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Jan Dawson
Chief Analyst
(408) 744-6244
jan@jackdawresearch.com
@jandawson
SNAP INC Q4 2016
2
• This deck is a free sample of the Jackdaw Research Quarterly
Company Decks subscription service
• The paid service inc...
3
• Snap Inc (maker of the Snapchat app) is not yet a public company
• It filed confidentially with the SEC for an IPO in la...
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...
5 Source: Snap financial filings, Jackdaw Research analysis
REVENUE
BY REGION, $000
0
20,000
40,000
60,000
80,000
100,000
12...
6 Source: Snap financial filings, Jackdaw Research analysis
REVENUE
SPLIT BY REGION, %
0%
20%
40%
60%
80%
100%
Q1 2015 Q2 20...
7 Source: Snap financial filings, Jackdaw Research analysis
REVENUE
PERCENTAGE OF TOTAL REVENUE FROM ADVERTISING, %
0%
20%
4...
8 Source: Snap financial filings, Jackdaw Research analysis
GROSS MARGIN
AS REPORTED
-700%
-600%
-500%
-400%
-300%
-200%
-10...
9 Source: Snap financial filings, Jackdaw Research analysis
COSTS
AS MULTIPLE OF REVENUE, QUARTERLY
0
5
10
15
20
25
30
Q1 20...
10 Source: Snap financial filings, Jackdaw Research analysis
COSTS
AS MULTIPLE OF REVENUE, QUARTERLY – SHORTER TERM VIEW
0
1...
11 Source: Snap financial filings, Jackdaw Research analysis
DAILY ACTIVE USERS
QUARTERLY AVERAGE METHOD, M
0
50
100
150
200...
12 Source: Snap financial filings, Jackdaw Research analysis
DAILY ACTIVE USERS
LAST MONTH OF THE QUARTER METHOD, M
0
50
100...
13 Source: Snap financial filings, Jackdaw Research analysis
DAILY ACTIVE USERS
QUARTERLY AVERAGE METHOD, BY REGION, M
0
50
...
14 Source: Snap financial filings, Jackdaw Research analysis
DAILY ACTIVE USERS
QUARTERLY AVERAGE METHOD, BY REGION, M
0%
20...
15 Source: Snap financial filings, Jackdaw Research analysis
DAILY ACTIVE USERS
QUARTERLY AVERAGE METHOD, BY REGION, M
0
10
...
16 Source: Snap financial filings, Jackdaw Research analysis
GROWTH IN DAILY ACTIVE USERS
QUARTER ON QUARTER, QUARTERLY AVER...
17 Source: Snap financial filings, Jackdaw Research analysis
GROWTH IN DAILY ACTIVE USERS
QUARTER ON QUARTER, QUARTERLY AVER...
18 Source: Snap financial filings, Jackdaw Research analysis
GROWTH IN DAILY ACTIVE USERS
YEAR ON YEAR, QUARTERLY AVERAGE ME...
19 Source: Snap financial filings, Jackdaw Research analysis
REVENUE SHARE
TO PUBLISHER PARTNERS, FROM SNAP-SOLD ADS, $000
0...
20 Source: Snap financial filings, Jackdaw Research analysis
MISCELLANEOUS DATA POINTS
FROM THE S-1 FILING, MOSTLY RELATING ...
Jan Dawson
Chief Analyst
(408) 744-6244
jan@jackdawresearch.com
@jandawson
FOR ANY QUESTIONS,
PLEASE CONTACT:
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Snapchat IPO Filing Chart Deck

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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.

Published in: Technology

Snapchat IPO Filing Chart Deck

  1. 1. Jan Dawson Chief Analyst (408) 744-6244 jan@jackdawresearch.com @jandawson SNAP INC Q4 2016
  2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 21. Jan Dawson Chief Analyst (408) 744-6244 jan@jackdawresearch.com @jandawson FOR ANY QUESTIONS, PLEASE CONTACT:

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