NYSE$SNAP

Snapchat Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Snapchat's Q3 2020 earnings demonstrated strong growth, driven by increased user engagement and advertising revenue.

Snap Inc. announced strong Q3 2020 financial results with revenue increasing 52% year-over-year to $679 million and daily active users (DAU) growing 18% year-over-year to 249 million. The company's net loss improved to $(200) million, and adjusted EBITDA was $56 million, showcasing positive momentum during a challenging period.

  • Daily Active Users (DAUs) increased by 18% year-over-year, reaching 249 million.
  • Revenue grew by 52% year-over-year, totaling $679 million.
  • Net loss improved to $(200) million compared to $(227) million in the prior year.
  • Adjusted EBITDA was $56 million, a significant improvement from $(42) million in the prior year.

Headline financials

Total Revenue

$679M

Previous: $446M+52.1%
EPS (adj)

$0.01

Previous: -$0.04+125.0%
Global DAU

249.0M

Previous: 210.0M+18.6%
NA DAU

90.0M

Previous: 84.0M+7.1%
EU DAU

72.0M

Previous: 65.0M+10.8%
RoW DAU

87.0M

Previous: 61.0M+42.6%
Global ARPU

$2.73

Previous: $2.12+28.8%
NA ARPU

$5.49

Previous: $3.75+46.4%
EU ARPU

$1.43

Previous: $1.05+36.2%
RoW ARPU

$0.95

Previous: $1.01-5.9%
Capital Expenditures

-$14.7M

Previous: -$7.94M-85.5%
Free Cash Flow

-$215M

Previous: -$235M+8.8%
Net Income

-$200M

Previous: -$227M+12.1%
Operating Income

-$168M

Previous: -$229M+26.6%
Gross Profit

$386M

Previous: $223M+72.9%
Cash & Equivalents

$824M

Previous: $729M+13.1%
Total Assets

$4.82B

Previous: $3.86B+24.7%
Stock-Based Comp

$192M

Previous: $161M+19.1%

Revenue & EPS history

Snapchat · Revenue · Quarterly

$679M

Q3 2020+52.1%vs Q3 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Forward guidance

Due to uncertainties related to the COVID-19 pandemic and rapidly shifting macro conditions, Snap Inc. is not providing revenue or Adjusted EBITDA guidance for the fourth quarter of 2020.

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 Q3 2020

Historical avgQ3 2020

-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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