This deck provides a visual summary of Snap Inc's IPO filing, with charts on financial and operating metrics. A detailed analysis of these figures and others can be found at https://medium.com/beyond-devices. This deck is also part of the Jackdaw Research Quarterly Decks Service (https://jackdawresearch.com/quarterly-company-decks/), a subscription service which provides similar slide decks on the major consumer tech companies each quarter following earnings.

1. Jan Dawson
Chief Analyst
(408) 744-6244
jan@jackdawresearch.com
@jandawson
SNAP INC Q4 2016

2. 2
• This deck is a free sample of the Jackdaw Research Quarterly
Company Decks subscription service
• The paid service includes about a dozen similar decks produced
each quarter on major consumer tech companies
• The intention is to highlight trends and patterns which are not
always obvious when merely looking at a spreadsheet
• Accompanying analysis can often be found on our blog at
www.beyonddevic.es
• For more information, please visit:
https://jackdawresearch.com/quarterly-company-decks/
INTRODUCTION
JACKDAW RESEARCH QUARTERLY DECKS SERVICE

3. 3
• Snap Inc (maker of the Snapchat app) is not yet a public company
• It filed confidentially with the SEC for an IPO in late 2016, and on
February 2, 2017, it released its S-1 publicly
• We therefore finally have deep insights into the key financial and
operating metrics at Snap as it prepares for an IPO, albeit only for a
short period – it generated no meaningful revenue before 2015, so the
financials only cover 2015 and 2016, though some other metrics go
back to 2014
• Assuming the IPO goes ahead, I will be adding Snap to the list of
companies for which decks are provided each quarter as part of the
Jackdaw Research Quarterly Decks Service
INTRODUCTION
SNAP INC FINANCIALS

4. 4
REVENUE
QUARTERLY, $000
0
50,000
100,000
150,000
200,000
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016
Source: Snap financial filings, Jackdaw Research analysis

5. 5 Source: Snap financial filings, Jackdaw Research analysis
REVENUE
BY REGION, $000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016
North America Europe Rest of World

6. 6 Source: Snap financial filings, Jackdaw Research analysis
REVENUE
SPLIT BY REGION, %
0%
20%
40%
60%
80%
100%
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016
North America Europe Rest of World

7. 7 Source: Snap financial filings, Jackdaw Research analysis
REVENUE
PERCENTAGE OF TOTAL REVENUE FROM ADVERTISING, %
0%
20%
40%
60%
80%
100%
2015 2016
96%98%

8. 8 Source: Snap financial filings, Jackdaw Research analysis
GROSS MARGIN
AS REPORTED
-700%
-600%
-500%
-400%
-300%
-200%
-100%
0%
100%
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016
Snap’s Gross Margin is its only margin which is anywhere
close to positive (it was marginally positive in Q4 2016) –
all other margins are at around -100% or worse, so it’s
meaningful to put them on a slide. See the succeeding
slides for some other indicators of profitability

9. 9 Source: Snap financial filings, Jackdaw Research analysis
COSTS
AS MULTIPLE OF REVENUE, QUARTERLY
0
5
10
15
20
25
30
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016
Cost of revenue R&D S&M G&A Total

10. 10 Source: Snap financial filings, Jackdaw Research analysis
COSTS
AS MULTIPLE OF REVENUE, QUARTERLY – SHORTER TERM VIEW
0
1
2
3
4
Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016
Cost of revenue R&D S&M G&A

11. 11 Source: Snap financial filings, Jackdaw Research analysis
DAILY ACTIVE USERS
QUARTERLY AVERAGE METHOD, M
0
50
100
150
200
Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016

12. 12 Source: Snap financial filings, Jackdaw Research analysis
DAILY ACTIVE USERS
LAST MONTH OF THE QUARTER METHOD, M
0
50
100
150
200
Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016
Some other companies (Twitter and Facebook, for
example) report user numbers based on the last month
of each quarter. Snap instead prefers to use quarterly
averages (as shown on the previous slide), but also
provides this version based on last month of the quarter.

13. 13 Source: Snap financial filings, Jackdaw Research analysis
DAILY ACTIVE USERS
QUARTERLY AVERAGE METHOD, BY REGION, M
0
50
100
150
200
Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016
North America
Europe
Rest of World

14. 14 Source: Snap financial filings, Jackdaw Research analysis
DAILY ACTIVE USERS
QUARTERLY AVERAGE METHOD, BY REGION, M
0%
20%
40%
60%
80%
100%
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016
North America Europe Rest of World

15. 15 Source: Snap financial filings, Jackdaw Research analysis
DAILY ACTIVE USERS
QUARTERLY AVERAGE METHOD, BY REGION, M
0
10
20
30
40
50
60
70
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016
North America Europe Rest of World

16. 16 Source: Snap financial filings, Jackdaw Research analysis
GROWTH IN DAILY ACTIVE USERS
QUARTER ON QUARTER, QUARTERLY AVERAGE METHOD, M
0
5
10
15
20
25
Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

17. 17 Source: Snap financial filings, Jackdaw Research analysis
GROWTH IN DAILY ACTIVE USERS
QUARTER ON QUARTER, QUARTERLY AVERAGE METHOD, BY REGION, M
0
1
2
4
5
6
7
Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016
North America Europe Rest of World

18. 18 Source: Snap financial filings, Jackdaw Research analysis
GROWTH IN DAILY ACTIVE USERS
YEAR ON YEAR, QUARTERLY AVERAGE METHOD, M
0
10
20
30
40
50
60
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

19. 19 Source: Snap financial filings, Jackdaw Research analysis
REVENUE SHARE
TO PUBLISHER PARTNERS, FROM SNAP-SOLD ADS, $000
0
10,000
20,000
30,000
40,000
50,000
60,000
2015 2016

20. 20 Source: Snap financial filings, Jackdaw Research analysis
MISCELLANEOUS DATA POINTS
FROM THE S-1 FILING, MOSTLY RELATING TO Q4 2016
Snaps created per day 2.5 billion
% of DAUs creating a Snap with
the Camera daily
Over 60%
Visits to Snapchat per day per
DAU
18
% of users posting to their Story
every day
25%
Average time spent per day 25-30 minutes

21. Jan Dawson
Chief Analyst
(408) 744-6244
jan@jackdawresearch.com
@jandawson
FOR ANY QUESTIONS,
PLEASE CONTACT: