Snap Inc. - Informational Report

SNAP
Informational Report Dec2017

SygnalInformational ReportSnap Inc. NYSE:SNAP
Disclaimer
© Sygnal Media 2017. All Rights Reserved.
This document has been produced for information purposes only and is not to be relied upon or construed as
investment advice or a solicitation or an offer to purchase or sell investments or related financial instruments,
and is of a general and impersonal nature. The data contained herein have not been adapted to and are not
intended for use in any particular investment strategy or portfolio.
The information, data, analyses and opinions presented herein are not warranted to be correct, complete,
accurate, or up to date and it should not be relied upon as such.
The opinions expressed are as of the date written and are subject to change without notice. Sygnal Media shall
not be responsible for any trading decisions, damages or other losses resulting from, or related to, the
information, data, analyses or opinions or their use. Recipients of this document should make their own
investment decisions based upon their own financial objectives and financial resources and, if in any doubt,
should seek advice from an investment advisor.
The information contained herein is the proprietary property of Sygnal Media and may not be reproduced, in
whole or in part, or used in any manner, without the prior written consent of Sygnal Media.
For more information, visit us at http://www.sygnalmedia.com
Report created on: 12/14/2017 © Sygnal Media 2017. All Rights Reserved. 3

Company Profile
Snap Inc. (NYSE:SNAP) was formed as Future Freshman, LLC, a California limited liability
company, in 2010. Their name was changed to Toyopa Group, LLC in 2011,
incorporated as Snapchat, Inc., a Delaware corporation, in 2012, and finally changed to
Snap Inc. in 2016. Snap Inc. is headquartered in Venice, California.
Snap Inc. is a camera company whose flagship product, Snapchat, is a camera
application that was created to help people communicate through short videos and
images. Each of those short videos or images is called a Snap.
On average, 178 million people use Snapchat daily, and over 3.5 billion Snaps are
created every day.

Public Offering
In March 2017, Snap completed their initial public offering (“IPO”) in which they issued
and sold 160.3 million shares of Class A common stock, inclusive of the over-allotment,
at a public offering price of $17.00 per share and excluding shares sold in the IPO by
certain existing stockholders.
Snap received net proceeds of $2.6 billion after deducting underwriting discounts and
commissions of $68.1 million and other offering expenses of $14.7 million.

Stockholder Equity
Snap has three classes of shares. The Class A common stock has no voting rights, the
Class B common stock is entitled to one vote per share, and the Class C common stock
is entitled to 10 votes per share.
Class A: 863,056,520 shares outstanding as of October 31, 2017
Class B: 125,316,628 shares outstanding as of October 31, 2017
Class C: 215,887,848 shares outstanding as of October 31, 2017

Voting Power
Snap’s two co-founders have control over all stockholder decisions because they
control a substantial majority of the voting stock. As a result of the Class C common
stock that they hold, Evan Spiegel, co-founder and Chief Executive Officer, and Robert
Murphy, co-founder and Chief Technology Officer, are able to exercise voting rights
with respect to an aggregate of 215,887,848 shares of Class C common stock, which
represents approximately 94.5% of the voting power of outstanding capital stock as of
September 30, 2017.
Mr. Spiegel and Mr. Murphy, and potentially either one of them alone, have the ability
to control the outcome of all matters submitted to stockholders for approval, including
the election, removal, and replacement of directors and any merger, consolidation, or
sale of all or substantially all of Snap assets.

Headcount
Snap employee headcount has increased significantly, with the number of full-time
employees increasing from 600 as of December 31, 2015 to 1,859 as of December 31,
2016.

User Demographic
The majority of Snapchat users are 18-34 years old.
Users younger than 25
Users younger than 25 visited Snapchat over 20 times and spent over 30 minutes on
Snapchat every day on average in the quarter ended December 31, 2016.
Users 25 and older
Users 25 and older visited Snapchat approximately 12 times and spent approximately
20 minutes on Snapchat every day on average in the quarter ended December 31,
2016.

Usage
Snap defines a daily active user as a registered Snapchat user who opens the Snapchat
application at least once during a defined 24-hour period.
Year over year
Snapchat daily active users (DAU) grew from 153 million in Q3 2016 to 178 million in
Q3 2017, an increase of 25.2 million or 17% year-over-year.
Quarter over quarter
Snapchat daily active users (DAU) increased 4.5 million or 3% quarter-over-quarter,
from 173 million in Q2 2017.

Monetization
Average revenue per user (ARPU) was $1.17 in the third quarter of 2017, up from $0.84
a year ago and $1.05 in the second quarter of 2017.
In North America, ARPU was $2.17, 88% higher than Snap’s global average.

Revenue
Quarter
In the three months ended September 30, 2017, Snap recorded revenue of $207.9
million as compared to revenue of $128.2 million for the same period in 2016,
representing a 62% year-over-year increase.
Year to date
In the nine months ended September 30, 2017, we recorded revenue of $539.3 million
as compared to revenue of $238.8 million for the same period in 2016, a 126% year-
over-year increase.

Acquisitions
Zenly SAS
In May 2017, Snap acquired Zenly SAS, a company that develops a location-based
application that allows users to see where their friends are on a map, for the purpose
of enhancing the functionality of the Snap platform.
The total consideration paid was $213.3 million in cash.
Placed, Inc.
In July 2017, Snap acquired Placed, Inc. (“Placed”), a location-based measurement
services company, with the purpose of enhancing Snap’s measurement capabilities.
The total consideration was $185.9 million.

Competition
Snap faces a number of competitive challenges, both domestically and internationally,
from companies such as:
 Apple
 Facebook (including Instagram and WhatsApp)
 Tencent
 Google (including YouTube)
 Twitter
 Kakao
 LINE
 Naver (including Snow)
Instagram, a subsidiary of Facebook, has proven to be the most significant competitor
to Snap and introduced a “stories” feature that largely mimics the Stories feature from
Snap.

Significant Events
Nov 2017: On November 7, 2017, Tim Sehn notified Snap that he would resign as
Senior Vice President of Engineering, effective on December 1, 2017. Jerry Hunter, who
is currently Vice President of Core Engineering, will assume Mr. Sehn's responsibilities.
Nov 2017: Tencent Holdings Limited notified Snap that it, together with its affiliates,
acquired 145,778,246 shares of non-voting Class A common stock via open market
purchases.
Nov 2017 : CEO Evan Spiegel announced during an earnings call that Snapchat plans to
redesign its application to create the next version of the social media feed.
Mar 2017: NBC invested $500 million in the Snapchat IPO as part of its ambitious
investment in digital media.

Website

Headquarters

SEC Filings
https://investor.snap.com/financial-information/sec-filings

Disclaimer
© Sygnal Media 2017. All Rights Reserved.
This document has been produced for information purposes only and is not to be relied upon or construed as
investment advice or a solicitation or an offer to purchase or sell investments or related financial instruments,
and is of a general and impersonal nature. The data contained herein have not been adapted to and are not
intended for use in any particular investment strategy or portfolio.
The information, data, analyses and opinions presented herein are not warranted to be correct, complete,
accurate, or up to date and it should not be relied upon as such.
The opinions expressed are as of the date written and are subject to change without notice. Sygnal Media shall
not be responsible for any trading decisions, damages or other losses resulting from, or related to, the
information, data, analyses or opinions or their use. Recipients of this document should make their own
investment decisions based upon their own financial objectives and financial resources and, if in any doubt,
should seek advice from an investment advisor.
The information contained herein is the proprietary property of Sygnal Media and may not be reproduced, in
whole or in part, or used in any manner, without the prior written consent of Sygnal Media.
For more information, visit us at http://www.sygnalmedia.com

Snap Inc. - Informational Report

Recommended

Recommended

More Related Content

Similar to Snap Inc. - Informational Report

Similar to Snap Inc. - Informational Report (20)

Recently uploaded

Recently uploaded (20)

Snap Inc. - Informational Report