Snap Inc Results Presentation Deck slide image

Snap Inc Results Presentation Deck

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 Reduction in force charges Lease exit charges Adjusted EBITDA² $ $ $ $ March 31, 2018 (231,981) $ (36,315) (268,296) $ March 31, 2018 (385,785) $ (6,104) 934 (3,153) 1,578 21,553 133,258 9,968 9,884 (217,867) $ June 30, 2018 (199,346) $ (34,901) (234,247) $ June 30, 2018 (353,310) $ (6,600) 930 61 1,077 22,514 156,371 5,997 September 30, 2018 Three Months Ended 3,928 (169,032) $ (132,543) $ (26,285) (158,828) $ September 30, 2018 Three Months Ended (325,148) $ (7,011) 919 7,625 244 24,898 126,809 3,947 December 31, 2018 29,340 (138,377) $ (126,054) $ (22,741) (148,795) $ December 31, 2018 (191,668) $ (7,513) 1,111 3,715 (352) 22,682 121,772 2,015 (2,125) (50,363) $ March 31, 2019 (66,178) $ (11,814) (77,992) $ 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) June 30, 2019 (255,174) (7,446) 809 (44,085) 1,078 22,660 195,574 7,871 (78,713) ¹ We 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. Reduction in force charges in Q1 2018 were primarily composed of severance expense and related payroll tax expense related to a reduction in force plan. 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 primarily include 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. 1
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