NYSE$SNAP

Snapchat Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Snapchat's Q4 2019 earnings report showed strong growth in revenue and daily active users, with progress towards profitability.

Snap Inc. announced a 44% year-over-year increase in Q4 2019 revenue, reaching $561 million. Daily Active Users (DAU) also saw a significant rise, increasing by 17% to 218 million. The company's operating cash flow and Free Cash Flow improved, while net loss increased due to non-recurring legal charges. Adjusted EBITDA showed substantial improvement, reaching $42 million.

  • Daily Active Users (DAUs) increased by 17% year-over-year to 218 million in Q4 2019.
  • Revenue grew by 44% year-over-year to $561 million in Q4 2019.
  • Operating cash flow improved by $59 million to $(67) million in Q4 2019.
  • Adjusted EBITDA improved by $93 million to $42 million in Q4 2019.

Headline financials

Total Revenue

$561M

Previous: $390M+43.9%
EPS (adj)

$0.03

Previous: -$0.04+175.0%
Global DAU

218.0M

Previous: 186.0M+17.2%
NA DAU

86.0M

Previous: 79.0M+8.9%
EU DAU

67.0M

Previous: 60.0M+11.7%
RoW DAU

64.0M

Previous: 47.0M+36.2%
Global ARPU

$2.58

Previous: $2.09+23.4%
NA ARPU

$4.42

Previous: $3.38+30.8%
EU ARPU

$1.37

Previous: $1.04+31.7%
RoW ARPU

$1.35

Previous: $1.24+8.9%
Capital Expenditures

$9.09M

Previous: $22.7M-60.0%
Free Cash Flow

-$75.9M

Previous: -$149M+49.0%
Net Income

-$241M

Previous: -$192M-25.6%
Operating Income

-$254M

Previous: -$195M-30.2%
Gross Profit

$307M

Previous: $177M+73.8%
Cash & Equivalents

$521M

Previous: $387M+34.6%
Total Assets

$4.01B

Previous: $2.71B+47.8%
Stock-Based Comp

$167M

Previous: $122M+36.9%

Revenue & EPS history

Snapchat · Revenue · Quarterly

$561M

Q4 2019+43.9%vs Q4 2018
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

Snap Inc. provided the following forward-looking statements for Q1 2020: Revenue is expected to be between $450 million and $470 million, compared to $320 million in Q1 2019, and Adjusted EBITDA is expected to be between $(90) and $(70) million, compared to $(123) million in Q1 2019.

Tailwinds

  • Revenue is expected to be between $450 million and $470 million, compared to $320 million in Q1 2019.
  • Adjusted EBITDA is expected to be between $(90) and $(70) million, compared to $(123) million in Q1 2019.

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 Q4 2019

Historical avgQ4 2019

-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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