NYSE$SNAP

Snapchat Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Snapchat's Q2 2023 results reflected growth in daily active users, progress in advertising ROI, and expansion of Snapchat+ subscribers.

Snap Inc. announced its Q2 2023 financial results, reporting a revenue of $1,068 million, a net loss of $377 million, and 397 million daily active users. The company saw growth in user engagement and made strides in its advertising platform and augmented reality capabilities.

  • Daily Active Users (DAUs) increased by 14% year-over-year to 397 million.
  • Total time spent watching Spotlight content more than tripled year-over-year.
  • Snapchat+ reached over 4 million paying subscribers one year after launch.
  • The company is focused on accelerating and diversifying revenue growth through improvements to its advertising platform and augmented reality platform.

Headline financials

Total Revenue

$1.07B

Previous: $1.11B-3.9%
EPS (adj)

-$0.02

Previous: -$0.02+0.0%
Global DAU

397.0M

Previous: 347.0M+14.4%
NA DAU

101.0M

Previous: 99.0M+2.0%
EU DAU

94.0M

Previous: 86.0M+9.3%
RoW DAU

202.0M

Previous: 162.0M+24.7%
Global ARPU

$2.69

Previous: $3.20-15.9%
NA ARPU

$6.83

Previous: $7.93-13.9%
EU ARPU

$1.93

Previous: $1.98-2.5%
RoW ARPU

$0.98

Previous: $0.96+2.1%
Capital Expenditures

-$36.9M

Previous: -$23.4M-58.1%
Free Cash Flow

-$414M

Previous: -$445M+7.0%
Net Income

-$377M

Previous: -$422M+10.6%
Operating Income

-$404M

Previous: -$401M-0.8%
Gross Profit

$571M

Previous: $665M-14.1%
Cash & Equivalents

$1.23B

Previous: $2.3B-46.5%
Total Assets

$7.67B

Previous: $8.79B-12.8%
Stock-Based Comp

$318M

Previous: $319M-0.3%

Revenue & EPS history

Snapchat · Revenue · Quarterly

$1.07B

Q2 2023-3.9%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Snap Inc. anticipates continued robust growth in its global community, with Q3 DAU expected to reach 405 million to 406 million. Revenue is estimated to be between $1,070 to $1,130 million, and Adjusted EBITDA is expected to be between negative $50 million and negative $100 million.

Tailwinds

  • Continued robust growth in global community is anticipated.
  • Q3 DAU is expected to reach 405 million to 406 million.
  • Focus on improving advertising platform.
  • Investment in ML, AI, and other infrastructure to improve ad performance.
  • Careful calibration of operating investments to focus on essential inputs.

Headwinds

  • Business remains in a period of rapid transition.
  • Forward visibility of advertising demand remains limited.
  • Q3 revenue implies negative 5% to flat year-over-year growth.
  • Adjusted EBITDA is estimated to be between negative $50 million and negative $100 million.
  • Estimated infrastructure costs per DAU of $0.79 to $0.84 in Q3.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-3.8%

Avg return

Earnings day

-2.0%

Avg return

5 days after

-2.6%

Avg return

30 days after

29%

12 / 41 earnings

Positive

+49.8%

Q4 2017

Best reaction

-35.8%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%-9.5%-5.9%
Q4 2025-13.4%-11.5%-12.7%
Q3 2025-12.3%+20.0%+8.4%
Q1 2025-12.4%-5.9%-9.2%
Q4 2024-8.4%-7.7%-16.2%
Q3 2024+17.8%+17.0%+8.4%
Q2 2024-29.7%-35.1%-29.9%
Q1 2024+31.3%+35.8%+37.4%
Q4 2023-31.9%-33.7%-29.3%
Q3 2023-3.2%-2.0%+29.7%
Q2 2023-15.4%-15.8%-26.1%
Q1 2023-11.8%-15.9%+4.0%
Q4 2022-6.5%-0.8%-8.9%
Q3 2022-28.5%-11.6%-3.1%
Q2 2022-35.8%-37.9%-25.5%
Q1 2022-3.3%-6.7%-24.4%
Q4 2021+21.3%+17.1%+3.2%
Q3 2021-27.1%-26.8%-32.2%
Q2 2021+23.0%+16.7%+14.7%
Q1 2021+5.1%+3.8%-2.9%
Q4 2020+7.4%+6.0%-3.1%
Q3 2020+27.4%+50.6%+47.6%
Q2 2020-8.2%-12.3%-13.6%
Q1 2020+31.7%+23.8%+35.8%
Q4 2019-11.2%-6.0%-24.0%
Q3 2019-9.6%-4.3%+3.4%
Q2 2019+24.5%+26.4%+13.6%
Q1 2019-2.3%-5.4%-3.6%
Q4 2018+24.0%+31.3%+36.9%
Q3 2018-4.7%-2.4%-5.9%
Q2 2018-6.3%-5.7%-24.9%
Q1 2018-23.0%-24.7%-20.5%
Q4 2015-6.4%-12.4%-12.2%
Q4 2017+49.8%+35.7%+27.4%
Q3 2016-18.1%-18.0%-0.3%
Q3 2017-12.9%-14.0%-0.9%
Q2 2016-8.5%-4.7%+11.4%
Q2 2017-12.8%-6.0%+13.1%
Q4 2016-16.7%-9.6%-21.3%
Q1 2016-16.7%-9.6%-21.3%
Q1 2017-22.6%-11.1%-22.5%
Q3 2015
Q2 2015
Q1 2015

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