Snap Inc Results Presentation Deck slide image

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 Adjusted EBITDA¹ Free Cash Flow reconciliation: Net cash used in operating activities Less: Purchases of property and equipment Free Cash Flow² September 30, 2016 (124,228) $ (1,938) 648 1,421 (6,871) 7,437 14,795 132 $ December 31, 2016 September 30, 2016 (216,866) $ Three Months Ended March 31, 2017 (169,945) $ (17,192) (234,058) $ (1,486) 776 1,215 (297) December 31, 2016 10,633 6,767 53 $ (108,604) $ (152,284) $ (188,243) $ Three Months Ended March 31, 2017 (167,728) $ (2,208,837) $ (20,376) (188,104) $ (2,424) 695 (187) (3,014) 12,450 1,992,121 20,953 (154,997) $ (17,993) (172,990) $ June 30, 2017 (443,093) $ (6,349) 998 (786) 212 12,585 245,028 (2,585) September 30, 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 September 30, 2017 3,890 39,867 (178,901) (194,013) (25,948) (219,961) $ ¹ 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. These charges are non-recurring and not reflective of underlying trends in our business. 2 We define Free Cash Flow as net cash used in operating activities, reduced by purchases of property and equipment.
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