Snap Inc Results Presentation Deck
Non-GAAP Financial Measures Reconciliation
(in thousands, unaudited)
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
Spectacles inventory-related charges
Reduction in force charges
Lease exit charges
Adjusted EBITDA¹
Free Cash Flow reconciliation:
Net cash used in operating activities
Less:
Purchases of property and equipment
Free Cash Flow²
$
$
March 31,
2017
$
(2,208,837) $
$ (188,243)
(2,424)
695
(187)
(3,014)
12,450
1,992,121
20,953
March 31,
2017
$
(154,997) $
(17,993)
(172,990) $
June 30,
2017
(443,093) $
(6,349)
998
(786)
212
12,585
245,028
(2,585)
Three Months Ended
September 30, December 31,
2017
2017
(193,990) $
June 30,
2017
(209,574) $
(443,159)
(19,365)
(228,939) $
(6,253)
887
(1,002)
(12,300)
17,467
221,702
3,890
39,867
September 30,
2017
$
Three Months Ended
(349,977)
(178,901) $ (158,922) $
(194,013) $
(6,070)
876
(2,553)
(3,240)
18,786
181,044
2,212
December 31,
2017
(25,948)
(219,961) $
$
(176,083) $
(21,212)
(197,295) $
March 31,
2018
(385,785) $
(6,104)
934
(3,153)
1,578
21,553
133,258
9,968
9,884
(217,867) $
March 31,
2018
(231,981) $
(36,315)
(268,296) $
June 30,
2018
(353,310)
(6,600)
930
61
1,077
22,514
156,371
5,997
3,928
(169,032)
June 30,
2018
(199,346)
(34,901)
(234,247)
'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. Spectacles inventory-related charges were primarily related to excess inventory reserves and inventory purchase commitment cancellation charges. Reduction in force charges were
primarily composed of severance expense and related payroll tax expense related to a reduction in force plan we implemented in Q1 2018. Lease exit charges were related to our exit of various operating leases prior to the end of the contractual lease term. The lease
exit charges reflect the present value of our remaining lease obligation on the cease use dates that occurred during the quarter, net of estimated sublease income. These charges are non-recurring and not reflective of underlying trends in our business.
2 We define Free Cash Flow as net cash provided by (used in) operating activities, reduced by purchases of property and equipment.
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