Snap Inc. Files 10-Q for Q2 2024

TL;DR

Snap Inc. 10-Q filed for Q2 2024. Check financials.

AI Summary

Snap Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers the second quarter and first half of the fiscal year. Key financial data and operational details for Snap Inc. are presented in this report.

Why It Matters

This filing provides investors and analysts with the latest financial performance and operational updates for Snap Inc., crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: medium — 10-Q filings are standard for public companies, but the specific financial details within can reveal significant risks or opportunities.

Key Numbers

• 3000 31ST STREET — Business Address (Physical location of Snap Inc.'s headquarters)
• 90405 — ZIP Code (Postal code for Snap Inc.'s headquarters)
• (310) 399-3339 — Business Phone (Contact number for Snap Inc.)

Key Players & Entities

• Snap Inc. (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 20240802 (date) — Date the filing was made
• Santa Monica, CA (location) — Company's business and mailing address

FAQ

Key Financial Figures

• $0.00001 — stered Class A Common Stock, par value $0.00001 per share SNAP New York Stock Exchange

Filing Documents

• snap-20240630.htm (10-Q) — 1870KB
• snap-20240630xexx311.htm (EX-31.1) — 10KB
• snap-20240630xexx312.htm (EX-31.2) — 10KB
• snap-20240630xex321.htm (EX-32.1) — 6KB
• snap-20240630_g1.jpg (GRAPHIC) — 73KB
• snap-20240630_g2.jpg (GRAPHIC) — 40KB
• snap-20240630_g3.jpg (GRAPHIC) — 32KB
• snap-20240630_g4.jpg (GRAPHIC) — 41KB
• snap-20240630_g5.jpg (GRAPHIC) — 73KB
• snap-20240630_g6.jpg (GRAPHIC) — 42KB
• snap-20240630_g7.jpg (GRAPHIC) — 24KB
• snap-20240630_g8.jpg (GRAPHIC) — 37KB
• 0001564408-24-000050.txt ( ) — 8998KB
• snap-20240630.xsd (EX-101.SCH) — 51KB
• snap-20240630_cal.xml (EX-101.CAL) — 75KB
• snap-20240630_def.xml (EX-101.DEF) — 282KB
• snap-20240630_lab.xml (EX-101.LAB) — 655KB
• snap-20240630_pre.xml (EX-101.PRE) — 462KB
• snap-20240630_htm.xml (XML) — 1098KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 6 Consolidated Statements of Cash Flows 6 Consolidated Statements of Operations 7 Consolidated Statements of Comprehensive Income (Loss) 8 Consolidated Balance Sheets 9 Consolidated Statements of Stockholders' Equity 10

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 42 Item 4.

Controls and Procedures

Controls and Procedures 43

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 45 Item 1A.

Risk Factors

Risk Factors 46 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 87 Item 3. Defaults Upon Senior Securities 87 Item 4. Mine Safety Disclosures 87 Item 5. Other Information 87 Item 6. Exhibits 88

Signatures

Signatures 90 Snap Inc., "Snapchat," and our other registered and common-law trade names, trademarks, and service marks appearing in this Quarterly Report on Form 10-Q are the property of Snap Inc. or our subsidiaries. 2 Table of Contents NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this report, including statements regarding guidance, our future results of operations or financial condition, our future stock repurchase programs or stock dividends, business strategy and plans, user growth and engagement, product initiatives, objectives of management for future operations, and advertiser and partner offerings, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "going to," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would" or the negative of these words or other similar terms or expressions. We caution you that the foregoing may not include all of the forward-looking statements made in this report. You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends, including our financial outlook, macroeconomic uncertainty, and geo-political conflicts, that we believe may continue to affect our business, financial condition, results of operations, and prospects. These for

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Snap Inc. Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Cash flows from operating activities Net loss $ ( 248,620 ) $ ( 377,308 ) $ ( 553,710 ) $ ( 705,982 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 37,930 39,688 79,643 74,908 Stock-based compensation 259,311 317,943 523,063 632,874 Amortization of debt issuance costs 2,208 1,839 3,950 3,675 Losses (gains) on debt and equity securities, net 2,662 ( 4,434 ) 11,630 ( 15,267 ) Other 10,583 ( 16,307 ) ( 6,029 ) ( 26,703 ) Change in operating assets and liabilities, net of effect of acquisitions: Accounts receivable, net of allowance ( 36,916 ) ( 103,629 ) 125,291 184,744 Prepaid expenses and other current assets ( 34,526 ) ( 1,098 ) ( 48,155 ) ( 14,302 ) Operating lease right-of-use assets 14,929 17,817 28,504 35,475 Other assets ( 955 ) ( 1,275 ) ( 6,097 ) ( 425 ) Accounts payable ( 61,556 ) 8,426 ( 95,645 ) ( 28,546 ) Accrued expenses and other current liabilities 45,821 52,981 27,440 ( 37,210 ) Operating lease liabilities ( 13,940 ) ( 17,792 ) ( 27,870 ) ( 36,342 ) Other liabilities 1,692 1,213 4,960 2,267 Net cash provided by (used in) operating activities ( 21,377 ) ( 81,936 ) 66,975 69,166 Cash flows from investing activities Purchases of property and equipment ( 52,062 ) ( 36,943 ) ( 102,510 ) ( 84,573 ) Purchases of strategic investments ( 2,000 ) ( 3,290 ) ( 2,000 ) ( 7,770 ) Sales of strategic investments 1,006 — 1,015 — Cash paid for acquisitions, net of cash acquired — ( 50,254 ) — ( 50,254 ) Purchases of marketable securities ( 774,852 ) ( 631,218 ) ( 1,240,524 ) ( 1,505,271 ) Sales of marketable securities 166,557 85,922 166,557 91,273 Maturities of marketable securities 447,153 611,835 832,081 1,536,158 Other ( 100 ) ( 2,451 ) ( 100 ) ( 124 ) Net cash provided by (used i

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 1. Description of Business and Summary of Significant Accounting Policies Snap Inc. is a technology company. Snap Inc. ("we," "our," or "us"), a Delaware corporation, is headquartered in Santa Monica, California. Our flagship product, Snapchat, is a visual messaging application that was created to help people communicate through short videos and images called "Snaps." Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information. Our consolidated financial statements include the accounts of Snap Inc. and our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Our fiscal year ends on December 31. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as filed with the Securities and Exchange Commission (the "SEC") in February 2024 (the "Annual Report"). In our opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of our financial position, results of operations, and cash flows. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024. There have been no changes to our significant accounting policies described in our Annual Report that have had a material impact on our consolidated financial statements and related notes. Use of Estimates The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financi

View Full Filing

View this 10-Q filing on SEC EDGAR