#1Investor Presentation July 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. See https://businesshelp.snapchat.com/ for details. 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 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. Replay Smart Filters Stories Android Video Snaps Visual Communication Ephemeral Messaging Snapchat Launch 2011- 2013 Chat Geofilters Our Story Snapcash Community Filters Snap Ads 2014 Discover Story Explorer Snapcodes Friend Emojis Lenses Sponsored Geofilters Sponsored Lenses 2015 9 Years of Innovation 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 Music Lenses Happening Now Local Lenses Camera Kit Snap Minis SnapML Promote Local Place Places on Snap Map Action Bar Story Replies Lens Voice Scan Dynamic Lenses Bitmoji for Games Here For You Topics for Our Story 2020 5#6Snap Inc. Our Community On average 238M Daily Active Users 1. Snap Inc. internal data Q2 2019 vs. Q2 2020. See Snap Inc. public filings with the SEC. 2. Snap Inc. internal data Q2 2020. See Snap Inc. public filings with the SEC. 17% YoY Growth in Q2 2020 Spending 30+ minutes/day on average² 6#7Snap Inc. 1. High Penetration in Developed Markets We reach more than 80% of 13-24 year-olds and more than 60% of 13-34 year-olds in the U.K., France, Canada, and Australia' 90% of 13-24 year old U.S. population' Data from Snap Ads Manager Q2 2020. Percentages calculated by dividing addressable reach by relevant census figures. 75% of 13-34 year old U.S. population¹ 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. *7th St BRENTWOOD 26th St Q 14th St Ashley 1h Santa Monica Action Bar Our new Action Bar provides top-level navigation so Snapchatters can get to all of their favorite things in one tap Ocean Park My Bitmoji BRENTWOOD MAP Santa Monica +⁹ Wilshire Blvd TOP Rose Ave Diana M. 5m O WEST OS ANGELES SAWT WESTWOOD Santa Monica Municipal Airport Sheila P. 2m 187 REEF Palms Blvd WESTW MAR VISTA Alla Rd Friends CL GA a Sheila P. New Snap 2m 178 A Caroline A. Ashley A. New Snap-7m CHAT New Snap-2m-134 Tim W. ▷ Opened 21m Leo W. Brunch Club Received th Chat Received 1h-95 A Johnny O. Olivia S. Call Ended-1h Diana M. Received: 1h-83A Leila D. Received from Christie-2h Received Sh Brian F O +2 (9 B 18 CAMERA O a Friends Nikita 2h ago COMMUNITY Sheila P Ashley A. Subscriptions > For You Stories SNAP ORIGINAL LUCK The Hype (and Drip) Is Real AMERICA Andrew Yang Talks Basketball WAVE CHECK Tim W. +2 Leo W. HIGH SCHOOL Our Brain Cells Are Crying At These Today ADI Who W Up To MAKEUP DESTRUCTION This Might Do The Opposite Of Calm You DISCOVER Q Happening Now Sunday, May 24 Weather Local News Today's high is 44° with a low of 39º. Tap for your personalized forecast. Discover Discover Subscriptions Peop DRIVEN See Photos Of The Royal Baby From Every Adorable Angle Trending Now Entertainment Inside Chalet & Ronan's Movie Chemistry This Rapper Just Joined the Elite Lambo Club SNAR ORIGINAL Endless New City! NEw Season! New Dylan! Popular on Snapchat NO DAYS OFF SNAP ORIGINAL V/U/0 Ô ... SNAP ORIGIN MIN YOURS Schizophre Didn't Stop Dreams SNAP ORIGIN FRONT HEROE This Is More Than A Laundroma BIGDO 10#11Snap Inc. 1. Snap Map Our Snap Map connects our community to their best friends and to different places around the world We rolled out Places on the Snap Map, highlighting local places that are popular with our community. Over 200 Million Snapchatters use our Snap Map every month ¹ Snap Inc. internal data Q2 2020. See Snap Inc. public filings with the SEC. BRENTWOOD 17th St 26th S a 14th St Ashley 1h Santa Monica BRENTWOOD Ocean Park My Bitmoji MAP Santa Monica Wilshire Blvd VEN Diana M. 5m WEST LOS ANGELES SAWT WESTWOOD Santa Monica Municipal Airport TO Sheila P. 2m 187 Veteran Ave 209 Palms Blvd WESTW Ⓒ (0) MAR VISTA Friends CU Q Bulletproof Coffee Pacific Ave Navy Ct Ozone Ave Rose Cr enice Ale House PLACES Order Venice Rose PI N RO The Rose Venice Dudley Ct The Rose Venice $$-American Cusine 0000 530 reviews P 8.7 810 ratings Open Now 11am-8pm 220 Rose Ave, Venice, CA 90291 (310) 399-0711 rosecafevenice.com Directions t Nearby Community Snaps Café Gr La Isla Bonita Send 4th Ave Sy Gjusta 11#12Snap Inc. Having conversations with real friends is a fulfilling and frequent behavior. 60% of Snapchat's Daily Active Users create Snaps with our camera every day on average 1 30 app opens/day' 1 Next-Generation Communication 1. Snap Inc. internal data. Average for Daily Active Users Q2 2020. See Snap Inc. public filings with the SEC. SNAP 20:13 JACK ME Besties Heyyyyyy! Is anyone at the lake yet?? SEE YOU SOON LIZ CHAT JOHN Yep! Just got here! OMG is Daisy coming too??? Almost there JOHN SAVED At Burrows Road & Bayside Drive! JACK HOT DIGGLY O (JOHN JENNYPENNT DIANA ill Send a Chat ! JACK > DANIEL [9 You all JOHN Balls in your court! es GAMES 0 Send a Chat Mark D 20:13 Q MINIS headspace Just breathe 3 mins Mini Meditation. 20 people are listening to this Send a Chat ادر all? 12#13Snap Inc. 1. One of the Most-Used Cameras in the World Snap Inc. internal data Q2 2020. See Snap Inc. public filings with the SEC. Over 4 BILLION Snaps created every day on average 13#14Snap Inc. 1. High-frequency camera usage powers our AR platform. Over 180 Million DAUS engage with AR every day on average ¹ Snap Inc. internal data Q2 2020. See Snap Inc. public filings with the SEC. AR at Scale MACHINE LEARNING LENSES 9:41 X * Create VISUAL SEARCH 1 Scan Results Chow Chow 100% Match Scan DOG SCANNER Learn More loo Ⓒ Browse Explore LOCAL LENSES 14#15Snap Inc. AP ORIGINAL D GIRLS ETECTIVE AGENCY AP ORIGINAL MANDERS SNAP ORIGINAL Compton DREAMS SNAP ORIGINAL FIRST PERSON SNAP ORIGINAL SNAP ORIGINAL WHILE BLACK = WITH MK ASANTE SNAP ORIGINAL ROAD hippin SNAP ORIGINAL GOOD LUCK AMERICA with Peter Hamby SNAP ORIGINAL the Honeybeez of ASU SNAP ORIGINALS SNAP ORIGINAL WILL FROM HOME SNAP ORIGINAL WASH LAUNDROMA FRONTLINE HEROES SNAP ORIGINAL SNAP ORIGINAL PLAYERS SNAP ORIGINAL MINDYOURSELF SNAP ORIGINAL CONOR MCGREGOR VS THE WORLD SNAP ORIGINAL TWO SIDES SNAP ORIGINALS SNAP ORIGINAL NIKITA UNFILTERED SNAP ORIGINAL Endless High Quality, Award-Winning Content Made for Mobile SNAP ORIGINAL DRIVE COACH ΚΕΊ SNAP ORIGINAL LEGACY DRIVEN 15 SNAP ORIGIN DEAL NIGH SNAP ORIGIN DENTON DEATH D#16Snap Inc. A Large, Engaged, and Growing Content Audience NEW 1013 NBC NEWS MIRS UNIQUE REACH More than half of the United States Gen Z population watched COVID-related news on Discover.¹ 1. Snap Inc. internal data Q2 2020. We define Gen Z as ages 13-24. See Snap Inc.public filings with the SEC. 2. Snap Inc. internal data September 14, 2019 - October 13, 2019. 3. Snap Inc. internal data Q2 2020. SNAP ORIGINAL DEAD NIGHER DEEP ENGAGEMENT Over 70% of Snapchatters who completed Dead of Night, a zombie thriller, did so within 2 48 hours of starting it. SNAP ORIGINAL WILL FROM HOME LOYAL AUDIENCES Over 35 million Snapchatters watched Will Smith's Snap Original Will From Home, since its launch in April 2020.³ 16#17Snap Inc. Our Business#18Snap Inc. Louis Vuitton Cologne Perfumes Collection SUN SONG CACTUS GARDEN LITTER Creative Ad Formats That Deliver Results MORE SWIPE UP TO DISCOVER THE NEW COLOGNE PERFUMES AFTERNOON SWM SNAP ADS 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 18#19Snap Inc. 1. Kantar (Millward Brown) Resonance Study April 2020. COVERGIRL CLEAN FRESH Skin Milk COVERGIRL With Cotmest MS NEW CLEAN FRESH SKIN MILK 530 FAIR/LIGHT Dewy Finish Ad COVERGIRL BRAND BUILDING COVERGIRL Clean Fresh came to Snapchat to get in front of the hard-to-reach Gen Z and Millennial female audience. Their campaign leaned heavily into Premium Video, featuring Snap Select Commercials, Snap Ads and Filters. Of the total Snapchat reach, 62% was unique to Snap. The campaign drove a 9 point lift in Ad Awareness, and a lift in Purchase Intent that was 4.5x the Snap US CPG Norm. +9pt Lift in Ad Awareness ¹ 4.5x Norm for Lift in purchase intent 1 19#20Snap Inc. 1. Data from Snap Ads Manager January 1 - May 31, 2020 adidas X 19.1 Turf Boots £99.95 Shop Now Ad adidas DYNAMIC ADS In the wake of COVID-19, adidas accelerated its digital business in response to consumer demand. With ecommerce a key focus in 2020 and beyond, adidas was keen to reach new Gen Z and Millennial audiences, while driving significant ROAS. adidas Beta tested Snapchat's Dynamic Ads in the UK, Germany, and the Netherlands to create a new route to reach its target audiences with relevant product creative throughout the consumer journey. Within weeks adidas saw a 52% increase in Return on Ad Spend (ROAS) and has subsequently grown its investment, adding in the United States, Canada and MENA. +52% Growth in ROAS ¹ 20#21Snap 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 1 Q2 2019 to Q1 2020 21#22Snap Inc. 1. e.l.f. Cosmetics internal data. elf eyes.lips.face. why the Le.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 Q1 2020 vs. Q4 2019 1 22#23Snap Inc. Snap Ads Discover Snapcodes Sponsored Geofilters Sponsored Lenses 2011- 2015 OS/Carrier Targeting Ads API 3P Resonance Measurement Lookalikes On-Demand Geofilters Spectacles Group Chat 2016 Story Ads Lens Studio to Ads Manager GBB App Install GBB Video View Snap Pixel Audience Lenses & Filter Snap Publisher Ads Manager 2017 A Sophisticated Ad Platform 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 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 Brand Profiles ROAS Bidding Auction Forecasting Behavior Insights Trending on Snap Local Ads Snap Minis Place Listings Camera Kit Scan 2020 Demographic Targeting Psychographic Targeting Location Targeting Bulk CRUD Tools / Advanced Buy Flow Scalable Ads API Premium Content Targeting Advanced Delivery Options (e.g., GBBs) Audience and Delivery Insights Reach and Frequency ही 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. ▶ 23#24Snap 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% 24#25Snap Inc. Our Opportunity#26Snap Inc. DAU² 3. 195M 88M 33M Significant DAU and ARPU Opportunity $15 9 years old $64 NORTH AMERICA ¹ 14 years old ARPU ³ f 16 years old $186 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 Q1 2020 as compared to publicly reported Facebook and Twitter data for Q1 2020. 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 Q1 2020 as compared to publicly reported Facebook and Twitter data for Q1 2020. We define ARPU as quarterly revenue divided by the average Daily Active Users. Twitter's ARPU is 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. 26#27Snap Inc. Adj. EBITDA 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. 27#28Snap Inc. Community X Engagement X ↓ $ Free Cash Flow Monetization X له Capital Efficiency 28#29Snap Inc. 8 Grow Our Community Improved App Performance Drives Engagement & Retention Android rebuild improves performance in key International markets • Significant efficiency improvements across both iOS and Android Localization Efforts in More Markets • Local AR Lenses and Filters Local Discover Content ● Local language support Guten Morgen! Investing in Partnerships and Marketing • Carrier Partnerships - Verizon 5G • Partnerships with local content providers • Marketing to support Real Friends Amics de debò. latera amb modular a Botevé P 29#30Snap Inc. Increase Engagement Scale our Augmented Reality, Discover, Map, Games and Minis Platforms AUGMENTED REALITY 20:13 V Q Search For You Subscriptions Trending World Fu Dog clarabacou > all Abstract I Am Shook alijackson > jinniethewew. > HAR Good Viber Flowerz dadeko. > meredithb> I What's Inside Teeth Sparkle ben. DISCOVER Q Happening Now Sunday, May 24 Weather Local News Today's high is 44° with a low of 39º. Tap for your personalized forecast. DRIVEN Discover Discover Subscriptions Peop See Photos Of The Royal Baby From Every Adorable Angle Trending Now Entertainment Inside Chalet & Ronan's Movie Chemistry This Rapper Just Joined the Elite Lambo Club SNAR ORIGINAL Endless New City! NEw Season! New Dylan! Popular on Snapchat NO DAYS OFF O SNAP ORIGINAL VIUIS SNAP ORIGIN MIN] YOURS Schizophre Didn't Stop Dreams SNAP ORIGIN FRONT HEROE BIGDO Q Bulletproof Coffee Pacific Ave Navy Ct Ozone Ave Rose Ct 81 enice Ale House MAP Venice Order Rose PIN 5251 The Rose Venice Dudley Cr The Rose Venice SS-American Cusine 00000 530 reviews PB.7 810 ratings Open Now 11am-8pm 220 Rose Ave, Venice, CA 90291 (310) 399-0711 rosecafevenice.com Directions Nearby Community Snaps Café Gr La Isla Bonita Send 4th Ave Pep Gjusta 4th Ca Peter GAMES GENERALKNOWLEDGE What was the first name of famous Spanish painter Picasso? 10 PABLO DIEGO Send a Chat PEDRO SALVADOR X 20:13 MINIS headspace Just breathe 3 mins Mini Meditation 20 people are listening to this Send a Chat all 30#31Snap Inc. Monetize Our Audience We are focused on three key priorities to drive advertiser demand: 1. Improve ranking, optimization, and measurement to drive relevance and deliver ROI o Self-serve tools, lower-funnel optimizati goals, pixel purchase optimization, advanced delivery solutions 2. Build out our sales and marketing functions to support the needs of our advertising partners around the world o Dedicated teams to support our Enterprise, Emerging, Scaled Services, and Agency advertising partners 3. Deliver innovative ad experiences through video and augmented reality that drive real business value o Commercials, Dynamic Ads, Sponsored AR Lenses & Filters Our three priorities-along with our unique reach and growing, global audience-allow us to drive performance at scale for businesses around the world 31#32Snap Inc. q Scale Operations Efficiently Dual-cloud Infrastructure • Google Cloud Platform and Amazon Web Services partnerships allow us to scale efficiently without making capital investments in data centers We are constantly optimizing our cost structure by focusing on unit cost efficiencies of various services • These initiatives have allowed us to maintain roughly flat infrastructure costs per DAU while engagement has been increasing Operating Expense Discipline • We have been making focused investments in areas of the business that are highly productive, including investments in our talent base and marketing to grow our community and advertiser base • Our privacy by design product approach substantially reduces the cost of maintaining safety and privacy on our platform We will continue to focus on scaling our cost structure efficiently while making disciplined investments in the future of our business as we drive towards profitability and positive free cash flow 32#33Snap Inc. YoY FCF Growth FCF 2017 $(819) (21)% Free Cash Flow (in millions, unaudited) 2018 $(810) 1% 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. Source: Snap Inc. public filings. 2019 $(341) 58% 33#34Snap 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 34#35Snap 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, Minis, and more 35#36Snap Inc. Appendix#37Snap Inc. Non-GAAP Financial Measures Reconciliation (in thousands, unaudited) Free Cash Flow Reconciliation Net cash 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 Adjusted EBITDA² $ $ $ $ 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) $ June 30, 2019 (95,789) $ (7,633) (103,422) S June 30, 2019 (255,174) $ (7,446) 809 (44,085) 1,078 22,660 195,574 7,871 (78,713) S Three Months Ended September 30, 2019 (76,149) S (7,938) (84,087) $ Three Months Ended September 30, 2019 December 31, 2019 (227,375) $ (10,317) 8,654 1,481 (1,296) 20,646 161,228 4,604 (42,375) S (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) S March 31, 2020 (305,936) $ (8,589) 15,113 12,389 659 21,204 172,049 11,874 (81,237) S June 30, 2020 (66,554) (15,767) (82,321) June 30, 2020 (325,951) (4,768) 24,727 (3,575) (1,041) 20,925 186,171 7,942 (95,570) ¹We 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. These charges are non-recurring and not reflective of underlying trends in our business. 37#38Snap 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 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 $ $ $ $ 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) S June 30, 2019 (255,174) $ 9,048 195,574 7,871 (39,883) 376 (82,188) $ 1,362,544 June 30, 2019 (0.19) $ 0.13 (0.06) $ Three Months Ended September 30, 2019 (227,375) $ 6,915 161,228 4,604 - 200 (54,428) $ 1,392,864 Three Months Ended September 30, 2019 December 31, 2019 (0.16) $ 0.12 (0.04) S (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) S 0.13 (0.08) $ June 30, 2020 (325,951) 7,378 186,171 7,942 86 (124,374) 1,447,022 June 30, 2020 (0.23) 0.14 (0.09) *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 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. 38