SNAP Earning Date, Transcript Summary & Report

User Growth Surge: Daily active users reached 453 million in Q4, an increase of 39 million year-over-year, indicating strong community growth.

Q4 Revenue Increase: Q4 revenue increased 14% year-over-year to $1.56 billion, driven by a 16% growth in direct response advertising revenue for the full year.

Adjusted EBITDA Performance: Adjusted EBITDA for Q4 was $276 million, reflecting a 60% flow-through rate from year-over-year revenue growth, showcasing improved profitability.

Positive Free Cash Flow: Free cash flow for Q4 was $182 million, contributing to a total of $219 million in free cash flow for the full year, marking the fourth consecutive year of positive free cash flow.

Subscriber Growth Surge: Snapchat+ subscribers grew from 7 million to 14 million in 2024, with other revenue, primarily from subscriptions, increasing 131% year-over-year to over $500 million annualized run rate.

Brand Advertising Revenue Decline: Brand-oriented advertising revenue was down 1% year-over-year, indicating continued weakness concentrated among a small group of large clients in North America.

North America Revenue Growth: North America revenue grew only 8% year-over-year, reflecting a lower rate of growth due to weaker large client upper funnel demand concentrated in this region.

Operating Expenses Increase: Adjusted operating expenses increased by 4% year-over-year to $612 million, driven by higher legal costs and product-related R&D costs despite a decrease in personnel costs.

Operating Expenses Increase: In Q1, adjusted operating expenses are expected to grow by 11% to 12% year-over-year, driven by increased headcount and higher legal-related costs, indicating ongoing financial pressure.

Infrastructure Cost Increase: Infrastructure costs increased by 9% year-over-year to $669 million, primarily due to ramped investments in machine learning and AI, which may impact future profitability.