased to 1,696,353 in Q1 2025 from 1,647,387 in Q1 2024 [29]. - Total stock-based compensation expense for Q1 2025 was $247.3 million, a decrease of 6.0% from $263.8 million in Q1 2024 [67]. - The total unrecognized compensation cost related to outstanding RSUs and RSAs was $1.3 billion as of March 31, 2025, expected to be recognized over a weighted-average period of 2.0 years [64]. - The company repurchased 27.3 million shares of Class A common stock for $257.1 million during Q1 2025, with $243.2 million remaining under the stock repurchase authorization [68]. Legal and Regulatory Issues - The company is involved in multiple legal proceedings, including a federal securities class-action lawsuit regarding misleading statements about Apple's App Tracking Transparency framework [211]. - The company faces allegations related to the addictive nature of its platform and its impact on minors' mental health, with cases consolidated in federal and state courts [212]. - A lawsuit has been filed alleging the company is responsible for deaths related to fentanyl transactions facilitated through its platform, with some claims allowed to proceed by the court [213]. - The U.S. Federal Trade Commission has referred a complaint regarding the company's My AI feature to the Department of Justice, which could lead to further legal challenges [214]. Market and Competitive Environment - The company is facing increased competition for advertising dollars, which may adversely affect revenue growth [130]. - The advertising business is seasonal and cyclical, leading to fluctuations in quarterly revenues and operating results [222]. - Macroeconomic factors such as inflation and supply chain disruptions could adversely affect the company's operations and advertising spending [223]. - The company aims to expand its community through innovation and acquisitions, but faces competition from larger companies with more resources [224]. - The company has experienced significant growth in its community but also faces the risk of declines in user engagement [225].