#1Snap Inc. Q4 2020 Earnings Slides February 4, 2021#2Forward-Looking Statements & Non-GAAP Financial Measures This presentation contains forward-looking statements 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, and the impact of COVID-19 on our business and the economy as a whole, 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. You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this presentation on our current expectations and projections about future events and trends, including the ongoing COVID-19 pandemic, 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, including those described in the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent quarterly report on Form 10-Q filed with the SEC, which is available on the SEC's website at www.sec.gov. Additional information will be made available in our annual report on Form 10-K for the year ended December 31, 2020 and other filings that we make from time to time with the SEC. In addition, the forward-looking statements in this presentation relate only to events as of the date on which the statements are made and are based on information available to us as of the date of this presentation. 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, including future developments related to the COVID-19 pandemic, 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, mergers, dispositions, joint ventures, or investments. 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. 2#3Fourth Quarter Financial Highlights Revenue Operating Performance Cash ● Revenue increased 62% YoY to $911 million. ● ● ● Average revenue per user increased 33% YoY to $3.44. Adjusted gross margin¹ improved to 59%, compared to 56% in Q4 2019. Operating margin improved to (11) %, compared to (45)% in Q4 2019. Net loss was $(113) million, compared to $(241) million in Q4 2019. Adjusted EBITDA was $166 million, compared to $42 million in Q4 2019. Adjusted EBITDA margin² was 18%, compared to 8% in Q4 2019. Operating cash flow improved $14 million YoY to $(53) million. Free Cash Flow improved $7 million YoY to $(69) million. Ending cash and marketable securities increased $425 million YoY to $2.5 billion. ¹Excludes 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. 2We define Adjusted EBITDA margin as Adjusted EBITDA divided by GAAP revenue. See Appendix for reconciliation of net loss to Adjusted EBITDA. 3#4Business Highlights We saw increased engagement across key metrics: DAUS were 265 million in Q4 2020, an increase of 47 million, or 22%, year-over-year. DAUS increased sequentially and year-over-year in each of North America, Europe, and Rest of World. DAUS increased sequentially and year-over-year on both iOS and Android platforms. On average, Snapchatters opened Snapchat 30 times every day in Q4 2020. ● We continue to invest in our Discover platform as a destination for content that entertains and informs: Over 90% of the U.S. Gen Z population watched Shows and publisher content in Q4 2020. Total daily time spent by Snapchatters over the age of 35 engaging with Shows and publisher content increased by more than 30% year-over-year. Digital native creator of sports and lifestyle content Wave.tv reached an average monthly audience of 64 million Snapchatters. "Will From Home", our popular Snap Original featuring Will Smith, returned to Snapchat for its highly anticipated second season. We launched a record 97 new international Discover channels in Q4 2020. ● ● ● 4#5Business Highlights (Continued) We continue to invest in our camera and augmented reality platforms: Over 200 million daily active users engage with augmented reality every day on average. In December, we held our third annual augmented reality Lens Fest event celebrating our Lens Creator community and their AR creations, which attracted over 5,000 attendees joining virtually. ● ● ● We strengthened our ad platform to drive improved outcomes for advertisers: We partnered with NYX Professional Makeup, Ralph Lauren, Sweat, and The New York Times to launch augmented reality-powered advertising experiences. ● Our 'Cartoon' Lens powered by real time machine learning generated 1 billion impressions in its first three days after launch. We added the ability for Snapchatters using Scan to search food and wine labels, surfacing nutritional information and tasting notes in partnership with nutrition app Yuka and wine app Vivino. ● We released updates to Lens Studio, introducing new tools and workflows to better manage, create, and load Lenses, while adding capabilities for developers to build LiDAR-powered Lenses. We launched our first-ever 5G-enabled Landmarker Lens in partnership with Verizon. The Lens uses our augmented reality technology and Verizon's 5G Ultra Wideband capabilities to bring the soul band Black Pumas at the New York Public Library to life. We implemented a partnership with Perfect Corp to enable more than 200 beauty brands to upload their catalogs to the Snap Camera for augmented reality try-on. We added app install as a goal-based bidding objective for sponsored AR Lenses. We launched Snap Connect, an extension of our online learning portal Snap Focus that focuses specifically on direct response advertising. OnePlus (India) created Lenses for Diwali as a means to bring people together safely during a pandemic. Their Lenses garnered over 80 million impressions and reached over 14 million Snapchatters in India. LO 5#6Business Highlights (Continued) We continue to innovate to better serve our large and engaged community: We launched Spotlight, our newest platform surfacing the most entertaining Snaps from our community, and our early investments have helped Spotlight grow to over 100 million monthly active users in January. ● We launched our first Snap Kit integration with Twitter, enabling Snapchatters to easily share what's happening on Twitter over the Snapchat camera on iOS, with Android soon to come. We partnered with Unity to extend the reach of Unity's ads to Snapchat advertisers through the Snap Audience Network, as well as bring Snap technology to game developers through Snap Kit. We released Bitmoji Paint, our internally developed Snap game allowing Snapchatters to paint different pixelated canvases using their Bitmoji avatar along with other users around the world. 6#7Revenue by Geography (in millions, unaudited) GLOBAL $446 Q3'19 EUROPE 2 $69 Q3'19 $561 Q4'19 $92 Q4'19 $462 Q1'20 $76 Q1'20 +62% $454 Q2'20 +54% $79 Q2'20 $679 Q3'20 $102 Q3'20 $911 Q4'20 $142 Q4'20 NORTH AMERICA ¹ $316 Q3'19 $62 $382 REST OF WORLD Q3'19 Q4'19 $87 Q4'19 $316 Q1'20 $70 Q1'20 +73% $307 Q2'20 +27% $69 Q2'20 $493 Q4'20 REVENUE INCREASED 62% YOY TO $911 MILLION FISCAL YEAR 2020 REVENUE INCREASED 46% YOY TO $2.5 BILLION Q3'20 $83 Q3'20 Total revenue for geographic reporting 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 is consistent with how we determine ARPU. ¹North America includes Mexico, the Caribbean, and Central America. 2Europe includes Russia and Turkey. $659 Q4'20 $111 Q4'20 7#8Average Daily Active Users (DAU) (in millions, unaudited) GLOBAL 210 Q3'19 EUROPE 2 65 Q3'19 218 Q4'19 67 Q4'19 229 Q1'20 70 Q1'20 +22% 238 Q2'20 +10% 71 Q2'20 249 Q3'20 72 Q3'20 265 Q4'20 74 Q4'20 NORTH AMERICA ¹ 84 Q3'19 61 86 REST OF WORLD Q3'19 Q4'19 64 Q4'19 88 Q1'20 71 Q1'20 +6% GLOBAL DAU INCREASED 47 MILLION, OR 22% YoY 90 Q2'20 +55% 77 Q2'20 90 Q3'20 87 Q3'20 92 Q4'20 99 Q4'20 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 Daily Active Users 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. ¹North America includes Mexico, the Caribbean, and Central America. 2Europe includes Russia and Turkey. 8#9Average Revenue Per User (ARPU) (unaudited) GLOBAL $2.12 Q3'19 EUROPE 2 $1.05 Q3'19 $2.58 Q4'19 $1.37 Q4'19 $2.02 Q1'20 $1.09 Q1'20 +33% $1.91 Q2'20 +39% $1.10 Q2'20 $2.73 Q3'20 $1.43 Q3'20 $3.44 Q4'20 $1.91 Q4'20 NORTH AMERICA¹ $3.75 Q3'19 $1.01 $4.42 REST OF WORLD Q3'19 Q4'19 $1.35 Q4'19 $3.57 Q1'20 $1.00 Q1'20 +63% GLOBAL ARPU INCREASED 33% YOY NORTH AMERICA ARPU INCREASED 63% YOY $3.40 Q2'20 -18% $0.89 Q2'20 $5.49 Q3'20 $0.95 Q3'20 $7.19 Q4'20 $1.11 Q4'20 We define ARPU as quarterly revenue divided by the average Daily Active Users. 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. ¹North America includes Mexico, the Caribbean, and Central America. 2Europe includes Russia and Turkey. 9#10Adjusted Gross Margin¹ Adjusted Cost of Revenue¹ ADJUSTED COST OF REVENUE AS A % OF REVENUE 49% Q3'19 51% 44% Q4'19 56% 53% Q1'20 47% -3 PPT 53% Q2'20 47% 42% Q3'20 58% 41% Q4'20 59% COST OF REVENUE COMPOSITION (in millions, unaudited) Total Non-GAAP Exclusions¹ Total GAAP Cost of Revenue Infrastructure Cost Partner Arrangement Cost Other $217 $26 $45 $146 Q3'19 $6 $223 ¹Excludes 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. $247 $33 $58 $157 Q4'19 $6 $253 $246 $32 $50 $163 Q1'20 $7 $253 ADJUSTED GROSS MARGIN¹ IMPROVED 3 PPT YOY +53% $243 $27 $52 $163 Q2'20 $8 $250 $285 $36 $75 $174 Q3'20 $8 $293 $377 $48 $147 $182 Q4'20 $9 $386 10#11Adjusted Operating Expenses¹ ADJUSTED OPERATING EXPENSES AS A % OF REVENUE 61% Q3'19 48% Q4'19 64% Q1'20 -8 PPT 68% Q2'20 50% Q3'20 40% Q4'20 Total Non-GAAP Exclusions1 OPERATING EXPENSES COMPOSITION (in millions, unaudited) Research and Development Sales and Marketing General and Administrative $271 $83 $96 $92 Q3'19 $180 Total GAAP Operating Expenses ¹Excludes 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. Refer to Appendix for a description of non-recurring items, including securities class actions legal charges. $452 $271 $81 $96 $94 Q4'19 $290 $561 $298 $102 $93 $103 Q1'20 $198 $495 +36% $307 $87 $100 $120 Q2'20 $207 $514 ADJUSTED OPERATING EXPENSES AS A % OF REVENUE DECREASED 8 PPT YOY $338 $91 $111 $135 Q3'20 $216 $553 $369 $104 $124 $141 Q4'20 $254 $623 11#12Net Loss & Adjusted EBITDA¹ (dollars in millions, unaudited) NET LOSS Q3'19 (51)% $(227) Net Loss Margin Q4'19 (43)% $(241) Q1'20 (66)% $(306) Q2'20 (72)% $(326) Q3'20 (29)% $(200) Q4'20 (12)% $(113) Adjusted EBITDA Leverage³ ADJUSTED EBITDA Q3'19 (9)% $(42) 65% Adjusted EBITDA Margin² Q4'19 8% $42 54% Q1'20 (18)% $(81) 30% Q2'20 (21)% $(96) (25)% Q3'20 8% $56 42% ADJUSTED EBITDA WAS $166 MILLION IN Q4 2020, 2020 IS THE FIRST FULL YEAR OF ADJUSTED EBITDA PROFITABILITY AT $45 MILLION Q4'20 $166 18% 35% '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. 2 We define Adjusted EBITDA margin as Adjusted EBITDA divided by GAAP revenue. ³We define Adjusted EBITDA leverage as the year-over-year change in Adjusted EBITDA divided by the year-over-year change in GAAP revenue. 12#13Diluted Net Loss Per Share & Common Shares Outstanding Plus Shares Underlying Stock-Based Awards (in millions, except per share data, unaudited) DILUTED NET LOSS PER SHARE ¹ Q3'19 $(0.16) Q4'19 $(0.17) Q1'20 $(0.21) Q2'20 $(0.23) Q3'20 $(0.14) ¹Diluted net loss per share is calculated using weighted average shares outstanding during the period. 2Shares underlying stock-based awards include restricted stock units, restricted stock awards, and outstanding stock options. Q4'20 $(0.08) YOY Change COMMON SHARES OUTSTANDING PLUS SHARES UNDERLYING STOCK-BASED AWARDS Common Shares Outstanding Shares Underlying Stock-Based Awards² 1,565 176 1,389 Q3'19 6% 1,576 160 1,416 Q4'19 5% 1,589 149 1,440 Q1'20 DILUTED NET LOSS PER SHARE IMPROVED $0.09 YOY 3% 1,616 152 1,464 Q2'20 4% 1,624 139 1,485 Q3'20 4% 1,630 127 1,503 Q4'20 3% 13#14Operating Cash Flow and Free Cash Flow¹ (in millions, unaudited) FCF YOY Change Q3'19 $(76) $(8) $(84) 47% Q4'19 $(67) $(9) $(76) 49% Q1'20 $6 $(11) $(5) 94% Cash Provided by (Used in) Operating Activities Q2'20 $(67) $(16) $(82) 20% Numbers throughout presentation may not foot due to rounding. 'We define Free Cash Flow 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. Operating cash flow and free cash flow in Q4'20 includes a $98 million payment from non-recurring legal charges related to the securities class action in 2019. FREE CASH FLOW IMPROVED 9% YoY Q3'20 $(55) $(15) $(70) 17% Capital Expenditures Q4'20 $(53) $(16) $(69) 9% 14#15Financial Guidance The following forward-looking statements reflect our expectations for the first quarter of 2021 as of February 4, 2021, and are subject to substantial uncertainty. This guidance assumes constant foreign currency rates, and 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 in "Forward-Looking Statements & Non-GAAP Financial Measures." Q1 2021 Outlook Revenue is estimated to be between $720 million and $740 million, compared to $462 million in Q1 2020. • Adjusted EBITDA is estimated to be between $(70) and $(50) million, compared to $(81) million in Q1 2020. 15#16Appendix#17Non-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 $ $ $ $ September 30, 2019 (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 (66,842) $ (9,093) (75,935) $ December 31, 2019 (42,375) $ (240,704) $ (10,463) 14,775 (17,536) 332 20,620 166,655 8,628 100,000 42,307 $ Three Months Ended March 31, 2020 6,283 (10,891) (4,608) $ $ March 31, 2020 Three Months Ended (305,936) $ (8,589) 15,113 12,389 659 21,204 172,049 11,874 June 30, 2020 (81,237) $ (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) $ September 30, 2020 (54,828) $ (14,727) (69,555) $ September 30, 2020 (199,853) $ (2,801) 28,212 5,669 909 21,804 192,080 10,341 56,361 $ December 31, 2020 (52,545) (16,447) (68,992) December 31, 2020 (113,099) (1,969) 29,176 (29,471) 18,127 22,811 219,882 20,152 165,609 ¹We define Free Cash Flow as net cash provided by (used in) operating activities, reduced by purchases of property and equipment. 2We 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. 1#18Non-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 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 $ $ $ $ September 30, 2019 (227,375) $ 6,915 161,228 4,604 200 (54,428) $ 1,392,864 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 $ Three Months Ended March 31, 2020 (305,936) $ 7,980 172,049 11,873 (59) (114,093) $ 1,426,305 Three Months Ended March 31, 2020 June 30, 2020 (0.21) $ 0.13 (0.08) $ (325,951) $ 7,378 186,171 7,942 86 (124,374) $ 1,447,022 June 30, 2020 (0.23) $ 0.14 (0.09) $ September 30, 2020 (199,853) $ 8,422 192,080 10,341 388 11,378 $ 1,466,420 September 30, 2020 (0.14) $ 0.15 0.01 $ December 31, 2020 (113,099) 9,727 219,882 20,152 (511) 136,151 1,484,277 December 31, 2020 (0.08) 0.17 0.09 ¹ 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. 2#19Note 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 Daily Active Users 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. 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. 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 increase 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 address these technical issues and improve both our accuracy and precision, including ensuring 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 may exclude those users from our age demographics or 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. 3#20Note Regarding User Metrics and Other Data (Continued) 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 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. 4