Snap Inc. – Snap Inc. Declares Fourth Quarter and Full 12 months 2021 Monetary Outcomes

Each day Lively Customers elevated 20% year-over-year to 319 million

Fourth quarter income elevated 42% and full yr income elevated 64% year-over-year

First quarter of constructive internet earnings as a public firm

First full yr of constructive working money circulate and Free Money Circulate

SANTA MONICA, Calif.–(BUSINESS WIRE)–
Snap Inc. (NYSE: SNAP) as we speak introduced monetary outcomes for the quarter and full yr ended December 31, 2021.

“2021 was an thrilling yr for Snap and we made vital progress rising our enterprise and serving our world neighborhood,” stated Evan Spiegel, CEO. “The power of our core enterprise has enabled us to speed up our investments in augmented actuality, remodeling the way in which that the Snapchat neighborhood experiences the world by way of our digital camera.”

Annual Monetary Highlights

• Income elevated 64% to $4.1 billion in 2021, in comparison with the prior yr.
• Web loss improved 48% to $488 million in 2021, in comparison with the prior yr.
• Second consecutive yr of constructive Adjusted EBITDA with $617 million in 2021.
• First full yr of constructive working money circulate and Free Money Circulate of $293 million and $223 million.

Quarterly Monetary Highlights

• Income elevated 42% to $1.Three billion in This autumn 2021, in comparison with the prior yr.
• First quarter of constructive internet earnings as a public firm of $23 million in This autumn 2021.
• Adjusted EBITDA improved 97% to $327 million in This autumn 2021, in comparison with the prior yr.
• Working money circulate was $186 million in This autumn 2021, in comparison with $(53) million within the prior yr.
• Free Money Circulate was $161 million in This autumn 2021, in comparison with $(69) million within the prior yr.

	Three Months Ended December 31,								P.c				Twelve Months Ended December 31,								P.c
	2021				2020				Change				2021				2020				Change
(Unaudited)	(in 1000’s, besides per share quantities)
Income	$	1,297,885			$	911,322				42	%		$	4,117,048			$	2,506,626				64	%
Working loss	$	(25,127	)		$	(97,236	)			74	%		$	(702,069	)		$	(862,072	)			19	%
Web earnings (loss)	$	22,550			$	(113,099	)			120	%		$	(487,955	)		$	(944,839	)			48	%
Adjusted EBITDA(1)	$	326,793			$	165,609				97	%		$	616,686			$	45,163				1,265	%
Web money supplied by (utilized in) working actions	$	185,528			$	(52,545	)			453	%		$	292,880			$	(167,644	)			275	%
Free Money Circulate(2)	$	160,963			$	(68,992	)			333	%		$	223,005			$	(225,476	)			199	%
Diluted internet earnings (loss) per share attributable to widespread stockholders	$	0.01			$	(0.08	)			118	%		$	(0.31	)		$	(0.65	)			52	%
Non-GAAP diluted internet earnings (loss) per share(3)	$	0.22			$	0.09				135	%		$	0.50			$	(0.06	)			895	%

(1)		See web page 10 for reconciliation of internet earnings (loss) to Adjusted EBITDA.
(2)		See web page 10 for reconciliation of internet money supplied by (utilized in) working actions to Free Money Circulate.
(3)		See web page 11 for reconciliation of GAAP diluted internet earnings (loss) per share to non-GAAP diluted internet earnings (loss) per share.

This autumn 2021 Abstract & Key Highlights

The Snapchat neighborhood is energetic, engaged, and rising:

• DAUs had been 319 million in This autumn 2021, a rise of 54 million, or 20%, year-over-year.
• 12 months-over-year progress in DAUs has been 20% or extra for 5 consecutive quarters.
• DAUs elevated sequentially and year-over-year in every of North America, Europe, and Remainder of World.

We invested and innovated in our augmented actuality platform:

• Our 18 New 12 months’s Eve Lenses generated greater than 7 billion impressions.
• We launched a number of enhancements and new options to Lens Studio, together with a brand new Sounds Library, real-world physics, world mesh, and an API library for real-time information.
• Lens Creators can now embrace a Name-to-Motion hyperlink inside a Lens, making it simpler for Lens Creators to develop their companies.
• We partnered with the Nice Barrier Reef Basis to launch a brand new Water Segmentation Lens, which exhibits a digital reconstruction of the Nice Barrier Reef and its ongoing degradation to encourage individuals to guard the world’s delicate reef system.
• We rolled out Meals Scan, the most recent enchancment to our Digicam that makes use of the highly effective visible recognition capabilities of Scan to grasp completely different meals and substances and supply recipe suggestions.

We invested in our content material choices:

• The variety of Highlight viewers subscribing to a Creator greater than doubled relative to the prior quarter.
• Over 20 Highlight creators are additionally syndicating Reveals on Uncover, together with magnificence entrepreneur Patrick Starrr and crafting skilled Lauren Riihimäki, who every reached 5 million Snapchatters with their Reveals.
• We renewed our partnerships with three of the highest premium broadcasters on the earth: NBCUniversal, ViacomCBS, and Disney, who’re chargeable for in style exhibits on Uncover together with The Rundown, MTV Presents, and ESPN GameDay, respectively.
• In This autumn 2021, 25 completely different Uncover companions every reached over 50 million distinctive Snapchatters globally, together with Common Music’s Insurgent Labs, social writer Jungle Creations’ life-style content material, and Group Whistle’s sports activities content material.
• In This autumn 2021, we added greater than 160 new worldwide Uncover channels and onboarded new companions together with Seven.One Leisure Group in Germany and Canal+ in France.
• We partnered with Kim Kardashian West and Kris Jenner to launch the Kindness Highlight Problem, which generated essentially the most submissions for a problem thus far; we partnered with Mariah Carey to launch her hit music “All I Need for Christmas is You” by way of Sounds on Snapchat and as a Highlight Problem, which impressed the creation of over 3.5 million movies that includes the music and over 300 million views.
• Our new Snap Authentic “The Me and You Present”, which stars Snapchatters and their buddies utilizing our Cameos characteristic, reached over 50 million viewers.

We expanded our product and associate ecosystem:

• We launched our first two Snap Map Layers, Reminiscences and Discover, which permit customers to view their saved Snaps by location and discover new ones all over the world and have been used over 100 million occasions since launch.
• We partnered with e-commerce firm Flipkart and cosmetics firms Sugar Cosmetics and MyGlamm to deliver extra AR buying and digital try-on experiences to Snapchatters in India.
• We launched new Lenses with our Digicam Package associate Disney’s PhotoPass service that includes iconic Disney characters like Elsa from Frozen and Timon from The Lion King.
• We launched “Fast Faucet to Snap” for Google’s Pixel 6 and Pixel 6 Professional telephones, enabling customers to entry the Snapchat Digicam straight from the lockscreen with two faucets.
• We partnered with Sony Music Leisure, increasing the library of songs for Snapchatters to make use of in Sounds, Lenses, and extra to all main publishers.
• We partnered with NBCUniversal so Snapchatters can add audio clips from in style TV exhibits and films corresponding to The Workplace, Saturday Evening Stay, and Bridesmaids to their Snaps.

We expanded our providing for advertisers:

• Our first celebration measurement options are actually enabled for advertisers that characterize greater than 75% of our Direct Response income.
• We rolled out multi-format supply of advert creatives, permitting advertisers to make the most of a single advert set throughout a number of advert codecs, and for Snap to optimize supply.
• We launched seven new programs in Snap Focus, our studying portal for entrepreneurs, overlaying subjects from normal marketing campaign optimization and model security to privacy-centric measurement options corresponding to Superior Conversions.
• We launched Catalog-powered Buying Lenses, which give real-time outcomes for manufacturers on SKU-level augmented actuality product engagement, and launched a brand new AR try-on buying interface for Snapchatters.
• Cosmetics firm MAC utilized our self-service Lens Internet Builder instrument, which is now broadly out there to all magnificence manufacturers, to construct a number of AR try-on make-up Lenses. The marketing campaign finally drove 1.Three million try-ons, a 2.4x increased raise in Model Consciousness, a 9x increased raise in Intent, and amongst feminine Snapchatters, a 17x increased raise in Purchases.

Monetary Steerage

The next forward-looking statements mirror our expectations for the primary quarter of 2022 as of February 3, 2022, and are topic to substantial uncertainty. This steering assumes fixed international forex charges, and amongst different issues, that no enterprise acquisitions, divestitures, investments, exits, restructurings, or authorized settlements are concluded within the quarter. Our outcomes are primarily based on assumptions that we consider to be affordable as of this date, however could also be materially affected by many elements, as mentioned under in “Ahead-Wanting Statements.”

Q1 2022 Outlook

• Income is estimated to be between $1,030 million and $1,080 million.
• Adjusted EBITDA is estimated to be roughly breakeven.

Convention Name Info

Snap Inc. will host a convention name to debate the outcomes at 2:00 p.m. Pacific / 5:00 p.m. Japanese as we speak. The reside audio webcast together with supplemental info shall be accessible at investor.snap.com. A recording of the webcast can even be out there following the convention name.

Snap Inc. makes use of its web sites (together with snap.com and investor.snap.com) as means of revealing materials private info and for complying with its disclosure obligation beneath Regulation FD.

Definitions

Free Money Circulate is outlined as internet money supplied by (utilized in) working actions, lowered by purchases of property and tools.

Widespread shares excellent plus shares underlying stock-based awards contains widespread shares excellent, restricted inventory items, restricted inventory awards, and excellent inventory choices.

Adjusted EBITDA is outlined as internet earnings (loss), excluding curiosity earnings; curiosity expense; different earnings (expense) internet; earnings tax profit (expense); depreciation and amortization; stock-based compensation expense and different payroll associated tax expense; and sure different non-cash or non-recurring gadgets impacting internet earnings (loss) every now and then.

A Each day Lively Consumer (DAU) is outlined as a registered Snapchat person who opens the Snapchat software at the least as soon as throughout an outlined 24-hour interval. We calculate common DAUs for a specific quarter by including the variety of DAUs on every day of that quarter and dividing that sum by the variety of days in that quarter.

Common income per person (ARPU) is outlined as quarterly income divided by the typical DAUs.

A Month-to-month Lively Consumer (MAU) is outlined as a registered Snapchat person who opens the Snapchat software at the least as soon as in the course of the 30-day interval ending on the calendar month-end. We calculate common Month-to-month Lively Customers for a specific quarter by calculating the typical of the MAUs as of every calendar month-end in that quarter.

Word: For changes and extra info concerning the non-GAAP monetary measures and different gadgets mentioned, please see “Non-GAAP Monetary Measures,” “Reconciliation of GAAP to Non-GAAP Monetary Measures,” and “Supplemental Monetary Info and Enterprise Metrics.”

About Snap Inc.

Snap Inc. is a digital camera firm. We consider that reinventing the digital camera represents our best alternative to enhance the way in which individuals reside and talk. We contribute to human progress by empowering individuals to precise themselves, reside within the second, be taught in regards to the world, and have enjoyable collectively. For extra info, go to snap.com.

Ahead-Wanting Statements

This press launch incorporates forward-looking statements inside the which means of Part 27A of the Securities Act of 1933, as amended, or the Securities Act, and Part 21E of the Securities Change Act of 1934, as amended, or the Change Act, about us and our trade that contain substantial dangers and uncertainties. All statements apart from statements of historic info contained on this press launch, together with statements concerning steering, our future outcomes of operations or monetary situation, enterprise technique and plans, person progress and engagement, product initiatives, targets of administration for future operations, and advertiser and associate choices, are forward-looking statements. In some circumstances, you’ll be able to determine forward-looking statements as a result of they comprise phrases corresponding to “anticipate,” “consider,” “ponder,” “proceed,” “may,” “estimate,” “anticipate,” “going to,” “intend,” “could,” “plan,” “potential,” “predict,” “venture,” “ought to,” “goal,” “will,” or “would” or the destructive of those phrases or different related phrases or expressions. We warning you that the foregoing could not embrace all the forward-looking statements made on this press launch.

You shouldn’t depend on forward-looking statements as predictions of future occasions. We’ve primarily based the forward-looking statements contained on this press launch totally on our present expectations and projections about future occasions and developments, together with our monetary outlook and the continuing COVID-19 pandemic, that we consider could proceed to have an effect on our enterprise, monetary situation, outcomes of operations, and prospects. These forward-looking statements are topic to dangers and uncertainties associated to: our monetary efficiency; our lack of historic profitability; our capacity to generate and maintain constructive money circulate; our capacity to draw and retain customers, publishers, and advertisers; competitors and new market entrants; managing our worldwide enlargement and our progress and future bills; compliance with new legal guidelines, laws, and government actions; our capacity to take care of, defend, and improve our mental property; our capacity to achieve present and new market segments; our capacity to draw and retain certified and key personnel; our capacity to repay excellent debt; future acquisitions, divestitures or investments; and the potential adversarial influence of local weather change, pure disasters, and well being epidemics, in addition to dangers, uncertainties, and different elements described in “Threat Elements” and elsewhere in our most up-to-date periodic report filed with the SEC, which is on the market on the SEC’s web site at www.sec.gov. Extra info shall be made out there in Snap Inc.’s periodic report that shall be filed with the SEC for the interval coated by this press launch and different filings that we make every now and then with the SEC. As well as, any forward-looking statements contained on this press launch are primarily based on assumptions that we consider to be affordable as of this date. We undertake no obligation to replace any forward-looking statements to mirror occasions or circumstances after the date of this press launch or to mirror new info or the incidence of unanticipated occasions, together with future developments associated to the COVID-19 pandemic, besides as required by legislation.

Non-GAAP Monetary Measures

To complement our consolidated monetary statements, that are ready and offered in accordance with GAAP, we use sure non-GAAP monetary measures, as described under, to grasp and consider our core working efficiency. These non-GAAP monetary measures, which can be completely different than equally titled measures utilized by different firms, are offered to reinforce buyers’ total understanding of our monetary efficiency and shouldn’t be thought of an alternative to, or superior to, the monetary info ready and offered in accordance with GAAP.

We use the non-GAAP monetary measure of Free Money Circulate, which is outlined as internet money supplied by (utilized in) working actions, lowered by purchases of property and tools. We consider Free Money Circulate is a crucial liquidity measure of the money that’s out there, after capital expenditures, for operational bills and funding in our enterprise and is a key monetary indicator utilized by administration. Moreover, we consider that Free Money Circulate is a crucial measure since we use third-party infrastructure companions to host our providers and due to this fact we don’t incur vital capital expenditures to help income producing actions. Free Money Circulate is beneficial to buyers as a liquidity measure as a result of it measures our capacity to generate or use money. As soon as our enterprise wants and obligations are met, money can be utilized to take care of a robust steadiness sheet and put money into future progress.

We use the non-GAAP monetary measure of Adjusted EBITDA, which is outlined as internet earnings (loss); excluding curiosity earnings; curiosity expense; different earnings (expense), internet; earnings tax profit (expense); depreciation and amortization; stock-based compensation expense and different payroll associated tax expense; and sure different non-cash or non-recurring gadgets impacting internet earnings (loss) every now and then. We consider that Adjusted EBITDA helps determine underlying developments in our enterprise that would in any other case be masked by the impact of the bills that we exclude in Adjusted EBITDA.

We use the non-GAAP monetary measure of non-GAAP internet earnings (loss), which is outlined as internet earnings (loss); excluding amortization of intangible belongings; stock-based compensation expense and different payroll associated tax expense; sure different non-cash or non-recurring gadgets impacting internet earnings (loss) every now and then; and associated earnings tax changes. Non-GAAP internet earnings (loss) and weighted common diluted shares are then used to calculate non-GAAP diluted internet earnings (loss) per share. Just like Adjusted EBITDA, we consider these measures assist determine underlying developments in our enterprise that would in any other case be masked by the impact of the bills we exclude within the measure.

We consider that these non-GAAP monetary measures present helpful details about our monetary efficiency, improve the general understanding of our previous efficiency and future prospects, and permit for better transparency with respect to key metrics utilized by our administration for monetary and operational decision-making. We’re presenting these non-GAAP measures to help buyers in seeing our monetary efficiency by way of the eyes of administration, and since we consider that these measures present an extra instrument for buyers to make use of in evaluating our core monetary efficiency over a number of durations with different firms in our trade.

For a reconciliation of those non-GAAP monetary measures to essentially the most straight comparable GAAP monetary measure, please see “Reconciliation of GAAP to Non-GAAP Monetary Measures.”

Snap Inc., “Snapchat,” and our different registered and customary legislation commerce names, logos, and repair marks are the property of Snap Inc. or our subsidiaries.

SNAP INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in 1000’s, unaudited)
	Three Months Ended December 31,								Twelve Months Ended December 31,
	2021				2020				2021				2020
Money flows from working actions
Web earnings (loss)	$	22,550			$	(113,099	)		$	(487,955	)		$	(944,839	)
Changes to reconcile internet earnings (loss) to internet money supplied by (utilized in) working actions:
Depreciation and amortization		34,863				22,811				119,141				86,744
Inventory-based compensation		297,564				219,882				1,092,135				770,182
Amortization of debt low cost and issuance prices		1,010				24,923				4,311				81,401
(Features) losses on debt and fairness securities, internet		(65,525	)			—				(289,052	)			(10,250	)
Induced conversion expense associated to convertible notes		—				—				41,538				—
Different		4,624				(18,958	)			8,643				2,963
Change in working belongings and liabilities, internet of impact of acquisitions:
Accounts receivable, internet of allowance		(154,923	)			(212,508	)			(332,967	)			(255,818	)
Pay as you go bills and different present belongings		(11,045	)			4,765				(26,607	)			(14,587	)
Working lease right-of-use belongings		12,041				10,633				47,258				38,940
Different belongings		(5,476	)			(13,785	)			(10,916	)			(11,442	)
Accounts payable		36,149				8,926				53,579				20,374
Accrued bills and different present liabilities		27,366				14,233				117,092				108,601
Working lease liabilities		(14,029	)			(8,991	)			(49,294	)			(49,730	)
Different liabilities		359				8,623				5,974				9,817
Web money supplied by (utilized in) working actions		185,528				(52,545	)			292,880				(167,644	)
Money flows from investing actions
Purchases of property and tools		(24,565	)			(16,447	)			(69,875	)			(57,832	)
Purchases of strategic investments		(7,650	)			(16,245	)			(41,160	)			(111,586	)
Money paid for acquisitions, internet of money acquired		(134,324	)			(115,138	)			(310,915	)			(168,850	)
Purchases of marketable securities		(542,217	)			(947,707	)			(2,438,983	)			(3,524,599	)
Gross sales of marketable securities		12,000				16,117				379,555				389,974
Maturities of marketable securities		529,981				839,347				2,536,725				2,737,523
Different		(220	)			6,006				34,880				5,506
Web money supplied by (utilized in) investing actions		(166,995	)			(234,067	)			90,227				(729,864	)
Money flows from financing actions
Proceeds from issuance of convertible notes, internet of issuance prices		—				8,168				1,137,227				988,582
Buy of capped calls		—				—				(86,825	)			(100,000	)
Proceeds from the train of inventory choices		2,916				—				14,671				34,209
Web money supplied by financing actions		2,916				8,168				1,065,073				922,791
Change in money, money equivalents, and restricted money		21,449				(278,444	)			1,448,180				25,283
Money, money equivalents, and restricted money, starting of interval		1,973,274				824,987				546,543				521,260
Money, money equivalents, and restricted money, finish of interval	$	1,994,723			$	546,543			$	1,994,723			$	546,543
Supplemental disclosures
Money paid for earnings taxes, internet	$	9,105			$	1,013			$	25,333			$	3,692
Money paid for curiosity	$	638			$	1,641			$	10,887			$	12,019
Supplemental disclosures of non-cash actions
Web change in accounts payable and accrued bills and different present liabilities associated to property and tools additions	$	2,370			$	1,584			$	6,498			$	2,732

SNAP INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in 1000’s, besides per share quantities, unaudited)
	Three Months Ended December 31,								Twelve Months Ended December 31,
	2021				2020				2021				2020
Income	$	1,297,885			$	911,322			$	4,117,048			$	2,506,626
Prices and bills:
Price of income		449,151				385,546				1,750,246				1,182,505
Analysis and growth		434,195				318,446				1,565,467				1,101,561
Gross sales and advertising		245,228				157,634				792,764				555,468
Normal and administrative		194,438				146,932				710,640				529,164
Whole prices and bills		1,323,012				1,008,558				4,819,117				3,368,698
Working loss		(25,127	)			(97,236	)			(702,069	)			(862,072	)
Curiosity earnings		1,554				1,969				5,199				18,127
Curiosity expense		(4,050	)			(29,176	)			(17,676	)			(97,228	)
Different earnings (expense), internet		63,204				29,471				240,175				14,988
Acquire (loss) earlier than earnings taxes		35,581				(94,972	)			(474,371	)			(926,185	)
Earnings tax profit (expense)		(13,031	)			(18,127	)			(13,584	)			(18,654	)
Web earnings (loss)	$	22,550			$	(113,099	)		$	(487,955	)		$	(944,839	)
Web earnings (loss) per share attributable to Class A, Class B, and Class C widespread stockholders:
Primary	$	0.01			$	(0.08	)		$	(0.31	)		$	(0.65	)
Diluted	$	0.01			$	(0.08	)		$	(0.31	)		$	(0.65	)
Weighted common shares utilized in computation of internet earnings (loss) per share:
Primary		1,604,778				1,484,277				1,558,997				1,455,693
Diluted		1,668,879				1,484,277				1,558,997				1,455,693

SNAP INC. CONSOLIDATED BALANCE SHEETS (in 1000’s, besides par worth)
	December 31, 2021				September 30, 2021				December 31, 2020
	(unaudited)				(unaudited)
Property
Present belongings
Money and money equivalents	$	1,993,809			$	1,972,358			$	545,618
Marketable securities		1,699,076				1,509,463				1,991,922
Accounts receivable, internet of allowance		1,068,873				913,539				744,288
Pay as you go bills and different present belongings		92,244				76,669				56,147
Whole present belongings		4,854,002				4,472,029				3,337,975
Property and tools, internet		202,644				189,946				178,709
Working lease right-of-use belongings		322,252				291,181				269,728
Intangible belongings, internet		277,654				261,131				105,929
Goodwill		1,588,452				1,484,108				939,259
Different belongings		291,302				412,770				192,638
Whole belongings	$	7,536,306			$	7,111,165			$	5,024,238
Liabilities and Stockholders’ Fairness
Present liabilities
Accounts payable	$	125,282			$	91,769			$	71,908
Working lease liabilities		52,396				56,191				41,077
Accrued bills and different present liabilities		674,108				660,536				554,342
Whole present liabilities		851,786				808,496				667,327
Convertible senior notes, internet		2,253,087				2,252,079				1,675,169
Working lease liabilities, noncurrent		325,509				292,506				287,292
Different liabilities		315,756				317,968				64,474
Whole liabilities		3,746,138				3,671,049				2,694,262
Commitments and contingencies
Stockholders’ fairness
Class A non-voting widespread inventory, $0.00001 par worth. 3,000,000 shares licensed, 1,364,887, 1,349,890, and 1,248,010 shares issued and excellent at December 31, 2021, September 30, 2021, and December 31, 2020, respectively.		14				13				12
Class B voting widespread inventory, $0.00001 par worth. 700,000 shares licensed, 22,769, 23,636, and 23,696 shares issued and excellent at December 31, 2021, September 30, 2021, and December 31, 2020, respectively.		—				—				—
Class C voting widespread inventory, $0.00001 par worth. 260,888 shares licensed, 231,627, 231,627, and 231,627 shares issued and excellent at December 31, 2021, September 30, 2021, and December 31, 2020, respectively.		2				2				2
Extra paid-in capital		12,069,097				11,737,338				10,200,141
Accrued different complete earnings (loss)		5,521				9,779				21,363
Accrued deficit		(8,284,466	)			(8,307,016	)			(7,891,542	)
Whole stockholders’ fairness		3,790,168				3,440,116				2,329,976
Whole liabilities and stockholders’ fairness	$	7,536,306			$	7,111,165			$	5,024,238

SNAP INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (in 1000’s, unaudited)
	Three Months Ended December 31,								Twelve Months Ended December 31,
	2021				2020				2021				2020
Free Money Circulate reconciliation:
Web money supplied by (utilized in) working actions	$	185,528			$	(52,545	)		$	292,880			$	(167,644	)
Much less:
Purchases of property and tools		(24,565	)			(16,447	)			(69,875	)			(57,832	)
Free Money Circulate	$	160,963			$	(68,992	)		$	223,005			$	(225,476	)

	Three Months Ended December 31,								Twelve Months Ended December 31,
	2021				2020				2021				2020
Adjusted EBITDA reconciliation:
Web earnings (loss)	$	22,550			$	(113,099	)		$	(487,955	)		$	(944,839	)
Add (deduct):
Curiosity earnings		(1,554	)			(1,969	)			(5,199	)			(18,127	)
Curiosity expense		4,050				29,176				17,676				97,228
Different (earnings) expense, internet		(63,204	)			(29,471	)			(240,175	)			(14,988	)
Earnings tax (profit) expense		13,031				18,127				13,584				18,654
Depreciation and amortization		34,863				22,811				119,141				86,744
Inventory-based compensation expense		297,564				219,882				1,092,135				770,182
Payroll tax expense associated to stock-based compensation		19,493				20,152				107,479				50,309
Adjusted EBITDA	$	326,793			$	165,609			$	616,686			$	45,163

Whole depreciation and amortization expense by operate:
	Three Months Ended December 31,								Twelve Months Ended December 31,
	2021				2020				2021				2020
Depreciation and amortization expense:
Price of income	$	4,832			$	5,533			$	19,711			$	22,205
Analysis and growth		19,444				10,723				62,159				37,627
Gross sales and advertising		7,118				3,136				21,772				12,916
Normal and administrative		3,469				3,419				15,499				13,996
Whole	$	34,863			$	22,811			$	119,141			$	86,744

SNAP INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued) (in 1000’s, besides per share quantities, unaudited)
Whole stock-based compensation expense by operate:
	Three Months Ended December 31,								Twelve Months Ended December 31,
	2021				2020				2021				2020
Inventory-based compensation expense:
Price of income	$	2,586			$	2,896			$	17,221			$	9,367
Analysis and growth		202,953				155,436				740,130				533,272
Gross sales and advertising		45,991				28,964				164,241				108,270
Normal and administrative		46,034				32,586				170,543				119,273
Whole	$	297,564			$	219,882			$	1,092,135			$	770,182

	Three Months Ended December 31,								Twelve Months Ended December 31,
	2021				2020				2021				2020
Non-GAAP internet earnings (loss) reconciliation:
Web earnings (loss)	$	22,550			$	(113,099	)		$	(487,955	)		$	(944,839	)
Amortization of intangible belongings		20,228				9,727				63,184				33,507
Inventory-based compensation expense		297,564				219,882				1,092,135				770,182
Payroll tax expense associated to stock-based compensation		19,493				20,152				107,479				50,309
Earnings tax changes		(374	)			(511	)			(192	)			(96	)
Non-GAAP internet earnings (loss)	$	359,461			$	136,151			$	774,651			$	(90,937	)
Weighted-average widespread shares – Diluted(1)		1,668,879				1,484,277				1,558,997				1,455,693
Non-GAAP diluted internet earnings (loss) per share reconciliation:
Diluted internet earnings (loss) per share	$	0.01			$	(0.08	)		$	(0.31	)		$	(0.65	)
Non-GAAP adjustment to internet earnings (loss)		0.21				0.17				0.81				0.59
Non-GAAP diluted internet earnings (loss) per share	$	0.22			$	0.09			$	0.50			$	(0.06	)

(1)

For the three months ended December 31, 2021, the weighted common widespread shares utilized in computation of diluted internet earnings per share excludes shares underlying excellent convertible notes and capped calls as such shares had been anti-dilutive. For the twelve months ended December 31, 2021, and the three and twelve months ended December 31, 2020, the weighted common widespread shares utilized in computation of diluted internet loss per share excludes shares underlying excellent stock-based awards, convertible notes, and capped calls as such shares had been anti-dilutive.

SNAP INC. SUPPLEMENTAL FINANCIAL INFORMATION AND BUSINESS METRICS ({dollars} and shares in 1000’s, besides per person quantities, unaudited)
	Q3 2020				This autumn 2020				Q1 2021				Q2 2021				Q3 2021				This autumn 2021
Money Flows and Shares
Web money supplied by (utilized in) working actions	$	(54,828	)		$	(52,545	)		$	136,886			$	(101,086	)		$	71,552			$	185,528
Web money supplied by (utilized in) working actions – YoY (year-over-year)		28	%			21	%			(2,079	)%			(52	)%			231	%			453	%
Web money supplied by (utilized in) working actions – TTM (trailing twelve months)	$	(181,941	)		$	(167,644	)		$	(37,041	)		$	(71,573	)		$	54,807			$	292,880
Purchases of property and tools	$	(14,727	)		$	(16,447	)		$	(10,851	)		$	(14,623	)		$	(19,836	)		$	(24,565	)
Purchases of property and tools – YoY		86	%			81	%			—				(7	)%			35	%			49	%
Purchases of property and tools – TTM	$	(50,478	)		$	(57,832	)		$	(57,792	)		$	(56,648	)		$	(61,757	)		$	(69,875	)
Free Money Circulate	$	(69,555	)		$	(68,992	)		$	126,035			$	(115,709	)		$	51,716			$	160,963
Free Money Circulate – YoY		17	%			9	%			2,835	%			(41	)%			174	%			333	%
Free Money Circulate – TTM	$	(232,419	)		$	(225,476	)		$	(94,833	)		$	(128,221	)		$	(6,950	)		$	223,005
Widespread shares excellent		1,484,716				1,503,333				1,519,001				1,576,744				1,605,153				1,619,283
Widespread shares excellent – YoY		7	%			6	%			6	%			8	%			8	%			8	%
Shares underlying stock-based awards		138,914				126,287				110,190				104,516				92,726				82,814
Shares underlying stock-based awards – YoY		(21	)%			(21	)%			(26	)%			(31	)%			(33	)%			(34	)%
Whole widespread shares excellent plus shares underlying stock-based awards		1,623,630				1,629,620				1,629,191				1,681,260				1,697,879				1,702,097
Whole widespread shares excellent plus shares underlying stock-based awards – YoY		4	%			3	%			3	%			4	%			5	%			4	%
Outcomes of Operations
Income	$	678,668			$	911,322			$	769,584			$	982,108			$	1,067,471			$	1,297,885
Income – YoY		52	%			62	%			66	%			116	%			57	%			42	%
Income – TTM	$	2,156,193			$	2,506,626			$	2,813,732			$	3,341,682			$	3,730,485			$	4,117,048
Income by area(1)
North America	$	492,928			$	659,163			$	552,972			$	701,735			$	786,917			$	932,077
North America – YoY		56	%			73	%			75	%			129	%			60	%			41	%
North America – TTM	$	1,497,347			$	1,774,481			$	2,011,803			$	2,406,798			$	2,700,787			$	2,973,701
Europe	$	102,480			$	141,608			$	113,619			$	152,268			$	153,121			$	208,912
Europe – YoY		49	%			54	%			49	%			94	%			49	%			48	%
Europe – TTM	$	349,486			$	399,221			$	436,342			$	509,975			$	560,616			$	627,920
Remainder of World	$	83,260			$	110,551			$	102,993			$	128,105			$	127,433			$	156,896
Remainder of World – YoY		35	%			27	%			46	%			86	%			53	%			42	%
Remainder of World – TTM	$	309,360			$	332,924			$	365,587			$	424,909			$	469,082			$	515,427
Working loss	$	(167,864	)		$	(97,236	)		$	(303,606	)		$	(192,512	)		$	(180,824	)		$	(25,127	)
Working loss – YoY		27	%			62	%			(6	)%			38	%			(8	)%			74	%
Working loss – Margin		(25	)%			(11	)%			(39	)%			(20	)%			(17	)%			(2	)%
Working loss – TTM	$	(1,018,432	)		$	(862,072	)		$	(879,314	)		$	(761,218	)		$	(774,178	)		$	(702,069	)
Web earnings (loss)	$	(199,853	)		$	(113,099	)		$	(286,882	)		$	(151,664	)		$	(71,959	)		$	22,550
Web earnings (loss) – YoY		12	%			53	%			6	%			53	%			64	%			120	%
Web earnings (loss) – TTM	$	(1,072,444	)		$	(944,839	)		$	(925,785	)		$	(751,498	)		$	(623,604	)		$	(487,955	)
Adjusted EBITDA	$	56,361			$	165,609			$	(1,709	)		$	117,403			$	174,199			$	326,793
Adjusted EBITDA – YoY		233	%			291	%			98	%			223	%			209	%			97	%
Adjusted EBITDA – Margin(2)		8	%			18	%			—				12	%			16	%			25	%
Adjusted EBITDA – TTM	$	(78,139	)		$	45,163			$	124,691			$	337,664			$	455,502			$	616,686

(1)		Whole income for geographic reporting is apportioned to every area primarily based on our dedication of the geographic location by which promoting impressions are delivered, as this approximates income primarily based on person exercise. This allocation is in keeping with how we decide ARPU.
(2)		We outline Adjusted EBITDA margin as Adjusted EBITDA divided by GAAP income.

SNAP INC. SUPPLEMENTAL FINANCIAL INFORMATION AND BUSINESS METRICS (continued) ({dollars} and shares in 1000’s, besides per person quantities, unaudited)
	Q3 2020				This autumn 2020				Q1 2021				Q2 2021				Q3 2021				This autumn 2021
Different
DAU (in hundreds of thousands)		249				265				280				293				306				319
DAU – YoY		18	%			22	%			22	%			23	%			23	%			20	%
DAU by area (in hundreds of thousands)
North America		90				92				93				95				96				97
North America – YoY		7	%			6	%			5	%			6	%			7	%			6	%
Europe		72				74				77				78				80				82
Europe – YoY		10	%			10	%			9	%			10	%			11	%			11	%
Remainder of World		87				99				111				120				130				140
Remainder of World – YoY		43	%			55	%			57	%			55	%			49	%			41	%
ARPU	$	2.73			$	3.44			$	2.74			$	3.35			$	3.49			$	4.06
ARPU – YoY		28	%			33	%			36	%			76	%			28	%			18	%
ARPU by area
North America	$	5.49			$	7.19			$	5.94			$	7.37			$	8.20			$	9.58
North America – YoY		46	%			63	%			66	%			116	%			49	%			33	%
Europe	$	1.43			$	1.91			$	1.48			$	1.95			$	1.92			$	2.54
Europe – YoY		36	%			39	%			36	%			76	%			34	%			33	%
Remainder of World	$	0.95			$	1.11			$	0.93			$	1.07			$	0.98			$	1.12
Remainder of World – YoY		(6	)%			(18	)%			(7	)%			20	%			3	%			1	%
Staff (full-time; excludes part-time, contractors, and non permanent personnel)		3,713				3,863				4,043				4,667				5,190				5,661
Staff – YoY		28	%			21	%			18	%			31	%			40	%			47	%
Depreciation and amortization expense
Price of income	$	5,615			$	5,533			$	5,276			$	4,727			$	4,876			$	4,832
Analysis and growth		9,526				10,723				11,036				14,358				17,321				19,444
Gross sales and advertising		3,233				3,136				3,186				5,162				6,306				7,118
Normal and administrative		3,430				3,419				4,000				4,023				4,007				3,469
Whole	$	21,804			$	22,811			$	23,498			$	28,270			$	32,510			$	34,863
Depreciation and amortization expense – YoY		6	%			11	%			11	%			35	%			49	%			53	%
Inventory-based compensation expense
Price of income	$	2,623			$	2,896			$	2,656			$	2,847			$	9,132			$	2,586
Analysis and growth		132,003				155,436				163,793				174,491				198,893				202,953
Gross sales and advertising		27,393				28,964				29,084				37,491				51,675				45,991
Normal and administrative		30,061				32,586				41,450				41,771				41,198				46,034
Whole	$	192,080			$	219,882			$	237,073			$	256,600			$	300,898			$	297,564
Inventory-based compensation expense – YoY		19	%			32	%			38	%			38	%			57	%			35	%

 

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