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Mar 31, 2021

Snapchat Q1 2021 Earnings Report

Snapchat achieved strong growth in revenue and daily active users, delivering positive free cash flow.

Key Takeaways

Snap Inc. announced its Q1 2021 financial results, reporting a 66% increase in revenue to $770 million and a 22% increase in daily active users to 280 million. The company also achieved positive free cash flow for the first time as a public company.

Daily Active Users increased 22% year-over-year to 280 million.

Revenue increased 66% year-over-year to $770 million.

Operating cash flow was $137 million.

Free Cash Flow reached $126 million, marking the first quarter of positive Free Cash Flow as a public company.

Total Revenue
$770M
Previous year: $462M
+66.4%
EPS
-$0.191
Previous year: -$0.08
+138.8%
Global DAU
280M
Previous year: 229M
+22.3%
North America DAU
93M
Previous year: 88M
+5.7%
Europe DAU
77M
Previous year: 70M
+10.0%
Gross Profit
$357M
Previous year: $209M
+70.7%
Cash and Equivalents
$968M
Previous year: $902M
+7.3%
Free Cash Flow
$126M
Previous year: -$4.61M
-2835.1%
Total Assets
$5.06B
Previous year: $3.9B
+29.8%

Snapchat

Snapchat

Snapchat Revenue by Geographic Location

Forward Guidance

Snap Inc. provided the following forward-looking statements for the second quarter of 2021:

Positive Outlook

  • Revenue is estimated to be between $820 million and $840 million, compared to $454 million in Q2 2020.
  • Adjusted EBITDA is estimated to be between $(20) million and breakeven, compared to $(96) million in Q2 2020.
  • Guidance assumes constant foreign currency rates.
  • Guidance assumes no business acquisitions, investments, restructurings, or legal settlements are concluded in the quarter.
  • Results are based on assumptions believed to be reasonable as of April 22, 2021.

Challenges Ahead

  • Forward-looking statements are subject to substantial uncertainty.
  • Results may be materially affected by many factors.
  • Guidance is based on assumptions that may be affected by the COVID-19 pandemic.
  • The company undertakes no obligation to update any forward-looking statements.
  • Future developments related to the COVID-19 pandemic may affect the guidance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income