Snap Inc. Files Q3 2024 10-Q Report

TL;DR

**SNAP files 10-Q for Q3 2024. Financials out.**

AI Summary

Snap Inc. filed its 10-Q for the period ending September 30, 2024, reporting on its financial performance. The filing details its fiscal year end as December 31st and provides information on its common stock classes. The company is headquartered in Santa Monica, California.

Why It Matters

This filing provides investors and analysts with the latest financial data for Snap Inc., crucial for understanding the company's performance and making informed investment decisions.

Risk Assessment

Risk Level: medium — 10-Q filings are standard financial reports, but the inherent risks of the tech and social media industry, along with company-specific performance, contribute to a medium risk level.

Key Numbers

• 20240930 — Reporting Period End Date (Indicates the end of the fiscal quarter covered by the report.)
• 20241030 — Filing Date (Shows when the report was officially submitted to the SEC.)

Key Players & Entities

• Snap Inc. (company) — Filer of the 10-Q report
• 20240930 (date) — End of the reporting period
• 20241030 (date) — Filing date of the report
• Santa Monica, CA (location) — Company headquarters

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-20240930.htm (10-Q) — 1877KB
• snap-20240930xexx311.htm (EX-31.1) — 10KB
• snap-20240930xexx312.htm (EX-31.2) — 10KB
• snap-20240930xex321.htm (EX-32.1) — 6KB
• snap-20240930_g1.jpg (GRAPHIC) — 74KB
• snap-20240930_g2.jpg (GRAPHIC) — 40KB
• snap-20240930_g3.jpg (GRAPHIC) — 32KB
• snap-20240930_g4.jpg (GRAPHIC) — 41KB
• snap-20240930_g5.jpg (GRAPHIC) — 73KB
• snap-20240930_g6.jpg (GRAPHIC) — 42KB
• snap-20240930_g7.jpg (GRAPHIC) — 25KB
• snap-20240930_g8.jpg (GRAPHIC) — 37KB
• 0001564408-24-000062.txt ( ) — 9241KB
• snap-20240930.xsd (EX-101.SCH) — 52KB
• snap-20240930_cal.xml (EX-101.CAL) — 75KB
• snap-20240930_def.xml (EX-101.DEF) — 293KB
• snap-20240930_lab.xml (EX-101.LAB) — 665KB
• snap-20240930_pre.xml (EX-101.PRE) — 475KB
• snap-20240930_htm.xml (XML) — 1171KB

- 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 89 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 events and conflicts, that we believe may continue to affect our business, financial condition, results of operations, and prospects

- 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Cash flows from operating activities Net loss $ ( 153,247 ) $ ( 368,256 ) $ ( 706,957 ) $ ( 1,074,238 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 38,850 41,209 118,493 116,117 Stock-based compensation 260,229 357,933 783,292 990,807 Amortization of debt issuance costs 2,717 1,842 6,667 5,517 Losses (gains) on debt and equity securities, net 536 21,155 12,166 5,888 Other 2,200 ( 4,395 ) ( 3,829 ) ( 31,098 ) Change in operating assets and liabilities, net of effect of acquisitions: Accounts receivable, net of allowance ( 51,941 ) ( 128,972 ) 73,350 55,772 Prepaid expenses and other current assets 11,914 ( 837 ) ( 36,241 ) ( 15,139 ) Operating lease right-of-use assets 12,731 17,904 41,235 53,379 Other assets 3,090 ( 2,767 ) ( 3,007 ) ( 3,192 ) Accounts payable ( 16,642 ) ( 16,951 ) ( 112,287 ) ( 45,497 ) Accrued expenses and other current liabilities 19,331 105,907 46,771 68,697 Operating lease liabilities ( 16,384 ) ( 16,181 ) ( 44,254 ) ( 52,523 ) Other liabilities 2,488 5,190 7,448 7,457 Net cash provided by (used in) operating activities 115,872 12,781 182,847 81,947 Cash flows from investing activities Purchases of property and equipment ( 44,041 ) ( 73,435 ) ( 146,551 ) ( 158,008 ) Purchases of strategic investments — — ( 2,000 ) ( 7,770 ) Sales of strategic investments 557 5,151 1,572 5,151 Cash paid for acquisitions, net of cash acquired — — — ( 50,254 ) Purchases of marketable securities ( 705,066 ) ( 537,046 ) ( 1,945,590 ) ( 2,042,317 ) Sales of marketable securities 187,754 16,451 354,311 107,724 Maturities of marketable securities 337,985 557,579 1,170,066 2,093,737 Other — ( 308 ) ( 100 ) ( 432 ) Net cash provided by (used in) investing activities ( 222,8

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 nine months ended September 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 f

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View this 10-Q filing on SEC EDGAR