#1Snap Inc. Q1 2023 Earnings Slides April 27, 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 on our current expectations and projections about future events and trends, including our financial outlook, macroeconomic uncertainty, geo-political conflicts, and the COVID-19 pandemic, 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, the COVID-19 pandemic, 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#3First Quarter Financial Summary Revenue Operating Performance Cash ● . ● Operating margin was (37) % in Q1 2023, compared to (26) % in Q1 2022. Adjusted gross margin² was 56% in Q1 2023, compared to 61% in Q1 2022. • Net loss was $329 million in Q1 2023, compared to $360 million in Q1 2022. • Adjusted EBITDA³ was $1 million in Q1 2023, compared to $64 million in Q1 2022. • Adjusted EBITDA margin³ was 0.1% in Q1 2023, compared to 6% in Q1 2022. ● ● ● Revenue was $989 million in Q1 2023, compared to $1,063 million in Q1 2022, a decrease of 7% year-over-year. On a constant currency basis to account for changes in foreign exchange rates, the decrease was approximately 6% year-over-year. Average revenue per user was $2.58 in Q1 2023, compared to $3.20 in Q1 2022. ● Operating cash flow was $151 million in Q1 2023, compared to $127 million in Q1 2022. Free Cash Flow³ was $103 million in Q1 2023, compared to $106 million in Q1 2022. Cash, cash equivalents, and marketable securities were $4.1 billion as of March 31, 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. FREE CASH FLOW WAS $103 MILLION IN Q1 2023 3#4Business Highlights We grew and deepened our engagement with our community: DAUS were 383 million in Q1 2023, an increase of 51 million, or 15% 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 grew more than 170% year-over-year, and Spotlight reached more than 350 million monthly active users on average in Q1, representing an increase of 46% year-over-year. • We launched My Al, a new Al-powered chatbot to make conversational artificial intelligence useful and enjoyable for our community, and surface the best of Snapchat to our community, including relevant AR Lenses and recommendations from the Snap Map. • We introduced 3D to the Snap Map to highlight Places and make the Map more personal, fun, and engaging. • We introduced our new Content Controls feature in Family Center that allows parents to filter the types of content their teens can watch on Snapchat. We announced new safeguards to My Al, including a new age signal and time out functionality. • We launched two new Sounds creative tools to make it easier to discover and share music - Sounds Recommendations for Lenses and Sounds Sync for Camera Roll. 4#5Business Highlights (Continued) We are focused on expanding and diversifying our revenue growth: We simplified Ads Manager create workflows, improved ad management experiences on mobile, redesigned the creative library and simplified our payments onboarding experiences. • We transitioned to a new ad format for Snapchatters that aligned ad design with content design, which is an important input toward a consistent and unified content and advertising interaction experience across Spotlight and Stories. . Apparel company Courir saw a 24% decrease in cost per purchase within Ads Manager and a 43% increase in ROAS reported in Google Analytics after implementing the 7/0 Pixel Purchase optimization model. Snapchat+, our subscription service that offers exclusive, experimental, and pre-release features, reached over 3 million paying subscribers in Q1. We launched Generative Al Backgrounds, an exclusive Snapchat+ feature that allows Snapchatters to generate fun backgrounds for their profiles using free- form text prompts. • We launched AR Enterprise Services (ARES), our new SaaS business, bringing our world-class AR technology suite beyond Snapchat, and into customers' owned-and-operated apps and websites; early customers include Goodr, Princess Polly, and Gobi Cashmere. . Goodr leveraged our AR Try-On to replicate the experience of in-store shopping on customers' mobile devices, and saw an 81% uplift in add-to-cart and a 67% uplift in conversion for mobile device users, leading to a 59% increase in revenue per shopper. Princess Polly incorporated our fit & sizing technology Fit Finder for recommendations and our AR Image Try-On feature to deliver over 50 million recommendations and saw a 24% lower product return rate when shoppers used the technology. • Gobi Cashmere's shoppers using Fit Finder for recommendations and AR Try-On for clothing features were 4x as likely to convert. 5#6Business Highlights (Continued) We invested in our augmented reality platform: Ray Tracing, which enables photorealistic quality on digital objects, is now available in Lens Studio to developers around the world. • We introduced support for Version Control for project collaboration in Lens Studio, enabling developers to collaborate simultaneously on new or existing Lens Studio projects while maintaining the integrity of their source code. ● • We introduced Portrait Relighting, which gives developers the ability to enhance or change the light and background of photos, as well as add their own custom lighting to photos. ● Lens Studio's start screen now has a dedicated Learn Tab that offers educational materials like videos and guides to help developers learn how to build Lenses. Powered by Camera Kit, Microsoft Teams brought Snapchat Lenses right into video meetings to help colleagues communicate and collaborate as they discuss projects. • We announced a new integration with Disguise, an industry leader in live event visualization technology, that will bring Snap AR to the world's largest venues and tours. • • We partnered with the NFL to create a 3D model of the State Farm Stadium so fans on the NFL app could see what it's like inside the official Super Bowl LVII stadium, and a Snapchat Lens of the stadium allowed them to keep up with the game in real time through AR. We partnered with British Vogue for an immersive experience through Vogue x Snapchat: Redefining the Body, which allowed visitors to enter the worlds of renowned designers and try on iconic digital designs from Dior, Kenneth Ize, Richard Quinn, Stella McCartney, Thebe Magugu, and Versace. Our AR Studio in Paris created a unique AR experience for International Women's Day by installing eight AR statues of important female figures in French history across eight French cities. 6#7Average Daily Active Users (DAU) (in millions, unaudited) GLOBAL 319 Q4'21 EUROPE² 82 332 Q1'22 84 347 Q1'22 Q2'22 86 + 15% Q2'22 363 Q3'22 + 10% 88 375 Q3'22 Q4'22 92 383 Q4'22 Q1'23 93 NORTH AMERICA¹ 97 Q4'21 REST OF WORLD 140 98 Q1'22 Q4'21 150 Q1'22 99 GLOBAL DAU INCREASED 51 MILLION, OR 15%, YOY Q2'22 162 + 3% Q2'22 100 Q3'22 + 27% Q1'23 Q4'21 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. 175 100 Q3'22 Q4'22 183 100 Q4'22 Q1'23 190 Q1'23 7#8Revenue by Geography (in millions, unaudited) GLOBAL $1,298 Q4'21 EUROPE² $209 $1,063 Q1'22 $162 $1,111 Q2'22 $170 -7% $1,128 Q3'22 - 3% $161 $1,300 Q4'22 $219 $989 Q1'23 $158 NORTH AMERICA¹ $932 Q4'21 $758 $157 Q1'22 REST OF WORLD $142 $786 Q2'22 $155 -16% $812 Q3'22 + 34% $155 $880 Q4'22 $201 $640 Q1 2023 REVENUE WAS $989 MILLION; ON A CONSTANT CURRENCY BASIS³, APPROXIMATELY 6% DECLINE YOY Q1'23 $191 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q4'21 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. Q1'23 8#9Average Revenue Per User (ARPU) (unaudited) GLOBAL $4.06 Q4'21 EUROPE² $2.54 Q4'21 $3.20 Q1'22 $1.93 Q1'22 $3.20 Q2'22 $1.98 Q2'22 - 19% $3.11 Q3'22 - 12% $1.83 Q3'22 $3.47 Q4'22 $2.38 Q4'22 $2.58 Q1'23 $1.70 Q1'23 NORTH AMERICA¹ $9.58 Q4'21 $1.12 $7.77 REST OF WORLD Q4'21 Q1'22 $0.95 Q1'22 $7.93 Q2'22 $0.96 Q2'22 - 18% Q1 2023 GLOBAL ARPU WAS $2.58 Q1 2023 REST OF WORLD ARPU INCREASED 6% YoY TO $1.00 $8.13 Q3'22 + 6% $0.89 Q3'22 $8.77 Q4'22 $1.10 Q4'22 $6.37 Q1'23 $1.00 Q1'23 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 66% Q4'21 34% 61% Q1'22 39% 61% Q2'22 39% - 5 PPT 61% Q3'22 9% 64% Q4'22 36% 56% Q1'23 44% Total Non-GAAP Exclusions Total GAAP Cost of Revenue ADJUSTED COST OF REVENUE¹ COMPOSITION Infrastructure Costs Content & Developer Partner Costs $442 $143 $87 $212 Q4'21 $8 $449 $413 $146 $73 $194 Q1'22 $8 $421 $438 $162 $76 $201 Q2'22 $8 $446 Advertising Partner & Other Costs + 5% $446 $160 $74 $212 Q3'22 $21 $467 $468 $176 $80 $212 Q4'22 CONTENT & DEVELOPER PARTNER COSTS DOWN $21 MILLION FROM Q2 2022, IN LINE WITH $50 MILLION REDUCTION IN ANNUALIZED FIXED CONTENT COSTS ANNOUNCED IN Q3 2022 $13 $481 $435 $141 $66 $228 Q1'23 $5 $440 '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 59% Q4'21 41% 45% Q1'22 55% 40% Q2'22 60% - 1 PPT 46% Q3'22 54% 54% Q4'22 46% 44% Q1'23 56% Total Non-GAAP Exclusions Total GAAP Operating Expenses ADJUSTED OPERATING EXPENSES¹ COMPOSITION $530 $141 $189 $199 Q4'21 $344 $874 Research & Development General & Administrative $586 $161 $189 $235 Q1'22 $328 $913 $665 $199 $212 $255 Q2'22 $400 $1,065 - 6% $610 $174 Sales & Marketing $192 $244 Q3'22 $487 $1,097 $599 $151 $217 $231 Q4'22 $507 $1,106 $553 ADJUSTED OPERATING EXPENSES DOWN $112 MILLION FROM Q2 2022, IN LINE WITH $450 MILLION REDUCTION IN ANNUALIZED ADJUSTED OPERATING EXPENSES ANNOUNCED IN Q3 2022 $148 $206 $200 Q1'23 $361 $914 '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) $23 2% Q4'21 Net Income (Loss) Margin (34)% $(360) Q1'22 (38)% $(422) Q2'22 (32)% $(360) Q3'22 (22)% $(288) Q4'22 (33)% $(329) Q1'23 ADJUSTED EBITDA¹ $327 25% Q4'21 Adjusted EBITDA Margin² $64 6% Q1'22 $7 1% Q2'22 $73 8 CONSECUTIVE QUARTERS OF POSITIVE ADJUSTED EBITDA 6% Q3'22 $233 18% Q4'22 $1 0.1% Q1'23 '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 $0.01 Q4'21 $(0.22) $0.21 Q1'22 $(0.26) $0.20 Q2'22 $0.24 $(0.22) $(0.02 Q3'22 $0.30 $(0.18) $0.08 Q4'22 $0.32 $(0.21) $0.14 Q1'23 $0.22 $0.01 Shares repurchased COMMON SHARES OUTSTANDING PLUS SHARES UNDERLYING STOCK-BASED AWARDS YOY Change excluding exchange shares 1,702 83 1,619 Q4'21 Common Shares Outstanding Shares Underlying Stock-Based Awards³ 1.2% 1,708 75 1,633 Q1'22 Total Non-GAAP Exclusions Non-GAAP diluted $(0.02) net income (loss) $0.22 per share² 'Diluted net income (loss) per share is calculated using weighted average shares outstanding during the period. Diluted net income per share in Q4 2021 includes 64 million shares in excess of weighted average shares outstanding during the period primarily related to unvested or unexercised stock-based awards. 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 and Q3 2021 Numbers throughout presentation may not foot due to rounding. 1,737 92 1.3% 1,645 Q2'22 1,701 95 2.5% 1,606 Q3'22 51.3 0.2% 1,706 132 CONTINUED RESPONSIBLE MANAGEMENT OF FULLY DILUTED SHARES OUTSTANDING 1,574 Q4'22 53.9 1,723 128 0.2% 1,595 Q1'23 0.9% 13#14Capex Operating Cash Flow and Free Cash Flow¹ (in millions, unaudited) OPERATING CASH FLOW $186 Q4'21 $(25) $127 Q1'22 $(21) $(124) Q2'22 $(23) $56 Q3'22 $(38) $125 Q4'22 $(47) $151 Q1'23 $(48) YOY Change FREE CASH FLOW¹ $161 Q4'21 333% $106 Q1'22 (16)% $(147) Q2'22 (27)% $18 Q3'22 (65)% '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. FREE CASH FLOW WAS $103 MILLION IN Q1 2023 TRAILING TWELVE MONTHS FREE CASH FLOW WAS POSITIVE $52 MILLION IN Q1 2023 $78 Q4'22 (51)% $103 Q1'23 (3)% 14#15Financial Guidance We are not providing formal guidance for revenue or adjusted EBITDA for the second quarter of 2023. 15#16Appendix#17Non-GAAP Financial Measures Reconciliation - - Quarterly (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 $ $ $ $ December 31, 2021 22,550 (1,554) 4,050 (63,204) 13,031 34,863 297,564 19,493 326,793 December 31, 2021 185,528 (24,565) 160,963 $ $ $ $ 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 $ Three Months Ended September 30, 2022 June 30, 2022 (422,067) $ (8,331) 5,549 16,910 6,999 79,291 318,810 10,029 7,190 $ Three Months Ended June 30, 2022 (124,081) $ (359,502) (23,370) (147,451) $ (18,445) 5,425 (71,961) 9,241 34,068 312,690 September 30, 2022 6,561 154,563 72,640 55,945 (37,836) 18,109 $ $ $ $ December 31, 2022 (288,460) (28,698) 5,312 20,043 4,206 34,975 446,339 5,172 34,386 233,275 December 31, 2022 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 '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 - - Quarterly (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 $ $ $ $ December 31, 2021 22,550 20,228 297,564 19,493 (374) 359,461 1,668,879 December 31, 2021 0.01 0.21 0.22 $ $ $ $ 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) $ $ $ $ Three Months Ended September 30, 2022 June 30, 2022 (422,067) 64,134 318,810 10,029 (504) (29,598) 1,632,140 $ June 30, 2022 $ $ (359,502) 18,701 312,690 Three Months Ended September 30, 2022 (0.26) 0.24 (0.02) $ 6,561 154,563 (954) 132,059 1,608,523 $ $ (0.22) 0.30 0.08 $ $ December 31, 2022 (288,460) 18,073 446,339 5,172 34,386 (988) 214,522 1,573,883 December 31, 2022 $ $ $ (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 '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. "We 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 except Q4 2021, 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. In Q4 2021, weighted average common shares used in computation of diluted EPS excludes 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