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
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) $
(2,424)
695
(187)
(3,014)
12,450
1,992,121
20,953
(188,243) $
March 31,
2017
(154,997) $
(17,993)
(172,990) $
June 30,
2017
Three Months Ended
September 30,
2017
(443,093) $
(6,349)
998
(786)
212
12,585
245,028
(2,585)
June 30,
2017
(443,159) $
(6,253)
887
(209,574) $
(19,365)
(228,939) $
(1,002)
(12,300)
17,467
221,702
3,890
39,867
(193,990) $ (178,901) $
December 31,
2017
Three Months Ended
September 30,
2017
(349,977) $
(194,013) $
(25,948)
(219,961) $
(6,070)
876
(2,553)
(3,240)
18,786
181,044
2,212
(158,922) $
December 31,
2017
(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)
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. Reduction in force charges were
related to a reduction in force plan we implemented during March 2018, impacting approximately 7% of our global headcount, primarily in engineering and sales. The charges were composed primarily of severance expense and related payroll tax expense. These
charges are non-recurring and not reflective of underlying trends in our business. Additionally, we recognized a stock-based compensation forfeiture benefit of $31.5 million, which is included in the stock-based compensation expense line item above.
2 We define Free Cash Flow as net cash used in operating activities, reduced by purchases of property and equipment.
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