#1Snap Inc. Q2 2023 Earnings Slides July 25, 2023#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, future stock repurchase programs or stock dividends, business strategy and plans, user growth and engagement, product initiatives, objectives of management for future operations, and advertiser and partner offerings 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, including our financial outlook, macroeconomic uncertainty, and geo-political conflicts, that we believe may continue to 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 elsewhere in our most recent periodic report filed with the SEC, which is available on the SEC's website at www.sec.gov. Additional information will be made available in our periodic report that will be filed with the SEC for the period covered by this presentation and other filings that we make from time to time with the SEC. In addition, any 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 geo-political conflicts and macroeconomic conditions, 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. 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#3Second Quarter Financial Summary Revenue Operating Performance Cash ● . ● Operating margin was (38) % in Q2 2023, compared to (36)% in Q2 2022. Adjusted gross margin² was 54% in Q2 2023, compared to 61% in Q2 2022. • Net loss was $377 million in Q2 2023, compared to $422 million in Q2 2022. • Adjusted EBITDA³ was $(38) million in Q2 2023, compared to $7 million in Q2 2022. • Adjusted EBITDA margin³ was (4)% in Q2 2023, compared to 1% in Q2 2022. ● ● ● Revenue was $1,068 million in Q2 2023, compared to $1,111 million in Q2 2022, a decrease of 4% year-over-year. On a constant currency basis¹ to account for changes in foreign exchange rates, the decrease was approximately 4% year-over-year. Average revenue per user was $2.69 in Q2 2023, compared to $3.20 in Q2 2022. ● Operating cash flow was $(82) million in Q2 2023, compared to $(124) million in Q2 2022. Free Cash Flow³ was $(119) million in Q2 2023, compared to $(147) million in Q2 2022. Cash, cash equivalents, and marketable securities were $3.7 billion as of June 30, 2023. 'Constant currency revenue is a non-GAAP measure, which we define as GAAP revenue in the current period translated using the prior period average monthly exchange rates for revenue transactions in currencies other than the U.S. dollar. The constant currency revenue percentage change is determined using current period constant currency revenue and prior period GAAP revenue. ²Adjusted gross margin is a non-GAAP measure, which we define as GAAP revenue less adjusted cost of revenue divided by GAAP revenue. Adjusted cost of revenue is a non-GAAP measure and excludes stock-based compensation expense, payroll and other tax expense related to stock-based compensation, depreciation and amortization, and certain other non-cash or non-recurring items impacting net income (loss) from time to time. ³Adjusted EBITDA margin s a non-GAAP measure, which we define as Adjusted EBITDA divided by GAAP revenue. See Appendix for non-GAAP measures of Adjusted EBITDA and Free Cash Flow, including reconciliations of net loss to Adjusted EBITDA and net cash provided by (used in) operating activities to Free Cash Flow. Quarterly information is unaudited. Numbers throughout presentation may not foot due to rounding. REVENUE WAS $1.07 BILLION IN Q2 2023 3#4Business Highlights We grew and deepened our engagement with our community: DAUS were 397 million in Q2 2023, an increase of 50 million, or 14% year-over-year. DAUS increased sequentially and year-over-year in each of North America, Europe, and Rest of World. • Total time spent watching Spotlight content more than tripled year-over-year, and Spotlight reached more than 400 million monthly active users on average in Q2, an increase of 51% year-over-year. ● Since launching My Al, our Al-powered chatbot, over 150 million people have sent over 10 billion messages, which we believe makes My Al among the largest consumer chatbots available today. • We introduced My Al Snaps for Snapchat+ subscribers, allowing subscribers to send Snaps to My Al and receive an Al-generated Snap back that keeps the conversation going. • We expanded our Stories revenue share program to more creators, helping more people build businesses on Snapchat and enabling them to create content for our community. • We onboarded new media partners and renewed agreements globally as we continue to grow our local content offering, including ITV in the UK, ProSieben in Germany, Network 18 in India, and ESPN in the Netherlands. 4#5Business Highlights (Continued) We are focused on accelerating and diversifying our revenue growth: We are seeing significant adoption of our new 7/0 Pixel Purchase optimization model, which contributed to a more than 40% quarter-over-quarter increase in 7/0 Pixel Purchase conversions. • The combination of improvements to our machine learning (ML) infrastructure and systems for ad ranking and optimization have led to more relevant ads and a more than 30% increase in purchase related conversions quarter-over-quarter. • We introduced our Event Quality Score system to advertisers to measure the quality and integrity of their data, which we expect will lead to improvement in attribution and advertiser performance. • We made fundamental improvements to our privacy-preserving identity graph and modeled conversions, which will strengthen the connection between identity, attribution, and optimization. Snapchat+, our subscription service that offers exclusive, experimental, and pre-release features, reached over 4 million paying subscribers in Q2, one year after launch. • We introduced new Snapchat+ features like app icons, custom themes, and Bitmoji pets & cars on the Snap Map. We launched ads in Spotlight for all advertisers globally, allowing brands to reach the Snapchat audience on our newest surface. . ● • We are testing My Al monetization with sponsored links that connect our community with partners relevant to their conversation in that moment, while helping brands reach Snapchatters who have indicated potential interest in their offerings. • We launched First Story, which enables advertisers to reserve the first video ad between Friend Stories, making First Story the latest offering in our takeover lineup, following First Commercial and First Lens. • We made it easier for brands and creators to work together with the US launch of the Snap Star Collab Studio for brands to source, partner, and drive results with Snap Stars. 5#6Business Highlights (Continued) We invested in our augmented reality platform: We launched Lens Performance Toolkit in Lens Studio, which offers developers a dashboard view of performance-related metrics for Lenses that are in development. • We introduced ML Retouch, our newest retouch feature powered by ML in Lens Studio, which enables Creators to easily switch on the feature for realistic skin retouch and accurate texture. • We announced a partnership with Roboflow that enables Lens Studio developers to utilize Roboflow's ML tools to easily train and bring models directly into SnapML. • We launched our first Snap AR Learn Hub, which includes AR courses to teach different AR development concepts in Lens Studio, along with a library of live streams and product tutorials. . ● We partnered with OPI, a beauty brand, on a Lens featuring first-of-its-kind Snap AR tech called Nails Segmentation, which makes the digital nail try-on experience more realistic than ever before. Snapchat and Disney came together in a groundbreaking collaboration at the 2023 Cannes Lions International Festival of Creativity that illustrated how Augmented Reality can enhance storytelling, and brought to life legendary characters and tales in celebration of Disney100. Snapchat's AR Studio in Paris teamed up with Daft Punk to celebrate the release of Random Access Memories 10th Anniversary Edition by bringing to life "Daft Punk: Memories Unlocked," a series of new augmented reality experiences for fans around the world. Camera Kit Live was launched to additional venues and music tours, including Duran Duran's successful arena tour, the Barclays Center in Brooklyn, New York, and the NBA draft. • We introduced new advanced Snapchat Lenses built by teams from the Snap AR community including Brick.it which used SnapML to integrate Brick.it's custom-built ML model, letting Snapchatters scan a pile of toy bricks, identify pieces, and suggest ideas for what can be built. • In honor of Juneteenth, Snap Lens Network developer, Andre Elijah Immersive, and Santa Monica History Museum collaborated to show the city's history in AR - bringing stories out of the museum and into the neighborhood. 6#7Average Daily Active Users (DAU) (in millions, unaudited) GLOBAL 332 Q1'22 EUROPE² 84 Q1'22 347 Q2'22 86 Q2'22 363 Q3'22 88 Q3'22 + 14% 375 Q4'22 + 9% 92 Q4'22 383 Q1'23 93 Q1'23 397 Q2'23 94 Q2'23 NORTH AMERICA¹ 98 Q1'22 REST OF WORLD 150 Q1'22 99 Q2'22 162 Q2'22 100 GLOBAL DAU INCREASED 50 MILLION, OR 14%, YOY Q3'22 175 Q3'22 + 2% 100 Q4'22 + 25% 183 Q4'22 100 Q1'23 190 Q1'23 101 Q2'23 202 Q2'23 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. 'North America includes Mexico, the Caribbean, and Central America. ²Europe includes Russia and Turkey. Numbers throughout presentation may not foot due to rounding. 7#8Revenue by Geography (in millions, unaudited) GLOBAL $1,063 Q1'22 EUROPE² $162 $1,111 Q2'22 $170 $1,128 Q3'22 $161 - 4% $1,300 Q4'22 + 7% $219 $989 Q1'23 $158 $1,068 Q2'23 $182 NORTH AMERICA¹ $758 Q1'22 $786 $142 Q2'22 REST OF WORLD $155 $812 Q3'22 $155 - 13% $880 Q4'22 + 28% $201 $640 Q1'23 $191 $687 GLOBAL REVENUE DECLINED 4% YOY ON AN ABSOLUTE AND CONSTANT CURRENCY BASIS³ IN Q2 2023 Q2'23 $199 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 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. 'North America includes Mexico, the Caribbean, and Central America. 2Europe includes Russia and Turkey. Effective March 2022, we halted advertising sales to Russian and Belarusian entities. ³Constant currency revenue is a non-GAAP measure, which we define as GAAP revenue in the current period translated using the prior period average monthly exchange rates for revenue transactions in currencies other than the U.S. dollar. The constant currency revenue percentage change is determined using current period constant currency revenue and prior period GAAP revenue. Numbers throughout presentation may not foot due to rounding. Q2'23 8#9Average Revenue Per User (ARPU) (unaudited) GLOBAL $3.20 Q1'22 EUROPE² $1.93 Q1'22 $3.20 Q2'22 $1.98 Q2'22 $3.11 Q3'22 $1.83 Q3'22 - 16% $3.47 Q4'22 - 2% $2.38 Q4'22 $2.58 Q1'23 $1.70 Q1'23 $2.69 Q2'23 $1.93 Q2'23 NORTH AMERICA¹ $7.77 Q1'22 $0.95 $7.93 REST OF WORLD Q1'22 Q2'22 $0.96 Q2'22 $8.13 Q3'22 $0.89 Q3'22 - 14% Q2 2023 GLOBAL ARPU WAS $2.69 Q2 2023 REST OF WORLD ARPU INCREASED 3% YoY TO $0.98 $8.77 Q4'22 + 3% $1.10 Q4'22 $6.37 Q1'23 $1.00 Q1'23 $6.83 Q2'23 $0.98 Q2'23 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. 'North America includes Mexico, the Caribbean, and Central America. ²Europe includes Russia and Turkey. Effective March 2022, we halted advertising sales to Russian and Belarusian entities. 9 Numbers throughout presentation may not foot due to rounding.#10Adjusted Gross Margin and Adjusted Cost of Revenue¹ (dollars in millions, unaudited) Adjusted Cost of Revenue as a % of Revenue ADJUSTED GROSS MARGIN¹ 61% Q1'22 39% 61% Q2'22 39% 61% Q3'22 39% - 7 PPT 64% Q4'22 36% 56% Q1'23 44% 54% Q2'23 46% Total Non-GAAP Exclusions Total GAAP Cost of Revenue ADJUSTED COST OF REVENUE¹ COMPOSITION Infrastructure Costs Content & Developer Partner Costs $413 $146 $73 $194 Q1'22 $8 $421 $438 $162 $76 $201 Q2'22 $8 $446 $446 $160 $74 $212 Q3'22 $21 $467 Advertising Partner & Other Costs + 12% $468 $176 $80 $212 Q4'22 $13 $481 $435 $141 $66 $228 Q1'23 $5 $440 INFRASTRUCTURE COSTS INCREASED 22% QOQ, DRIVEN PRIMARILY BY INVESTMENTS IN MACHINE LEARNING AND AI TO SUPPORT MONETIZATION, CONTENT ENGAGEMENT, AND AR $491 $142 $72 $277 Q2'23 $6 $497 'Adjusted gross margin is a non-GAAP measure, which we define as GAAP revenue less adjusted cost of revenue divided by GAAP revenue. Adjusted cost of revenue is a non-GAAP measure and excludes stock-based compensation expense, payroll and other tax expense related to stock-based compensation, depreciation and amortization, and certain other non-cash or non-recurring items impacting net income (loss) from time to time. In Q3 2022 and Q4 2022, non-recurring items included restructuring charges of $14 million and $7 million, respectively. See Appendix for further detail. Numbers throughout presentation may not foot due to rounding. 10#11Adjusted Operating Expense Margin and Adjusted Operating Expenses¹ (dollars in millions, unaudited) Adjusted Operating Expenses as a % of Revenue ADJUSTED OPERATING EXPENSE MARGIN¹ 45% Q1'22 55% 40% Q2'22 60% 46% Q3'22 54% + 2 PPT 54% Q4'22 46% 44% Q1'23 56% 42% Q2'23 58% Total Non-GAAP Exclusions Total GAAP Operati Expenses ADJUSTED OPERATING EXPENSES¹ COMPOSITION $586 $161 $189 $235 Q1'22 $328 $913 Research & Development General & Administrative $665 $199 $212 $255 Q2'22 $400 $1,065 $610 $174 $192 $244 Q3'22 $487 $1,097 - 8% $599 $151 Sales & Marketing $217 $231 Q4'22 $507 $1,106 $553 ADJUSTED OPERATING EXPENSES WERE $615 MILLION, DOWN $50 MILLION, OR 8% YoY $148 $206 $200 Q1'23 $361 $914 $615 $169 $215 $230 Q2'23 $360 $975 'Adjusted operating expense margin is a non-GAAP measure, which we define as GAAP revenue less adjusted operating expenses, divided by GAAP revenue. Adjusted operating expenses is a non-GAAP measure and excludes stock-based compensation expense, payroll and other tax expense related to stock- based compensation, depreciation and amortization, and certain other non-cash or non-recurring items impacting net income (loss) from time to time. In Q3 2022 and Q4 2022, non-recurring items included restructuring charges of $141 million and $27 million, respectively. See Appendix for further detail. Numbers throughout presentation may not foot due to rounding. 11#12Net Income (Loss) & Adjusted EBITDA¹ (dollars in millions, unaudited) NET INCOME (LOSS) (34)% $(360) Q1'22 Net Income (Loss) Margin (38)% $(422) Q2'22 (32)% $(360) Q3'22 (22)% $(288) Q4'22 (33)% $(329) Q1'23 (35)% $(377) Q2'23 ADJUSTED EBITDA¹ $64 6% Q1'22 Adjusted EBITDA Margin² $7 1% Q2'22 $73 ADJUSTED EBITDA WAS $(38) MILLION IN Q2 2023 6% Q3'22 $233 18% Q4'22 $1 0.1% Q1'23 (4)% $(38) Q2'23 'Adjusted EBITDA is a non-GAAP measure, which we define as net income (loss), excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation and amortization; stock-based compensation expense; payroll and other tax expense related to stock-based compensation; and certain other non-cash or non-recurring items impacting net income (loss) from time to time. In Q3 2022 and Q4 2022, non-recurring items included restructuring charges of $155 million and $34 million, respectively. See Appendix for reconciliation of net loss to Adjusted EBITDA. ²Adjusted EBITDA margin is a non-GAAP measure, which we define as Adjusted EBITDA divided by GAAP revenue. Numbers throughout presentation may not foot due to rounding. 12#13Diluted Net Income (Loss) Per Share & Common Shares Outstanding Plus Shares Underlying Stock-Based Awards (in millions, except per share data, unaudited) DILUTED NET INCOME (LOSS) PER SHARE¹ $(0.22) Q1'22 Total Non-GAAP Exclusions Non-GAAP diluted net income (loss) $(0.02) per share² $0.20 $(0.26) Q2'22 $0.24 $(0.22) Q3'22 $0.30 $0.08 $(0.18) Q4'22 $0.32 $0.14 $(0.21) Q1'23 $0.22 $0.01 $(0.24) Q2'23 $0.22 $(0.02) Shares repurchased YOY Change excluding exchange shares COMMON SHARES OUTSTANDING PLUS SHARES UNDERLYING STOCK-BASED AWARDS 1,708 75 1,633 Q1'22 1.3% Common Shares Outstanding Shares Underlying Stock-Based Awards³ 1,737 92 1,645 Q2'22 1,701 95 2.5% 1,606 Q3'22 51.3 1,706 132 0.2% 1,574 Q4'22 53.9 $(0.02) 'Diluted net income (loss) per share is calculated using weighted average shares outstanding during the period. 2We define Non-GAAP net income (loss) as net income (loss); excluding amortization of intangible assets; stock-based compensation expense; payroll and other tax expense related to stock-based compensation; certain other non-cash or non-recurring items impacting net income (loss) from time to time; and related income tax adjustments. Non-GAAP net income (loss) and weighted average diluted shares are then used to calculate Non-GAAP diluted net income (loss) per share. In Q3 2022 and Q4 2022, non-recurring items included restructuring charges of $155 million and $34 million, respectively. See Appendix for reconciliation of diluted net income (loss) per share to non-GAAP diluted net income (loss) per share. ³Shares underlying stock-based awards include restricted stock units, restricted stock awards, and outstanding stock options. ¹YOY change excludes approximately 52 million shares issued as part of the induced conversions of convertible notes in Q2 2021 and Q3 2021. Numbers throughout presentation may not foot due to rounding. 0.2% 1,723 128 CONTINUED RESPONSIBLE MANAGEMENT OF FULLY DILUTED SHARES OUTSTANDING 1,595 Q1'23 1,765 149 0.9% 1,616 Q2'23 1.6% 13#14Capex Operating Cash Flow and Free Cash Flow¹ (in millions, unaudited) OPERATING CASH FLOW $127 Q1'22 $(21) $(124) Q2'22 $(23) $56 Q3'22 $(38) $125 Q4'22 $(47) $151 Q1'23 $(48) $(82) Q2'23 $(37) YOY Change FREE CASH FLOW¹ $106 Q1'22 (16)% $(147) Q2'22 (27)% $18 Q3'22 (65)% $78 Q4'22 (51)% 'Free Cash Flow is a non-GAAP measure, which we define as net cash provided by (used in) operating activities, reduced by purchases of property and equipment. See Appendix for reconciliation of net cash provided by (used in) operating activities to Free Cash Flow. Numbers throughout presentation may not foot due to rounding. TRAILING TWELVE MONTHS FREE CASH FLOW WAS POSITIVE $81 MILLION IN Q2 2023 $103 Q1'23 (3)% $(119) Q2'23 19% 14#15Q3 Outlook As we enter Q3, we anticipate continued robust growth in our global community and, as a result, our financial guidance for Q3 is built on the assumption that DAU will reach 405 million to 406 million in Q3. From a revenue perspective, our business remains in a period of rapid transition as we work to improve our advertising platform, while forward visibility of advertising demand remains limited. Our guidance range for Q3 revenue reflects our best estimate of these factors, with total revenue estimated to be between $1,070 to $1,130 million implying negative 5% to flat year-over-year growth. At this level of revenue, we estimate that Adjusted EBITDA will be between negative $50 million and negative $100 million reflecting estimated infrastructure costs per DAU of $0.79 to $0.84 in Q3, as we continue to invest in ML, AI, and other infrastructure to improve the performance of our ad platform, drive deeper content engagement, and bring innovative product experiences to our community. This forecast also assumes modest sequential headcount growth as we continue to carefully calibrate our operating investments to focus on the inputs most essential to the acceleration of topline growth. 15#16Appendix#17Non-GAAP Financial Measures Reconciliation (in thousands, unaudited) Adjusted EBITDA Reconciliation Net income (loss) Add (deduct): Interest income Interest expense Other (income) expense, net Income tax (benefit) expense Depreciation and amortization Stock-based compensation expense Payroll and other tax expense related to stock-based compensation Restructuring charges¹ Adjusted EBITDA² Free Cash Flow Reconciliation Net cash provided by (used in) operating activities Less: Purchases of property and equipment Free Cash Flow³ $ $ $ $ March 31, 2022 (359,624) (3,123) 5,173 77,537 8,510 38,100 275,444 22,451 64,468 March 31, 2022 $ $ 127,459 $ (21,175) 106,284 $ June 30, 2022 (422,067) (8,331) 5,549 16,910 6,999 79,291 318,810 10,029 7,190 June 30, 2022 - Quarterly September 30, 2022 $ $ Three Months Ended December 31, 2022 (124,081) $ (23,370) (147,451) $ (359,502) $ (18,445) 5,425 (71,961) 9,241 34,068 312,690 6,561 154,563 72,640 $ September 30, 2022 55,945 $ (288,460) Three Months Ended December 31, 2022 (37,836) 18,109 $ (28,698) 5,312 20,043 4,206 34,975 446,339 5,172 34,386 233,275 125,291 $ $ $ (46,925) 78,366 $ March 31, 2023 (328,674) $ (37,948) 5,885 (11,372) 6,845 35,220 314,931 15,926 813 March 31, 2023 151,102 $ $ (47,630) 103,472 $ June 30, 2023 (377,308) (43,144) 5,343 (1,323) 12,093 39,688 317,943 8,229 (38,479) June 30, 2023 (81,936) (36,943) (118,879) 'Restructuring charges were composed primarily of severance and related charges of $91 million and $6 million in Q3 2022 and Q4 2022, respectively, stock-based compensation expense, lease exit and related charges, impairment charges, contract termination charges, and intangible asset amortization. These charges are non-recurring and not reflective of underlying trends in our business. 2Adjusted EBITDA is a non-GAAP measure, which we define as net income (loss), excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation and amortization; stock-based compensation expense; payroll and other tax expense related to stock-based compensation; and certain other non-cash or non-recurring items impacting net income (loss) from time to time. ³Free Cash Flow is a non-GAAP measure, which we define as net cash provided by (used in) operating activities, reduced by purchases of property and equipment. Numbers throughout presentation may not foot due to rounding. 1#18Non-GAAP Financial Measures Reconciliation (in thousands, unaudited) Non-GAAP net income (loss) reconciliation Net income (loss) Amortization of intangible assets Stock-based compensation expense Payroll and other tax expense related to stock-based compensation Restructuring charges¹ Income tax adjustments Non-GAAP net income (loss)² Weighted-average common shares - Diluted³ Non-GAAP diluted net income (loss) per share reconciliation GAAP diluted net income (loss) per share Non-GAAP adjustment to net income (loss) Non-GAAP diluted net income (loss) per share² $ $ $ $ March 31, 2022 (359,624) 22,505 275,444 22,451 (61) (39,285) 1,619,113 March 31, 2022 (0.22) 0.20 (0.02) $ $ $ $ June 30, 2022 (422,067) 64,134 318,810 10,029 1,632,140 - Quarterly June 30, 2022 (504) (29,598) $ September 30, 2022 $ Three Months Ended December 31, 2022 (0.26) 0.24 (0.02) $ $ (359,502) 18,701 312,690 6,561 154,563 (954) 132,059 1,608,523 September 30, 2022 $ $ (0.22) 0.30 0.08 $ (288,460) 18,073 446,339 Three Months Ended December 31, 2022 $ 5,172 34,386 (988) 214,522 1,573,883 (0.18) 0.32 0.14 $ $ $ $ March 31, 2023 (328,674) 17,755 314,931 15,926 32 19,970 1,581,370 March 31, 2023 $ $ (0.21) 0.22 0.01 $ $ June 30, 2023 (377,308) 18,405 317,943 8,229 (269) (33,000) 1,603,172 June 30, 2023 (0.24) 0.22 (0.02) 'Restructuring charges were composed primarily of severance and related charges of $91 million and $6 million in Q3 2022 and Q4 2022, respectively, stock-based compensation expense, lease exit and related charges, impairment charges, contract termination charges, and intangible asset amortization. These charges are non-recurring and not reflective of underlying trends in our business. 2We define Non-GAAP net income (loss) as net income (loss); excluding amortization of intangible assets; stock-based compensation expense; payroll and other tax expense related to stock-based compensation; certain other non-cash or non-recurring items impacting net income (loss) from time to time; and related income tax adjustments. Non-GAAP net income (loss) and weighted average diluted shares are then used to calculate Non-GAAP diluted net income (loss) per share. ³For all periods, weighted average common shares used in computation of diluted EPS primarily excluded unvested or unexercised stock-based awards, Convertible Notes, and Capped Call shares as they were anti-dilutive. Numbers throughout presentation may not foot due to rounding. 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 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. 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 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 technical issues 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 that 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) 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 becoming 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