#1Investor Presentation April 2020 Snap Inc.#2Snap Inc. Disclaimers Note Regarding User Metrics and Other Data We define a Daily Active User, or DAU, 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. DAUS are broken out by geography because markets have different characteristics. We define average revenue per user, or ARPU, as quarterly revenue divided by the average DAUS. For purposes of calculating ARPU, revenue by user geography is apportioned to each region based on our determination of the geographic location in which advertising impressions are delivered, as this approximates revenue based on user activity. This allocation differs from our components of revenue disclosure in the notes to our consolidated financial statements, where revenue is based on the billing address of the advertising customer. For information concerning these metrics as measured by us, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 filed with the U.S. Securities and Exchange Commission, or the SEC, which is available on the SEC's website at www.sec.gov. Unless otherwise stated, statistical information regarding our users and their activities is determined by calculating the daily average of the selected activity for the most recently completed quarter included in this presentation. While these metrics are determined based on what we believe to be reasonable estimates of our user base for the applicable period of measurement, there are inherent challenges in measuring how our products are used across large populations globally. For example, there may be individuals who have unauthorized or multiple Snapchat accounts, even though we forbid that in our Terms of Service and implement measures to detect and suppress that behavior. We have not determined the number of such multiple accounts. Changes in our products, infrastructure, mobile operating systems, or metric tracking system, or the introduction of new products, may impact our ability to accurately determine active users or other metrics and we may not determine such inaccuracies promptly. We also believe that we don't capture all data regarding each of our active users. Technical issues may result in data not being recorded from every user's application. For example, because some Snapchat features can be used without internet connectivity, we may not count a DAU because we don't receive timely notice that a user has opened the Snapchat application. This undercounting may grow as we grow in Rest of World markets where users may have poor connectivity. We do not adjust our reported metrics to reflect this underreporting. We believe that we have adequate controls to collect user metrics, however, there is no uniform industry standard. We continually seek to identify these technical issues and improve both our accuracy and precision, including ensuring that our investors and others can understand the factors impacting our business, but these and new issues may continue in the future, including if there continues to be no uniform industry standard. Some of our demographic data may be incomplete or inaccurate. For example, because users self-report their dates of birth, our age-demographic data may differ from our users' actual ages. And because users who signed up for Snapchat before June 2013 were not asked to supply their date of birth, we exclude those users and estimate their ages based on a sample of the self-reported ages we do have. If our active users provide us with incorrect or incomplete information regarding their age or other attributes, then our estimates may prove inaccurate and fail to meet investor expectations. In the past we have relied on third-party analytics providers to calculate our metrics, but today we rely primarily on our analytics platform that we developed and operate. We count a DAU only when a user opens the application and only once per user per day. We believe this methodology more accurately measures our user engagement. We have multiple pipelines of user data that we use to determine whether a user has opened the application during a particular day, and thus is a DAU. This provides redundancy in the event one pipeline of data were to become unavailable for technical reasons, and also gives us redundant data to help measure how users interact with our application. If we fail to maintain an effective analytics platform, our metrics calculations may be inaccurate. We regularly review, have adjusted in the past, and are likely in the future to adjust our processes for calculating our internal metrics to improve their accuracy. As a result of such adjustments, our DAUS or other metrics may not be comparable to those in prior periods. Our measures of DAUS may differ from estimates published by third parties or from similarly titled metrics of our competitors due to differences in methodology or data used. 2#3Snap Inc. Disclaimers Note Regarding Forward Looking Statements and use of Non-GAAP financials This presentation contains forward-looking statements within the meaning of Section 27A of 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 presentation, 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 presentation. You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this presentation 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, uncertainties, and other factors described in "Risk Factors" and elsewhere in our Quarterly Report on Form 10-Q, for the quarter ended March 31, 2020 filed with the SEC, which is available on the SEC's website at www.sec.gov., including among other things: our financial performance, including our revenues, cost of revenues, operating expenses, and our ability to attain and sustain profitability; our ability to generate and sustain positive cash flow; our ability to attract and retain users and publishers; our ability to attract and retain advertisers; our ability to compete effectively with existing competitors and new market entrants; our ability to effectively manage our growth and future expenses; our ability to comply with modified or new laws and regulations applying to our business; our ability to maintain, protect, and enhance our intellectual property; our ability to successfully expand in our existing market segments and penetrate new market segments; our ability to attract and retain qualified employees and key personnel; our ability to repay outstanding debt; future acquisitions of or investments in complementary companies, products, services, or technologies; and the potential adverse impact of the COVID-19 pandemic on our business, operations, and the markets and communities in which we and our partners, advertisers, and users operate. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this presentation or in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 filed with the SEC, which is available on the SEC's website at www.sec.gov. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements. In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of our most recent Quarterly Report on Form 10-Q. And while we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. The forward-looking statements made in this presentation or in our most recent Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this presentation to reflect events or circumstances after the date of this presentation or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, dispositions, joint ventures, restructurings, legal settlements, or investments. Investors and others should note that we may announce material business and financial information to our investors using our investor relations website (investor.snap.com), filings with the SEC, webcasts, press releases, and conference calls. We use these mediums, including Snapchat and our website, to communicate with our members and the public about our company, our products, and other issues. It is possible that the information that we make available may be deemed to be material information. We therefore encourage investors and others interested in our company to review the information that we make available on our website. This presentation includes certain non-GAAP financial measures. 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. A reconciliation of GAAP to non-GAAP measures is provided in the appendix of this presentation. 3#4Snap 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.#5Snap Inc. Visual Communication Ephemeral Messaging Snapchat Launch 2011 Android Video Snaps 2012 Replay Smart Filters Stories 2013 9 Years of Innovation Chat Geofilters Our Story Snapcash Community Filters Snap Ads 2014 Discover Story Explorer Snapcodes Friend Emojis Lenses Sponsored Geofilters Sponsored Lenses 2015 Voice + Video Calling 3D Stickers Stickers Face Swap Group Chat On-Demand Geofilters Music Recognition Memories Bitmoji Spectacles 2016 Voice Filters Snap Map World Lenses Custom Stories Lens Studio Context Cards Multi-Snap Snap Publisher Ads Manager Story Ads Snap Pixel 2017 Group Video Chat Snappables Lens Explorer Snap Kit Specs V2 Visual Search Snap Originals Snap Camera Friendship Profiles Commercials Reach & Frequency Collection Ads Product Catalogs 2018 Cameos Bitmoji TV Bitmoji Stories Deep Neural Network AR Dynamic Ads Lens Web Builder Swipe Up to Call Snap Select Android Rebuild Creator Profiles Landmarkers Snap Games Snap Audience Network Instant Create 2019 5#6Snap Inc. 1. 2. Our Community Snap Inc. internal data Q1 2019 vs. Q1 2020. See Snap Inc. public filings with the SEC. Snap Inc. internal data Q1 2020. See Snap Inc. public filings with the SEC. On average 229M Daily Active Users 20% YoY Growth in Q1 2020 Spending 30+ minutes/day on average² 6#7Snap Inc. High Penetration in Developed Markets We reach more 13-24 year-olds than Facebook or Instagram in the U.S., U.K., France, Canada, and Australia¹ 2. 90% of 13-24 year old U.S. population² That's more than Facebook, Instagram, and Messenger combined. ¹ 75% of 13-34 year old U.S. population ² 78M SNAPCHAT 75M INSTAGRAM U.S. 13-34 Reach ¹ 73M FACEBOOK 1. Based on estimated reach data from Snap Ads Manager and Facebook Ads Manager as of April 20, 2020. Snap and Facebook use different definitions and methodologies for estimating advertising reach on their respective platforms. Given the point-in-time data and differing methodologies, this comparison is illustrative and subject to change. Estimated advertising reach, location, and age data are subject to limitations. See https://businesshelp.snapchat.com/en-US/a/audience-size-tool and https://www.facebook.com/business/help/1665333080167380?id=176276233019487 for more details. Data from Snap Ads Manager as of April 20, 2020. Percentages calculated by dividing addressable reach by relevant census figures. Addressable reach, location, and age data are subject to limitations. See https://businesshelp.snapchat.com/en-US/a/audience-size-tool for details. 7#8Snap Inc. The Snapchat Generation Millennials The largest generation in U.S. history ¹ Expected to drive over half of the increase in expenditure growth over the next decade ² 2 1. Census Bureau. 2. Fundstrat, commissioned by Snap Inc. 2019. 3. Cassandra an Engine Company. Generational Spend Research Q1'19. Gen Z $323 billion in direct buying power and $1.2 trillion in indirect purchasing power 3 Still developing brand loyalty - attractive for advertisers who focus on lifetime value 3 Together, these generations have over $1 trillion in direct spending power ³ 8#9Snap Inc. Snapchat#10Snap Inc. 4:08 1 COMMUNICATION ELLIS I'll bring cheeseburgers! BURGER Time Pot Luck Club ME got that gumbo games on lock DAVID ELLIS I got cups! SUZY O WILL Y DAVID Send a chat ELLIS YUAN Ų Q [99 Three Core Platforms CAMERA Q Search Subscriptions CRAFT IT YOURSELF 7 Amazing Cement Ideas For You CONTENT SKAP ORIGINAL Hype SCHOOL Chat He Jumps HOW HIGH!? SCIESPO Is LeBron Who He Says He Is? Today the dodo HAIR ME OUT I Got A Kendall Jenner Inspired Haircut VICE " ADUL www Did I Just Screw Up My Taxe SNAP ORIGINAL RUNDOWN Becoming a Meme Can Ruin Your Life 3hr ago Stories 10#11Snap Inc. Next-Generation Communication Having conversations with real friends is a fulfilling and frequent behavior. Over 60% of Snapchat's Daily Active Users create Snaps with our camera 1 every day on average 30 app opens/day ¹ 1. Snap Inc. internal data. Average for Daily Active Users Q1 2020. See Snap Inc. public filings with the SEC. SNAP 10:53 1 ERIK Hey y'all, how's the road trip going?? ME VANNO D This desert stretch is ROUGH Ⓡ CHAT Travel Buds ERIK the last 4 hours has pretty much looked like this ERIK Omg be sure to hydrate! O VANNO Send a chat DAVID ! LTE ELLIS LAUREN GAMES BITMOJI PARTY Play BBBE Shop Send a chat ⓇX 11#12Snap Inc. 1. One of the Most-Used Cameras in the World Snap Inc. internal data Q1 2020. See Snap Inc. public filings with the SEC. Over 4 BILLION Snaps created every day on average 12#13Snap Inc. 1. High-frequency camera usage powers our AR platform. Over 75% of DAUS engage with AR every day on average ¹ Over 500 Million minutes of AR playtime 1 every day on average ¹ Snap Inc. internal data Q1 2020. See Snap Inc. public filings with the SEC. AR at Scale LENSES Q Search 9:411 VISUAL SEARCH Q Searching Chat Discover Friends LANDMARKERS Q Search GOT HBO Discover 13#14Snap Inc. HE BRAID JP AP ORIGINAL LE BLACK MY ASANTE SNAP ORIGINAL DEAD OF NIGHT SNAP ORIGINALS DENTON'S SNAP ORIGINAL Endless ΚΔΡΡΔ DEATH DATE CRYPTO SNAP ORIGINAL COMMANDERS GOOD LUCK FAMERICA with Peter Hamby SNAP ORIGINAL MIND YOURSELF SNAP ORIGINALS SNAP ORIGINAL Compton DREAMS SNAP ORIGINAL GROWING UP IS A DRAG SNAP ORIGINAL SNAP ORIGINAL PLAYERS SNAP ORIGINAL the Honeybeez of ASU SNAP ORIGINAL TEKASHI 69 VS THE WORLD 49 SNAP ORIGINAL TWO SIDES SNAP ORIGINALS NIKITA UNFILTERED SNAP ORIGINAL STRANDED MITH SAM AND COLBY High Quality, Award-Winning Content Made for Mobile STAY TUNED NBC NEWS A&E SECOND CHANCE M 14 SNAP ORIGIN save n TO COSM QUEEN#15Snap Inc. A Large, Engaged, and Growing Content Audience NEWS 1010100 NBC NEWS MIRS D UNIQUE REACH Snap Inc. internal data March 2020. More than half of the United States Gen Z population watches news 1 content on Discover. 1. Snap Inc. internal data Q1 2020. We define Gen Z as ages 13-24. See Snap Inc.public filings with the SEC. 2. Snap Inc. internal data Q1 2020. 3. STOP PLAYS DEEP ENGAGEMENT Over 60 Shows reached a monthly audience of over 10 million 2 viewers. NIKITA UNFILTERED LOYAL AUDIENCES Over 20 million Snapchatters have watched our new Snap Original Nikita Unfiltered, since its launch in March 2020.3 15#16Snap Inc. Our Business#17Snap Inc. Louis Vuitton Cologne Perfumes Collection SUN SONG Spis vimos CACTUS GARDEN LITTER Creative Ad Formats That Deliver Results MORE SWIPE UP TO DISCOVER THE NEW COLOGNE PERFUMES AFTERNOON SWM SNAP ADS Ad Q Search Is LeBron Who He Says He Is? Today v's ble Phone service that doesn't make you hate phone service. Sponsored the dodo Becoming a Meme Can Ruin Your Life 3hr ago 3 SNAP ORIGINAL ENEWS RUNDOWN The Next Big Thing Is Here 9hr ago REFINERY29 HAIR ME OUT STORY ADS COVERGIRL CLEAN MATTE AR LENSES #HOME TEAM CLAUDINE adidas FILTERS 17#18Snap Inc. 1. Measured by NCS Sales Effect 2018. 2. Nestle internal data. FRESH-BAKED STRAIGHT FROM YOUR OVEN (UNLIKE DELIVERY) DIGIORNO. Ad NESTLÉ NEW BUYERS Nestlé reached a new generation for DiGiorno Pizza through a mix of Snap Ads and Filters. One-third of incremental sales were driven by new buyers to the DiGiorno portfolio. 3.3% sales lift driven almost entirely by increased penetration. ¹ 3.6x Return on Ad Spend 2 18#19Snap Inc. 1. Kantar (Millward Brown) Resonance Study April 2019. GOT HBO Ad HBO BRAND BUILDING In order to capitalize on the excitement of the series finale of Game of Thrones, HBO partnered with Snapchat to give fans a way to experience and share in their enthusiasm with friends. This incredible execution led to new user acquisition for HBO Now and a 10 point lift in both brand favorability and recommendation intent. A concurrent HBO Now campaign implemented our Snap Pixel to help drive high quality conversions, making Snapchat one of HBO's most performant acquisition channels of 2019. +10pt 1 Lift in Brand favorability ¹ Extremely high for a well-known brand +10pt Lift in recommendation intent¹ 19#20Snap Inc. 1. Plarium internal data. RAID SHADOW LEGENDS SWIPE UP Ad Plarium GAMING Plarium's work with Snapchat is aimed at growing their penetration within the Gen Z and Millennial audiences, measured on profitability. They integrated with our API and developed a technology for accurately reaching potential players. Plarium heavily invested in the creative customization of their ads, focused on bidding with purchase optimization. Between Q2 2019 and Q1 2020, Plarium has grown its quarterly investment by 310 percent. Players coming from Snapchat are 30 percent better than Plarium's average in terms of 7-day retention rates. Also, these players have significantly higher intent than the average player to convert from the free version of the app to paying users. 30% Higher Day-7 Retention vs. Plarium's avg. players¹ 310% Growth in Investment from Q2 2019 to Q1 2020 ¹ 20#21Snap Inc. 1. e.l.f. Cosmetics internal data. elf eyes.lips.face. why the e.l.f. not? be extra without paying extra. SHOP NOW Ad e.l.f. Cosmetics ECOMMERCE CONVERSION e.l.f Cosmetics "e.l.f.ing Amazing Campaign" tapped into Snap's valuable millennial and Gen Z audience in order to efficiently gain share while working to continuously optimize awareness and brand building. +20% Site Visitation Q1 2020 vs. Q4 2019 1 +39% CPM Efficiency 1 Q1 2020 vs. Q4 2019 21#22Snap Inc. Snap Ads Discover Snapcodes Sponsored Geofilters Sponsored Lenses 2011- 2015 OS/Carrier Target Ads API 3P Resonance Measurement Lookalikes On-Demand Geofilters Spectacles Group Chat 2016 A Sophisticated Ad Platform Story Ads Lens Studio to Ads Manager GBB App Install GBB Video View Snap Pixel Audience Lenses & Filter Snap Publisher Ads Manager 2017 Commercials Delivery Insights Premium Content Targeting Advanced Location Targeting Conversion Lift Reach & Frequency AR in Self Serve Snappables Collection Ads GBB for conversions Product Catalogs 2018 Swipe To Call Lens Web Builder Dynamic Ads Target Cost Bidding Bulk Editing, Cloning, Uploading Snap Select Instant Create Snap Audience Network Logos in Scan Swipe up Commercials Direct to Ticketing Brand Marker Lens 2019 Demographic Targeting Psychographic Targeting Location Targeting Bulk CRUD Tools / Advanced Buy Flow Scalable Ads API Advanced Content Targeting & Transparency Advanced Delivery Options (e.g., GBBs) Audience and Delivery Insights Reach and Frequency ✩ Data from Snap Ads Manager as of April 20, 2020. Data from Facebook Ads Manager and official websites as of April 20, 2020. Data from Google Ads Manager and official websites as of April 20, 2020. Data from Twitter Ads Manager and official websites as of April 20, 2020. G 22#23Snap Inc. 1. 2. $0.59 2015 YOY ARPU Growth Strong Results Over Five Years Average Revenue Per User ¹ $2.71 2016 356% $4.65 2017 72% $6.29 2018 36% $8.29 2019 32% $59 2015 YOY Revenue Growth $404 2016 Total Revenue² (in millions) 590% $825 2017 104% See Snap Inc. public filings with the SEC. We define ARPU as quarterly revenue divided by the average Daily Active Users. ARPU is presented as annual ARPU, calculated as the sum of each reported quarterly ARPU. Snap Inc. internal data. $1,180 2018 43% $1,716 2019 45% 23#24Snap Inc. Our Opportunity#25Snap Inc. DAU² 3. 190M 86M 31M Significant DAU and ARPU Opportunity $14 9 years old $66 NORTH AMERICA ¹ 14 years old ARPU ³ f 16 years old $182 Comparison is illustrative as each Company calculates daily active users differently. 2. 1. Snap Inc. includes the U.S., Canada, Mexico, the Caribbean, and Central America. Facebook includes the U.S. and Canada only. Twitter includes the U.S. only. Snap Inc. internal data for Q4 2019 as compared to publicly reported Facebook and Twitter data for Q4 2019. We define a Daily Active User as a registered Snapchat user who opens the Snapchat application at least once during a defined 24-hour period. Twitter's monetizable Daily Active Users are shown and is defined by the Company as people, organizations, or other accounts who logged in or were otherwise authenticated and accessed Twitter on any given day through twitter.com or Twitter applications that are able to show ads. Facebook defines Daily Active Users based on user activity only on Facebook and Messenger and not on the Company's other products. Snap Inc. internal data for Q4 2019 as compared to publicly reported Facebook and Twitter data for Q4 2019. We define ARPU as quarterly revenue divided by the average Daily Active Users. Twitter's ARPU s calculated as quarterly revenue divided by the average monetizable Daily Active Users. Facebook's ARPU is calculated as quarterly revenue divided by the average Daily Active Users. ARPU is presented as annual ARPU, calculated as the sum of each reported quarterly ARPU. See Snap. Inc. public filings with the SEC. 25#26Snap Inc. Adj. EBITDA 2 Leverage per User ARPU Cost of Revenue per User ¹ 2017 Building a Path to Profitability Eight straight quarters of YoY improvement in Adjusted EBITDA and TTM average Adjusted EBITDA Leverage per User of 98%. (48)% ● OpEx per User 1 2018 64% 2019 $8.29 $5.12 $4.22 101% We define ARPU as quarterly revenue divided by the average Daily Active Users. Full year ARPU is the sum of the quarterly ARPUs. We define Adjusted EBITDA 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. See Appendix for reconciliation of net loss to Adjusted EBITDA. 1. Excludes stock-based compensation expense and related payroll tax expense, depreciation and amortization, and certain other non-cash or non-recurring items impacting net income (loss) from time to time. 2. We define Adjusted EBITDA leverage per user as the year-over-year change in Adjusted EBITDA per user divided by the year-over-year change in ARPU. Adjusted EBITDA per user is calculated as Adjusted EBITDA divided by the average Daily Active Users. Source: Snap Inc. public filings. 26#27Snap Inc. Community X Engagement X $ ↓ Free Cash Flow Monetization X له Capital Efficiency 27#28Snap Inc. YOY FCF Growth FCF Q1'18 $(268) (55)% Q2'18 $(234) (2)% Q3'18 $(159) 28% Free Cash Flow Q4'18 $(149) 25% (in millions, unaudited) Q1'19 $(78) 71% Q2'19 $(103) 56% Q3'19 $(84) 47% We define Free Cash Flow, or FCF, as net cash provided by (used in) operating activities reduced by purchases of property and equipment. See Appendix for reconciliation of net cash used in operating activities to Free Cash Flow. 1. FCF declined seasonally from Q1'19 to Q2'19 due to seasonally higher collections in Q1 following seasonally higher revenue in Q4'18. Source: Snap Inc. public filings. Q4'19 $(76) 49% Q1'20 $(5) 94% 28#29Snap Inc. Team Established an experienced leadership team for the next chapter in our growth 2019: Laying the Groundwork for Future Scale Android Rebuild Rebuilt our Android app to access new markets Scalable Ad Platform 000 Transitioned our advertising business to a scalable self-serve model Operating Efficiency Zi Balanced big investments with operating cost discipline 29#30Snap Inc. User Growth Expanding Demographics and Geographies 2020 and Beyond: Opportunities for Growth Revenue Increasing ARPU by Scaling Demand and ROI Investing in Innovation Augmented Reality, Premium Content, Gaming, Maps, and more 30#31Snap Inc. Appendix#32Snap Inc. Non-GAAP Financial Measures Reconciliation (in thousands, unaudited) Free Cash Flow Reconciliation Net cash provided by (used in) operating activities Less: Purchases of property and equipment Free Cash Flow¹ Adjusted EBITDA Reconciliation Net loss Add (deduct): Interest income Interest expense Other (income) expense, net Income tax (benefit) expense Depreciation and amortization Stock-based compensation expense Payroll tax expense related to stock-based compensation Securities class actions legal charges Lease exit charges Adjusted EBITDA² $ December 31, 2018 (126,054) $ (22,741) (148,795) $ December 31, 2018 (191,668) $ (7,513) 1,111 3,715 (352) 22,682 121,772 2,015 (2,125) (50,363) $ March 31, 2019 (66,178) $ (11,814) (77,992) S March 31, 2019 (310,407) $ (7,816) 756 1,127 279 23,319 162,556 6,737 (123,449) $ Three Months Ended June 30, 2019 (95,789) $ (7,633) (103,422) $ Three Months Ended June 30, 2019 (255,174) $ (7,446) 809 (44,085) 1,078 September 30, 2019 22,660 195,574 7,871 (78,713) $ (76,149) $ (7,938) (84,087) $ September 30, 2019 (227,375) $ (10,317) 8,654 1,481 (1,296) 20,646 161,228 4,604 December 31, 2019 (42,375) $ (66,842) $ (9,093) (75,935) $ December 31, 2019 (240,704) $ (10,463) 14,775 (17,536) 332 20,620 166,655 8,628 100,000 42,307 $ March 31, 2020 6,283 (10,891) (4,608) March 31, 2020 (305,936) (8,589) 15,113 12,389 659 21,204 172,049 11,874 (81,237) 'We define Free Cash Flow as net cash provided by (used in) operating activities, reduced by purchases of property and equipment. We define Adjusted EBITDA 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. Securities class actions legal charges related to a preliminary agreement to settle the securities class actions that arose following our IPO. Charges recorded are net of amounts directly covered by insurance. Lease exit charges were related to our exit of various operating leases prior to the end of the contractual lease term. The lease exit charges primarily include the present value of our remaining lease obligation on the cease use dates that occurred during the quarter, net of estimated sublease income. These charges are non-recurring and not reflective of underlying trends in our business. 32#33Snap Inc. Non-GAAP Financial Measures Reconciliation (Continued) (in thousands, except per share amounts, unaudited) Non-GAAP net income (loss) reconciliation Net loss Amortization of intangible assets Stock-based compensation expense Payroll tax expense related to stock-based compensation Securities class actions legal charges Gain on Divestiture Lease exit charges Income tax adjustments Non-GAAP net income (loss)¹ Weighted-average common shares - Diluted Non-GAAP diluted net income (loss) per share reconciliation GAAP diluted net loss per share Non-GAAP adjustment to net loss Non-GAAP diluted net income (loss) per share¹ $ $ $ December 31, 2018 $ (191,668) $ 10,441 121,772 2,015 (2,125) 84 (59,481) $ 1,324,858 December 31, 2018 (0.14) $ 0.10 (0.04) $ March 31, 2019 (310,407) $ 10,369 162,556 6,737 (115) (130,860) $ 1,340,615 March 31, 2019 (0.23) $ 0.13 (0.10) $ Three Months Ended June 30, 2019 (255,174) $ 9,048 195,574 7,871 (39,883) 376 (82,188) $ 1,362,544 September 30, 2019 Three Months Ended June 30, 2019 (227,375) $ 6,915 161,228 4,604 (0.19) $ 0.13 (0.06) $ 200 (54,428) $ 1,393,358 September 30, 2019 December 31, 2019 (0.16) $ 0.12 (0.04) $ (240,704) $ 7,067 166,655 8,628 100,000 289 41,935 $ 1,409,519 December 31, 2019 (0.17) $ 0.20 0.03 $ March 31, 2020 (305,936) 7,980 172,049 11,874 (59) (114,092) 1,426,305 March 31, 2020 (0.21) 0.13 (0.08) 'We define Non-GAAP Net income (loss) 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-recurring items include securities class actions legal charges and lease exit charges as described in the preceding slide. Non-GAAP Net Loss and weighted average diluted shares are then used to calculate Non-GAAP diluted net Income (loss) per share. 33