News

Snap Inc. Announces Second Quarter 2019 Financial Results

Daily Active Users increased 8% year-over-year to 203 million

Revenue increased 48% year-over-year to $388 million

Adjusted EBITDA improved 53% year-over-year to $(79) million

SANTA MONICA, Calif.–(BUSINESS WIRE)–Snap Inc. (NYSE: SNAP) today announced financial results for the quarter ended June 30, 2019.

Financial Highlights

  • Operating cash flow improved by $104 million to $(96) million in Q2 2019, compared to the prior year.
  • Free Cash Flow improved by $131 million to $(103) million in Q2 2019, compared to the prior year.
  • Common shares outstanding plus shares underlying stock-based awards totaled 1,553 million at June 30, 2019, compared with 1,479 million one year ago.
  • Revenue increased 48% to $388 million in Q2 2019, compared to the prior year.
  • Operating loss improved $53 million to $(305) million in Q2 2019, compared to the prior year.
  • Net loss improved $98 million to $(255) million in Q2 2019, compared to the prior year.
  • Adjusted EBITDA improved $90 million to $(79) million in Q2 2019, compared to the prior year.

The growth in our community, engagement, and revenue is the result of several transitions we completed over the past 18 months,” said Evan Spiegel, CEO. “We look forward to building on our momentum and making significant ongoing progress in each of these areas.”

 

 

Three Months Ended June 30,

 

Percent

 

Six Months Ended June 30,

 

Percent

 

 

2019

 

2018

 

Change

 

2019

 

2018

 

Change

 

(Unaudited)

(in thousands, except per share amounts)

Cash used in operating activities

$

(95,789

)

$

(199,346

)

(52

)%

$

(161,967

)

$

(431,327

)

(62)

%

Free Cash Flow

$

(103,422

)

$

(234,247

)

56

%

$

(181,414

)

$

(502,543

)

64

%

Common shares outstanding plus shares underlying stock-based awards

 

1,552,734

 

 

1,478,758

 

5

%

 

1,552,734

 

 

1,478,758

 

5

%

Operating loss

$

(304,818

)

$

(357,842

)

(15

)%

$

(620,879

)

$

(750,372

)

(17

)%

Revenue

$

388,021

 

$

262,263

 

48

%

$

708,447

 

$

492,929

 

44

%

Net loss

$

(255,174

)

$

(353,310

)

(28

)%

$

(565,581

)

$

(739,095

)

(23

)%

Adjusted EBITDA

$

(78,713

)

$

(169,032

)

53

%

$

(202,162

)

$

(386,897

)

48

%

Diluted net loss per share attributable to common shareholders

$

(0.19

)

$

(0.27

)

(31

)%

$

(0.42

)

$

(0.58

)

(28

)%

Non-GAAP diluted net loss per share

$

(0.06

)

$

(0.14

)

(56

)%

$

(0.16

)

$

(0.31

)

(49

)%

Q2 2019 Summary & Key Highlights

We added 13 million Daily Active Users in the second quarter and saw increased engagement across key metrics:

  • DAUs were 203 million in Q2 2019, compared to 190 million in Q1 2019 and 188 million in Q2 2018.
  • DAUs were up sequentially and year-over-year in each of North America, Europe, and Rest of World.
  • DAUs were up sequentially and year-over-year on each of iOS and Android platforms.
  • The average number of Snaps created every day grew to more than 3.5 billion in Q2 2019.

We are seeing early results from the improvements of our Android application:

  • On the majority of Android devices used by new users, Snapchatters are now sending 7% more Snaps when compared to the old version, which we believe is an important leading indicator of their long-term retention.
  • We saw more than a 10% increase in the retention rate of people who open Snapchat for the first time.

We continue to invest in our Discover platform, with a particular focus on building a sustainable premium content ecosystem:

  • Our audience watching content on Discover every day has grown over 35% year-over-year.
  • Total daily time spent by Snapchatters watching Discover increased by over 60% year-over-year.
  • Total daily time spent by Snapchatters watching Shows, our 3-5 minute premium episodes that are vertically shot and quickly paced, more than tripled compared to Q2 2018.
  • 90% of Snapchatters who completed the first season of “Endless Summer,” a Snap Original produced by Bunim/Murray Productions, went on to watch season two in its first month.

We continue to invest in our augmented reality platform:

  • We recently launched the next generation of AR Lenses that use deep neural networks to modify a person’s appearance in real-time, and over 200 million Snapchatters played with these new Lenses in the first two weeks.
  • The number of Snapchatters submitting new Lenses through Lens Studio every month grew by more than 20% from the prior quarter.
  • By the end of Q2 2019, over 500,000 Lenses had been created by our community through Lens Studio.
  • We saw more engagement with Lenses created by our community in Q2 2019 than the entirety of 2018.

We launched Snap Games in Q2 2019 to bring the fun of playing games with your friends to Snapchat and foster a scalable ecosystem that benefits users, developers, and Snap:

  • In the past four months, we have worked with our partners to release seven new made-for-Snapchat games for our community, including three games that allow users to play as their Bitmoji.

We continue to build on and improve Snap Kit, our set of developer tools that allow our partners to bring Snapchat features into their services:

  • We more than doubled the number of partner app integrations since the end of 2018.
  • 11 apps created by our partners are currently in the top 100 of the iOS App Store and Google Play Store.

We strengthened our platform capabilities to drive improved outcomes for advertisers:

  • We started testing our new Instant Create onboarding flow, which generates ads for businesses in three simple steps from their existing assets, be it their app or their ecommerce storefront.
  • We announced the launch of Snap Select, a new way for advertisers to run unskippable Commercials within a curated set of our Shows programming.

Financial Guidance

The following forward-looking statements reflect our expectations for the third quarter of 2019 as of July 23, 2019, and are subject to substantial uncertainty. This guidance assumes, among other things, that no business acquisitions, investments, restructurings, or legal settlements are concluded in the quarter. Our results are based on assumptions that we believe to be reasonable as of this date, but may be materially affected by many factors, as discussed below in “Forward-Looking Statements.”

Q3 2019 Outlook

  • Revenue is expected to be between $410 million and $435 million, compared to $298 million in Q3 2018.
  • Adjusted EBITDA is expected to be between $(85) million and $(60) million, compared to $(138) million in Q3 2018.

Conference Call Information

Snap Inc. will host a conference call to discuss the results at 2:00 p.m. Pacific / 5:00 p.m. Eastern today. The live audio webcast along with supplemental information will be accessible at investor.snap.com. A recording of the webcast will also be available following the conference call.

Snap Inc. uses the investor.snap.com and snap.com/news websites as means of disclosing material non-public information and for complying with its disclosure obligation under Regulation FD.

Definitions

Free Cash Flow is defined as net cash provided by (used in) operating activities, reduced by purchases of property and equipment.

Common shares outstanding plus shares underlying stock-based awards includes common shares outstanding, restricted stock units, restricted stock awards, and outstanding stock options.

Adjusted EBITDA is defined as net income (loss), excluding interest income; interest expense; other income (expense) net; income tax benefit (expense); depreciation and amortization; stock-based compensation expense and related payroll tax expense; and certain other non-cash or non-recurring items impacting net income (loss) from time to time.

A Daily Active User (DAU) is defined as a registered Snapchat user who opens the Snapchat application at least once during a defined 24-hour period. We calculate average DAUs for a particular quarter by adding the number of DAUs on each day of that quarter and dividing that sum by the number of days in that quarter.

Average revenue per user (ARPU) is defined as quarterly revenue divided by the average DAUs.

A Monthly Active User (MAU) is defined as a registered Snapchat user who opens the Snapchat application at least once during the 30-day period ending on the calendar month-end. We calculate average Monthly Active Users for a particular quarter by calculating the average of the MAUs as of each calendar month-end in that quarter.

Addressable reach is defined as the approximate number of Snapchat users that an ad could reach over a 28-day period in a given locality. When we calculate the percentage of a demographic group that can be reached, we do so by dividing addressable reach by relevant census figures. Addressable reach and age data are subject to limitations. For more information, see Snap’s SEC filings and businesshelp.snapchat.com.

Note: For adjustments and additional information regarding the non-GAAP financial measures and other items discussed, please see “Non-GAAP Financial Measures,” “Reconciliation of GAAP to Non-GAAP Financial Measures,” and “Supplemental Financial Information and Business Metrics.”

About Snap Inc.

Snap Inc. is a camera company. We believe that reinventing the camera represents our greatest opportunity to improve the way people live and communicate. We contribute to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together. For more information, visit snap.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release, including statements regarding guidance, our future results of operations or financial condition, business strategy and plans, user growth and engagement, product initiatives, and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “going to,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. We caution you that the foregoing may not include all of the forward-looking statements made in this press release.

You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this press release primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, and prospects. These forward-looking statements are subject to risks and uncertainties related to: our financial performance; our lack of profitability to date; our ability to generate and sustain positive cash flow; our ability to attract and retain users, publishers, and advertisers; competition and new market entrants; managing our international expansion and our growth and future expenses; compliance with new laws and regulations; our ability to maintain, protect, and enhance our intellectual property; our ability to attract and retain qualified and key personnel; and future acquisitions or investments, as well as risks, uncertainties, and other factors described in “Risk Factors” and elsewhere in our quarterly report on Form 10-Q for the quarter ended March 31, 2019 filed with the SEC, which is available on the SEC’s website at www.sec.gov. Additional information will be made available in Snap Inc.’s quarterly report on Form 10-Q for the quarter ended June 30, 2019 and other filings that we make from time to time with the SEC. In addition, any forward-looking statements contained in this press release are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use the non-GAAP financial measure of Free Cash Flow, which is defined as net cash provided by (used in) operating activities, reduced by purchases of property and equipment. We believe Free Cash Flow is an important liquidity measure of the cash that is available, after capital expenditures, for operational expenses and investment in our business and is a key financial indicator used by management. Additionally, we believe that Free Cash Flow is an important measure since we use third-party infrastructure partners to host our services and therefore we do not incur significant capital expenditures to support revenue generating activities. Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.

We use the non-GAAP financial measure of Adjusted EBITDA, which is defined as net income (loss); excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation and amortization; stock-based compensation expense and related payroll tax expense; and certain other non-cash or non-recurring items impacting net income (loss) from time to time. We believe that Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude in Adjusted EBITDA.

We use the non-GAAP financial measure of non-GAAP net loss, which is defined as net income (loss); excluding amortization of intangible assets; stock-based compensation expense and related payroll tax expense; certain other non-cash or non-recurring items impacting net income (loss) from time to time; and related income tax adjustments. Non-GAAP net loss and weighted average diluted shares are then used to calculate non-GAAP diluted net loss per share. Similar to Adjusted EBITDA, we believe these measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses we exclude in the measure.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to key metrics used by our management for financial and operational decision-making. We are presenting these non-GAAP measures to assist investors in seeing our financial performance through the eyes of management, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.

For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see “Reconciliation of GAAP to Non-GAAP Financial Measures.”

Snap Inc., “Snapchat,” and our other registered and common law trade names, trademarks, and service marks are the property of Snap Inc. or our subsidiaries.

 

SNAP INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2019

 

2018

 

2019

 

2018

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss

$

(255,174

)

$

(353,310

)

$

(565,581

)

$

(739,095

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

22,660

 

 

22,514

 

 

45,979

 

 

44,068

 

Stock-based compensation

 

195,574

 

 

156,371

 

 

358,130

 

 

289,630

 

Deferred income taxes

 

291

 

 

17

 

 

25

 

 

253

 

Other

 

(1,399

)

 

(5,893

)

 

(3,316

)

 

(9,287

)

Gain on divestiture

 

(39,883

)

 

 

 

(39,883

)

 

Change in operating assets and liabilities, net of effect of acquisitions:

 

 

 

 

 

 

 

 

Accounts receivable, net of allowance

 

(39,751

)

 

(13,926

)

 

32,119

 

 

34,771

 

Prepaid expenses and other current assets

 

(4,761

)

 

7,815

 

 

(4,490

)

 

(2,624

)

Operating lease right-of-use asset

 

11,809

 

 

 

 

21,621

 

 

Other assets

 

2,769

 

 

9,021

 

 

2,401

 

 

13,225

 

Accounts payable

 

21,009

 

 

(9,653

)

 

24,099

 

 

(46,722

)

Accrued expenses and other current liabilities

 

7,735

 

 

(19,356

)

 

(6,588

)

 

(29,505

)

Operating lease liabilities

 

(16,781

)

 

 

 

(27,251

)

 

Other liabilities

 

113

 

 

7,054

 

 

768

 

 

13,959

 

Net cash used in operating activities

 

(95,789

)

 

(199,346

)

 

(161,967

)

 

(431,327

)

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

(7,633

)

 

(34,901

)

 

(19,447

)

 

(71,216

)

Sales of property and equipment

 

 

 

 

 

29

 

 

Proceeds from divestiture, net

 

73,796

 

 

 

 

73,796

 

 

Non-marketable investments

 

(450

)

 

(21,010

)

 

(2,700

)

 

(21,010

)

Purchases of marketable securities

 

(283,520

)

 

(396,885

)

 

(809,040

)

 

(874,098

)

Sales of marketable securities

 

77,489

 

 

 

 

77,489

 

 

45,007

 

Maturities of marketable securities

 

324,033

 

 

578,509

 

 

782,660

 

 

1,366,337

 

Other

 

1,000

 

 

(2,505

)

 

1,000

 

 

(2,565

)

Net cash provided by investing activities

 

184,715

 

 

123,208

 

 

103,787

 

 

442,455

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from the exercise of stock options

 

1,342

 

 

1,914

 

 

6,938

 

 

47,723

 

Stock repurchases from employees for tax withholdings

 

 

 

 

 

 

 

(551

)

Net cash provided by financing activities

 

1,342

 

 

1,914

 

 

6,938

 

 

47,172

 

Change in cash, cash equivalents, and restricted cash

 

90,268

 

 

(74,224

)

 

(51,242

)

 

58,300

 

Cash, cash equivalents, and restricted cash, beginning of period

 

247,464

 

 

469,531

 

 

388,974

 

 

337,007

 

Cash, cash equivalents, and restricted cash, end of period

$

337,732

 

$

395,307

 

$

337,732

 

$

395,307

 

Supplemental disclosures

 

 

 

 

 

 

 

 

Cash paid for income taxes, net

$

(399

)

$

1,406

 

$

(79

)

$

2,397

 

SNAP INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts, unaudited)

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2019

 

2018

 

2019

 

2018

Revenue

$

388,021

 

$

262,263

 

$

708,447

 

$

492,929

 

Costs and expenses:

 

 

 

 

 

 

 

 

Cost of revenue

 

215,492

 

 

191,565

 

 

419,259

 

 

388,363

 

Research and development

 

236,199

 

 

203,246

 

 

452,384

 

 

404,232

 

Sales and marketing

 

111,504

 

 

101,685

 

 

209,386

 

 

203,798

 

General and administrative

 

129,644

 

 

123,609

 

 

248,297

 

 

246,908

 

Total costs and expenses

 

692,839

 

 

620,105

 

 

1,329,326

 

 

1,243,301

 

Operating loss

 

(304,818

)

 

(357,842

)

 

(620,879

)

 

(750,372

)

Interest income

 

7,446

 

 

6,600

 

 

15,262

 

 

12,704

 

Interest expense

 

(809

)

 

(930

)

 

(1,565

)

 

(1,864

)

Other income (expense), net

 

44,085

 

 

(61

)

 

42,958

 

 

3,092

 

Loss before income taxes

 

(254,096

)

 

(352,233

)

 

(564,224

)

 

(736,440

)

Income tax benefit (expense)

 

(1,078

)

 

(1,077

)

 

(1,357

)

 

(2,655

)

Net loss

$

(255,174

)

$

(353,310

)

$

(565,581

)

$

(739,095

)

Net loss per share attributable to Class A, Class B, and Class C common stockholders:

 

 

 

 

 

 

 

 

Basic

$

(0.19

)

$

(0.27

)

$

(0.42

)

$

(0.58

)

Diluted

$

(0.19

)

$

(0.27

)

$

(0.42

)

$

(0.58

)

Weighted average shares used in computation of net loss per share:

 

 

 

 

 

 

$

Basic

 

1,362,544

 

 

1,294,846

 

 

1,350,763

 

 

1,283,668

 

Diluted

 

1,362,544

 

 

1,294,846

 

 

1,350,763

 

 

1,283,668

 

SNAP INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except par value)

 

 

June 30,

2019

 

December 31,

2018

 

(unaudited)

 

 

 

Assets

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

$

335,744

 

 

$

387,149

 

Marketable securities

 

849,050

 

 

 

891,914

 

Accounts receivable, net of allowance

 

313,504

 

 

 

354,965

 

Prepaid expenses and other current assets

 

41,457

 

 

 

41,900

 

Total current assets

 

1,539,755

 

 

 

1,675,928

 

Property and equipment, net

 

185,440

 

 

 

212,560

 

Operating lease right-of-use assets

 

271,745

 

 

 

 

Intangible assets, net

 

79,811

 

 

 

126,054

 

Goodwill

 

628,474

 

 

 

632,370

 

Other assets

 

70,800

 

 

 

67,194

 

Total assets

$

2,776,025

 

 

$

2,714,106

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

$

51,902

 

 

$

30,876

 

Operating lease liabilities

 

47,100

 

 

 

 

Accrued expenses and other current liabilities

 

240,935

 

 

 

261,815

 

Total current liabilities

 

339,937

 

 

 

292,691

 

Operating lease liabilities, noncurrent

 

311,663

 

 

 

 

Other liabilities

 

7,727

 

 

 

110,416

 

Total liabilities

 

659,327

 

 

 

403,107

 

Commitments and contingencies

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

Class A non-voting common stock, $0.00001 par value. 3,000,000 shares

authorized, 999,304 shares issued and outstanding at December 31, 2018, and

3,000,000 shares authorized, 1,096,653 shares issued and outstanding

at June 30, 2019.

 

11

 

 

 

10

 

Class B voting common stock, $0.00001 par value. 700,000 shares authorized,

93,846 shares issued and outstanding at December 31, 2018, and 700,000 shares

authorized, 47,582 shares issued and outstanding at June 30, 2019.

 

 

 

 

1

 

Class C voting common stock, $0.00001 par value. 260,888 shares authorized,

224,611 shares issued and outstanding at December 31, 2018, and 260,888 shares

authorized, 227,914 shares issued and outstanding at June 30, 2019.

 

2

 

 

 

2

 

Additional paid-in capital

 

8,592,434

 

 

 

8,220,417

 

Accumulated other comprehensive income

 

2,102

 

 

 

3,147

 

Accumulated deficit

 

(6,477,851

)

 

 

(5,912,578

)

Total stockholders’ equity

 

2,116,698

 

 

 

2,310,999

 

Total liabilities and stockholders’ equity

$

2,776,025

 

 

$

2,714,106

 

SNAP INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(in thousands, unaudited)

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2019

 

2018

 

2019

 

2018

Free Cash Flow reconciliation:

 

 

 

 

 

 

 

 

 

 

 

Net cash used in operating activities

$

(95,789

)

 

$

(199,346

)

 

$

(161,967

)

 

$

(431,327

)

Less:

 

 

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

(7,633

)

 

 

(34,901

)

 

 

(19,447

)

 

 

(71,216

)

Free Cash Flow

$

(103,422

)

 

$

(234,247

)

 

$

(181,414

)

 

$

(502,543

)

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Adjusted EBITDA reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(255,174

)

 

$

(353,310

)

 

$

(565,581

)

 

$

(739,095

)

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

(7,446

)

 

 

(6,600

)

 

 

(15,262

)

 

 

(12,704

)

Interest expense

 

809

 

 

 

930

 

 

 

1,565

 

 

 

1,864

 

Other (income) expense, net

 

(44,085

)

 

 

61

 

 

 

(42,958

)

 

 

(3,092

)

Income tax (benefit) expense

 

1,078

 

 

 

1,077

 

 

 

1,357

 

 

 

2,655

 

Depreciation and amortization

 

22,660

 

 

 

22,514

 

 

 

45,979

 

 

 

44,068

 

Stock-based compensation expense

 

195,574

 

 

 

156,371

 

 

 

358,130

 

 

 

289,630

 

Payroll tax expense related to stock-based compensation

 

7,871

 

 

 

5,997

 

 

 

14,608

 

 

 

15,965

 

Reduction in force charges(1)

 

 

 

 

 

 

 

 

 

 

9,884

 

Lease exit charges(2)

 

 

 

 

3,928

 

 

 

 

 

 

3,928

 

Adjusted EBITDA

$

(78,713

)

 

$

(169,032

)

 

$

(202,162

)

 

$

(386,897

)

(1)

Reduction in force charges in the first quarter of 2018 were related to a reduction in force plan impacting approximately 7% of our then global headcount, primarily in engineering and sales. The charges are composed primarily of severance expense and related payroll tax expense. These charges are non-recurring and not reflective of underlying trends in our business. Additionally, we recognized a stock-based compensation forfeiture benefit of $31.5 million, which is included in the stock-based compensation expense line item above.

 

 

(2)

Lease exit charges were related to our exit of various operating leases prior to the end of the contractual lease term, primarily as a result of moving to a centralized corporate office located in Santa Monica, California. We recorded a lease exit charge of $3.9 million in the second quarter of 2018. The charge reflects the present value of our remaining lease obligation on the cease use dates that occurred during the quarter, net of sublease income. These charges are non-recurring and not reflective of underlying trends in our business.

Contacts

Investors and Analysts:

ir@snap.com

Press:

press@snap.com

Read full story here

error: Content is protected !!