NYSE$SNAP

Snapchat Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Snapchat's Q4 2020 earnings showcased strong growth in revenue and user engagement.

Snap Inc. reported a 62% year-over-year increase in revenue, reaching $911 million, and a 22% increase in daily active users (DAUs), totaling 265 million. The company's net loss was $(113) million, while Adjusted EBITDA was $166 million. Snap delivered its first full year of Adjusted EBITDA profitability and is focusing on investments in augmented reality, mapping, and content.

  • Revenue increased by 62% year-over-year to $911 million.
  • Daily Active Users (DAUs) grew by 22% year-over-year to 265 million.
  • Net loss was $(113) million, an improvement compared to the prior year.
  • Adjusted EBITDA reached $166 million, marking a significant increase year-over-year.

Headline financials

Total Revenue

$911M

Previous: $561M+62.5%
EPS (adj)

$0.09

Previous: $0.03+200.0%
Global DAU

265.0M

Previous: 218.0M+21.6%
NA DAU

92.0M

Previous: 86.0M+7.0%
EU DAU

74.0M

Previous: 67.0M+10.4%
RoW DAU

99.0M

Previous: 64.0M+54.7%
Global ARPU

$3.44

Previous: $2.58+33.3%
NA ARPU

$7.19

Previous: $4.42+62.7%
EU ARPU

$1.91

Previous: $1.37+39.4%
RoW ARPU

$1.11

Previous: $1.35-17.8%
Capital Expenditures

$16.4M

Previous: $9.09M+80.9%
Free Cash Flow

-$69M

Previous: -$75.9M+9.1%
Net Income

-$113M

Previous: -$241M+53.0%
Operating Income

-$97.2M

Previous: -$254M+61.7%
Gross Profit

$526M

Previous: $307M+71.0%
Cash & Equivalents

$547M

Previous: $521M+4.9%
Total Assets

$5.02B

Previous: $4.01B+25.2%
Stock-Based Comp

$220M

Previous: $167M+31.9%

Revenue & EPS history

Snapchat · Revenue · Quarterly

$911M

Q4 2020+62.5%vs Q4 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Forward guidance

Snap Inc. provided forward-looking statements for Q1 2021, with revenue estimated to be between $720 million and $740 million, compared to $462 million in Q1 2020. Adjusted EBITDA is estimated to be between $(70) million and $(50) million, compared to $(81) million in Q1 2020.

Tailwinds

  • Revenue is estimated to be between $720 million and $740 million, compared to $462 million in Q1 2020.
  • Adjusted EBITDA is estimated to be between $(70) million and $(50) million, compared to $(81) million in Q1 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 Q4 2020

Historical avgQ4 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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