Snap Inc. reports financial results for the Second Quarter of 2022

Daily Active Users increased 18% year-over-year to 347 million and Revenue increased 13% year-over-year to 1,111 Mn USD for Snap Inc.

Snap Inc today announced financial results for the quarter ended June 30, 2022.

“While the continued growth of our community increases the long-term opportunity for our business, our financial results for Q2 do not reflect our ambition," said Evan Spiegel, CEO, Snap Inc. "We are evolving our business and strategy to reaccelerate revenue growth, including innovating on our products, investing heavily in our direct response advertising business, and cultivating new sources of revenue to help diversify our topline growth."

Snap Inc also announced today its Board of Directors has authorised a stock repurchase program of up to 500 Mn USD of its Class A common stock.

Repurchases under this program will be funded from existing cash and cash equivalents. As of June 30, 2022, Snap had 4.9 Bn USD in cash and cash equivalents, restricted cash, and marketable securities.

Q2 2022 Financial Summary

• Revenue increased 13% to $1,111 million, compared to the prior year.
• Net loss was $422 million, compared to $152 million in the prior year.
• Adjusted EBITDA was $7 million, compared to $117 million in the prior year.
• Operating cash flow was $(124) million, compared to $(101) million in the prior year.
• Free Cash Flow was $(147) million, compared to $(116) million in the prior year.

Also read: Snapchat introduces a new web experience for computers

Highlights

The Snapchat community is active, engaged, and growing:

• DAUs were 347 million in Q2 2022, an increase of 54 million, or 18%, year-over-year.
• DAUs increased sequentially and year-over-year in North America, Europe, and the Rest of the World.

Snap Inc. invested in their augmented reality platform:

• The platform released the latest version of Lens Studio, which introduces several features to improve Lens capabilities around ray tracing, lighting, shadows, reflections, and depth and expands their API library and Lens Analytics offerings.
• They even launched Lens Cloud, a collection of backend services that expands the types of AR experiences developers can create.
• Introduced the Snap 3D Asset Manager, a web content management platform for businesses to manage their 3D product catalogue, facilitating the AR Lens creation process.
• They released Dress Up, the newest AR destination on Snapchat where users can discover and browse personalized AR fashion and try-on experiences from creators, retailers, and fashion brands like Dior, Gucci, and Louis Vuitton.
• The platform even added AR Shopping to its Camera Kit offering, allowing businesses like Puma to integrate try-on Lenses into their own mobile applications.
• Snapchat partnered with Vogue to launch a new AR Landmarker Lens and exhibition, Vogue x Snapchat: Redefining the Body– Snapchatters visiting La Malmaison in Cannes, and around the world, browsed and virtually tried on clothing from leading fashion brands like Balenciaga and Versace.
• They partnered with Tiffany & Co. to create AR try-on Lenses, making it possible for anyone to wear and experience some of their most iconic heritage pieces. They used Camera Kit to bring Lenses into their own mobile application, which enriched the experience of their Vision & Virtuosity exhibition at the Saatchi Gallery in London.

Snapchat grew its content offerings:

• Total time spent watching Spotlight content grew 59% year-over-year.
• The daily average number of Snapchatters aged 25 and older engaging with shows and publisher content increased by more than 40% year-over-year.
• Over 10 million Snapchatters have watched “The Fight Inside,” our new Snap Original featuring Ryan Garcia and his struggles with mental health and professional boxing.
• The platform renewed its partnerships with the NFL, WNBA, and NBA with content deals covering Discover Shows, Spotlight Challenges, AR experiences, and Cameos.
• They launched Director Mode, the latest set of camera and editing tools for content creators and users that includes exciting features like its new Dual Camera capability, Green Screen mode to manage video backgrounds, and Quick Edit to combine multiple Snaps.
• The platform even announced its latest slate of Snap Originals, starring well-known personalities like gymnast Simone Biles, Indigenous creators Marika Sila and Kairyn Potts, and returning sister-duo Dixie and Charli D’Amelio.

Snapchat even expanded its product and partner ecosystem:

• They partnered with Live Nation to develop interactive AR Lens experiences for attendees at music festivals including EDC in Las Vegas, Governors Ball Music Festival in New York, and Wireless Festival in London, with more AR experiences to come at Rolling Loud in Miami, Lollapalooza in Chicago, and Austin City Limits Music Festival.
• They rolled out Snapchat+, a paid subscription service that offers exclusive, experimental, and pre-release features such as Snapchat for Web, which is currently available for subscribers in the United States, United Kingdom, and Canada.
• The platform even released Pixy, their pocket-sized camera that can float, orbit, and follow the lead to capture the perfect picture or video, all without a controller or any set-up.
• They rolled out their newest Map Layer from restaurant review site The Infatuation, allowing Snapchatters from over 10 major cities to discover popular nearby restaurants and read reviews, right from the Snap Map.
• Snapchat released its new Minis Private Components System, giving developers the ability to securely add social elements like reviews and ratings to their Minis, thus leveraging their communities’ friends graphs on Snapchat.
• They introduced their eBay integration that allows users to share eBay product listings directly with their friends via the Snapchat Camera.
• The platform even introduced Shared Stories, making it even easier for groups of friends to collaborate and share Stories.

Snapchat expanded its offering for advertisers:

• Rolled out their new AR Image Processing technology for businesses, which transforms existing 2D product photography into AR-ready assets for try-on Lenses, further simplifying the AR Lens workflow.
• They even rolled out Dynamic Travel Ads, the first category expansion outside e-commerce of our current Dynamic Ads offering, specifically serving hotels, airlines, tours, and online travel agencies.
• They have added native actions as a reporting option in Ads Manager, allowing businesses to understand how their advertising impacts their store and organic engagement on Snapchat.
• Snapchat expanded the multi-format delivery of ad creatives by supporting Lenses as an available option, further allowing Snap to optimize delivery across multiple ad formats.
• Public Profiles are now enabled by default for all new advertisers, which allows users to reach businesses organically on Snapchat.
• Partnered with MAGNA to release their latest study, “The Augmented Reality Playbook: Understanding the Role of AR in the Purchase Journey,” which highlights how AR represents a differentiated opportunity for brands to build connections with consumers and drive meaningful business results.
• The platform even rolled out the Snap Ramadan Mall, its first AR-powered virtual mall in the MENA region, where Snapchatters can browse virtual stores from brands such as L’Oreal, IKEA, and Samsung right from the Snap Camera.