SANTA MONICA, Calif.–(BUSINESS WIRE)–
Snap Inc. (NYSE: SNAP) in the present day introduced monetary outcomes for the quarter and full yr ended December 31, 2022.

“We ended a difficult 2022 with 375 million Every day Energetic Customers, 12% year-over-year annual income progress, and optimistic full yr Free Money Circulate,” mentioned Evan Spiegel, CEO. “We proceed to face important headwinds as we glance to speed up income progress, and we’re making progress driving improved return on funding for advertisers and innovating to deepen the engagement of our group.”

Annual Monetary Abstract

• Income elevated 12% to $4.6 billion in 2022, in comparison with the prior yr.
• Internet loss was $1,430 million in 2022, together with restructuring prices of $189 million, in comparison with $488 million in 2021.
• Third consecutive yr of optimistic Adjusted EBITDA with $378 million in 2022.
• Second full yr of optimistic working money movement and Free Money Circulate of $185 million and $55 million, respectively.

This fall 2022 Monetary Abstract

• Income was $1,300 million, in comparison with $1,298 million within the prior yr.
• Internet loss was $288 million, together with restructuring prices of $34 million, in comparison with web revenue of $23 million within the prior yr.
• Adjusted EBITDA was $233 million, in comparison with $327 million within the prior yr.
• Working money movement was $125 million, in comparison with $186 million within the prior yr.
• Free Money Circulate was $78 million, in comparison with $161 million within the prior yr.

	Three Months Ended December 31,								P.c Change			Twelve Months Ended December 31,								P.c Change
		2022				2021							2022				2021
(Unaudited)	(in hundreds, besides per share quantities)
	(NM = Not Significant)
Income	$	1,299,735			$	1,297,885			0.1	%		$	4,601,847			$	4,117,048			12	%
Working loss	$	(287,597	)		$	(25,127	)		NM			$	(1,395,306	)		$	(702,069	)		(99	)%
Internet revenue (loss)	$	(288,460	)		$	22,550			NM			$	(1,429,653	)		$	(487,955	)		(193	)%
Adjusted EBITDA(1)	$	233,275			$	326,793			(29	)%		$	377,573			$	616,686			(39	)%
Internet money offered by (utilized in) working actions	$	125,291			$	185,528			(32	)%		$	184,614			$	292,880			(37	)%
Free Money Circulate(2)	$	78,366			$	160,963			(51	)%		$	55,308			$	223,005			(75	)%
Diluted web revenue (loss) per share attributable to frequent stockholders	$	(0.18	)		$	0.01			NM			$	(0.89	)		$	(0.31	)		(187	)%
Non-GAAP diluted web revenue (loss) per share(3)	$	0.14			$	0.22			(38	)%		$	0.17			$	0.50			(65	)%

(1)	See web page 10 for reconciliation of web revenue (loss) to Adjusted EBITDA. Within the third quarter of 2022, we initiated a strategic reprioritization plan, which included a discount of our world worker headcount by roughly 20%. Complete restructuring prices included in our consolidated statements of operations for the three and twelve months ended December 31, 2022 had been $34.3 million and $188.9 million, respectively.
(2)	See web page 10 for reconciliation of web money offered by (utilized in) working actions to Free Money Circulate.
(3)	See web page 11 for reconciliation of diluted web revenue (loss) per share to non-GAAP diluted web revenue (loss) per share.

This fall 2022 Abstract & Key Highlights

We grew and deepened our engagement with our group:

• DAUs had been 375 million in This fall 2022, a rise of 56 million, or 17% year-over-year.
• DAUs elevated sequentially and year-over-year in every of North America, Europe, and Remainder of World.
• Complete time spent watching Highlight content material grew over 100% year-over-year.
• 17 content material companions reached over 50 million world viewers every in This fall 2022.
• Via our broadcast partnerships with beIN SPORTS in Qatar and France, ITV within the UK, MediaPro in Spain, and Bell in Canada, amongst others, over 60 million Snapchatters watched World Cup Tales content material on Snapchat and over 285 million Snapchatters engaged with World Cup AR.
• We renewed our partnerships with UFC and the Washington Put up within the US. Internationally, we expanded our partnership with Groupe M6 in France and signed new agreements with BBC Studios within the UK, G+J Medien (RTL) in Germany, and Totem World in Australia.

We’re targeted on increasing and diversifying our income progress:

• In This fall, our subscription service Snapchat+ reached over 2.0 million paying subscribers. Snapchat+ affords unique, experimental, and pre-release options, and in This fall we launched new options akin to Customized Story Expiration and Customized Notification Sounds, offering subscribers with over 12 unique options.
• We have improved the accessibility of Conversions API (CAPI) by enabling entry by means of 4 new third-party companions, closing the yr with 12 complete, making CAPI extra accessible to all advertisers on our platform.
• We’ve accelerated our commerce integrations by means of the launch of our partnership with BigCommerce, enabling tens of hundreds of retailers to seamlessly sync catalogs and run Dynamic Advertisements.
• We have partnered with Well.io to unlock progress and drive efficiency by means of actual time automation. Via Well.io’s inventive and marketing campaign administration instruments, manufacturers can faucet into their automated adverts by scaling hundreds of focused variations.
• 1000’s of manufacturers continued investing of their natural presence on Snapchat by way of Public Profiles for Companies to construct deeper connections, and develop their viewers and natural engagements.

We invested in our augmented actuality platform:

• Over 300,000 AR creators and builders have constructed greater than 3 million AR Lenses.
• In our newest Lens Studio launch, we unveiled a number of new options together with garment, earring, and wrist put on strive‑on.
• We powered greater than 161 million product trials by over 35 million Snapchatters for Walmart, leveraging Catalog-Powered Procuring Lenses at-scale.
• We launched a brand new Digicam Package integration with H&M enabling an AR try-on expertise of their assortment of immersive AR trend, co-designed by H&M and the Institute of Digital Style.
• Luxottica Sunglass Hut drove over 14 million try-ons by means of Catalog-powered Procuring Lenses.
• In celebration of the movie Avatar: The Approach of Water, we teamed up with Disney to create an augmented actuality Lens that turns any Snapchatter right into a Na’vi. That is the primary ever sponsored AR Lens integration into the SoFi Stadium infinity display screen shocking and delighting attendees.
• In partnership with New Stability, we created a Vacation Gifting Concierge Lens to supply Snapchatters gifting inspiration utilizing augmented actuality and speech recognition by way of voiceML.
• We introduced a first-of-its-kind Bitmoji Drop in partnership with adidas that permits Snapchatters to make use of Snap Tokens to assert an unique adidas monitor jacket. Snapchatters seen the Bitmoji Drop banner over 280 million occasions.

Monetary Steerage

Given uncertainties associated to the working surroundings, we’re not offering our expectations for income or adjusted EBITDA for the primary quarter of 2023.

Convention Name Data

Snap Inc. will host a convention name to debate the outcomes at 2:30 p.m. Pacific / 5:30 p.m. Japanese in the present day. The stay audio webcast together with supplemental info shall be accessible at investor.snap.com. A recording of the webcast may also be accessible following the convention name.

Snap Inc. makes use of its web sites (together with snap.com and investor.snap.com) as means of exposing materials private info and for complying with its disclosure obligation beneath Regulation FD.

Definitions

Free Money Circulate is outlined as web money offered by (utilized in) working actions, lowered by purchases of property and tools.

Frequent shares excellent plus shares underlying stock-based awards consists of frequent shares excellent, restricted inventory items, restricted inventory awards, and excellent inventory choices.

Adjusted EBITDA is outlined as web revenue (loss), excluding curiosity revenue; curiosity expense, different revenue (expense), web; revenue tax profit (expense); depreciation and amortization; stock-based compensation expense; payroll and different tax expense associated to stock-based compensation; and sure different non-cash or non-recurring objects impacting web revenue (loss) occasionally.

A Every day Energetic Person (DAU) is outlined as a registered Snapchat person who opens the Snapchat software at the least as soon as throughout an outlined 24-hour interval. We calculate common DAUs for a selected quarter by including the variety of DAUs on every day of that quarter and dividing that sum by the variety of days in that quarter.

Common income per person (ARPU) is outlined as quarterly income divided by the common DAUs.

A Month-to-month Energetic Person (MAU) is outlined as a registered Snapchat person who opens the Snapchat software at the least as soon as throughout the 30-day interval ending on the calendar month-end. We calculate common Month-to-month Energetic Customers for a selected quarter by calculating the common of the MAUs as of every calendar month-end in that quarter.

Be aware: For changes and extra info relating to the non-GAAP monetary measures and different objects mentioned, please see “Non-GAAP Monetary Measures,” “Reconciliation of GAAP to Non-GAAP Monetary Measures,” and “Supplemental Monetary Data and Enterprise Metrics.”

About Snap Inc.

Snap Inc. is a know-how firm. We consider the digicam presents the best alternative to enhance the best way folks stay and talk. We contribute to human progress by empowering folks to precise themselves, stay within the second, study in regards to the world, and have enjoyable collectively. For extra info, go to snap.com.

Ahead-Wanting Statements

This press launch accommodates forward-looking statements throughout the which means of Part 27A of the Securities Act of 1933, as amended, or the Securities Act, and Part 21E of the Securities Trade Act of 1934, as amended, or the Trade Act, about us and our trade that contain substantial dangers and uncertainties. All statements apart from statements of historic details contained on this press launch, together with statements relating to steerage, our future outcomes of operations or monetary situation, our future inventory repurchase packages or inventory dividends, enterprise technique and plans, person progress and engagement, product initiatives, targets of administration for future operations, and advertiser and companion choices, are forward-looking statements. In some circumstances, you possibly can establish forward-looking statements as a result of they comprise phrases akin to “anticipate,” “consider,” “ponder,” “proceed,” “may,” “estimate,” “anticipate,” “going to,” “intend,” “could,” “plan,” “potential,” “predict,” “mission,” “ought to,” “goal,” “will,” or “would” or the detrimental of those phrases or different comparable phrases or expressions. We warning you that the foregoing could not embody all the forward-looking statements made on this press launch.

You shouldn’t depend on forward-looking statements as predictions of future occasions. We have now based mostly the forward-looking statements contained on this press launch totally on our present expectations and projections about future occasions and tendencies, together with our monetary outlook, macroeconomic uncertainty, geo-political conflicts, and the COVID-19 pandemic, that we consider could proceed to have an effect on our enterprise, monetary situation, outcomes of operations, and prospects. These forward-looking statements are topic to dangers and uncertainties associated to: our monetary efficiency; our potential to realize and maintain profitability; our potential to generate and maintain optimistic money movement; our potential to draw and retain customers, publishers, and advertisers; competitors and new market entrants; managing our progress and future bills; compliance with new legal guidelines, rules, and govt actions; our potential to take care of, shield, and improve our mental property; our potential to achieve present and new market segments; our potential to draw and retain certified workforce members and key personnel; our potential to repay excellent debt; future acquisitions, divestitures, or investments; and the potential opposed influence of local weather change, pure disasters, well being epidemics, macroeconomic situations, and battle or different armed battle, in addition to dangers, uncertainties, and different components described in “Danger Components” and elsewhere in our most up-to-date periodic report filed with the U.S. Securities and Trade Fee, or SEC, which is accessible on the SEC’s web site at www.sec.gov. Further info shall be made accessible in Snap Inc.’s periodic report that shall be filed with the SEC for the interval coated by this press launch and different filings that we make occasionally with the SEC. As well as, any forward-looking statements contained on this press launch are based mostly on assumptions that we consider to be affordable as of this date. We undertake no obligation to replace any forward-looking statements to replicate occasions or circumstances after the date of this press launch or to replicate new info or the incidence of unanticipated occasions, together with future developments associated to geo-political conflicts, the COVID-19 pandemic, and macroeconomic situations, besides as required by legislation.

Non-GAAP Monetary Measures

To complement our consolidated monetary statements, that are ready and offered in accordance with GAAP, we use sure non-GAAP monetary measures, as described beneath, to know and consider our core working efficiency. These non-GAAP monetary measures, which can be totally different than equally titled measures utilized by different corporations, are offered to boost traders’ total understanding of our monetary efficiency and shouldn’t be thought-about an alternative choice to, or superior to, the monetary info ready and offered in accordance with GAAP.

We use the non-GAAP monetary measure of Free Money Circulate, which is outlined as web money offered by (utilized in) working actions, lowered by purchases of property and tools. We consider Free Money Circulate is a vital liquidity measure of the money that’s accessible, after capital expenditures, for operational bills and funding in our enterprise and is a key monetary indicator utilized by administration. Moreover, we consider that Free Money Circulate is a vital measure since we use third-party infrastructure companions to host our providers and due to this fact we don’t incur important capital expenditures to assist income producing actions. Free Money Circulate is beneficial to traders as a liquidity measure as a result of it measures our potential to generate or use money. As soon as our enterprise wants and obligations are met, money can be utilized to take care of a robust stability sheet and put money into future progress.

We use the non-GAAP monetary measure of Adjusted EBITDA, which is outlined as web revenue (loss); excluding curiosity revenue; curiosity expense; different revenue (expense), web; revenue tax profit (expense); depreciation and amortization; stock-based compensation expense; payroll and different tax expense associated to stock-based compensation; and sure different non-cash or non-recurring objects impacting web revenue (loss) occasionally. We consider that Adjusted EBITDA helps establish underlying tendencies in our enterprise that might in any other case be masked by the impact of the bills that we exclude in Adjusted EBITDA.

We use the non-GAAP monetary measure of non-GAAP web revenue (loss), which is outlined as web revenue (loss); excluding amortization of intangible property; stock-based compensation expense; payroll and different tax expense associated to stock-based compensation; sure different non-cash or non-recurring objects impacting web revenue (loss) occasionally; and associated revenue tax changes. Non-GAAP web revenue (loss) and weighted common diluted shares are then used to calculate non-GAAP diluted web revenue (loss) per share. Just like Adjusted EBITDA, we consider these measures assist establish underlying tendencies in our enterprise that might in any other case be masked by the impact of the bills we exclude within the measure.

We consider that these non-GAAP monetary measures present helpful details about our monetary efficiency, improve the general understanding of our previous efficiency and future prospects, and permit for higher transparency with respect to key metrics utilized by our administration for monetary and operational decision-making. We’re presenting these non-GAAP measures to help traders in seeing our monetary efficiency by means of the eyes of administration, and since we consider that these measures present a further instrument for traders to make use of in evaluating our core monetary efficiency over a number of durations with different corporations in our trade.

For a reconciliation of those non-GAAP monetary measures to essentially the most instantly comparable GAAP monetary measure, please see “Reconciliation of GAAP to Non-GAAP Monetary Measures.”

Snap Inc., “Snapchat,” and our different registered and customary legislation commerce names, logos, and repair marks are the property of Snap Inc. or our subsidiaries.

SNAP INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in hundreds, unaudited)
	Three Months Ended December 31,								Twelve Months Ended December 31,
		2022				2021				2022				2021
Money flows from working actions
Internet revenue (loss)	$	(288,460	)		$	22,550			$	(1,429,653	)		$	(487,955	)
Changes to reconcile web revenue (loss) to web money offered by (utilized in) working actions:
Depreciation and amortization		48,491				34,863				202,173				119,141
Inventory-based compensation		450,574				297,564				1,387,787				1,092,135
Amortization of debt issuance prices		1,837				1,010				6,865				4,311
Losses (beneficial properties) on debt and fairness securities, web		21,279				(65,525	)			36,838				(289,052	)
Induced conversion expense associated to convertible notes		—				—				—				41,538
Different		(741	)			4,624				15,596				8,643
Change in working property and liabilities, web of impact of acquisitions:
Accounts receivable, web of allowance		(182,216	)			(154,923	)			(119,780	)			(332,967	)
Pay as you go bills and different present property		(8,803	)			(11,045	)			(40,917	)			(26,607	)
Working lease right-of-use property		18,236				12,041				71,441				47,258
Different property		12,129				(5,476	)			(504	)			(10,916	)
Accounts payable		(13,950	)			36,149				46,492				53,579
Accrued bills and different present liabilities		88,890				27,366				71,706				117,092
Working lease liabilities		(22,455	)			(14,029	)			(68,886	)			(49,294	)
Different liabilities		480				359				5,456				5,974
Internet money offered by (utilized in) working actions		125,291				185,528				184,614				292,880
Money flows from investing actions
Purchases of property and tools		(46,925	)			(24,565	)			(129,306	)			(69,875	)
Purchases of strategic investments		(13,996	)			(7,650	)			(26,346	)			(41,160	)
Gross sales of strategic investments		—				342				63,276				36,777
Money paid for acquisitions, web of money acquired		(35,409	)			(134,324	)			(67,067	)			(310,915	)
Purchases of marketable securities		(753,372	)			(542,217	)			(3,485,638	)			(2,438,983	)
Gross sales of marketable securities		23,799				12,000				75,716				379,555
Maturities of marketable securities		704,773				529,981				2,525,215				2,536,725
Different		16				(562	)			(18,125	)			(1,897	)
Internet money offered by (utilized in) investing actions		(121,114	)			(166,995	)			(1,062,275	)			90,227
Money flows from financing actions
Proceeds from issuance of convertible notes, web of issuance prices		—				—				1,483,500				1,137,227
Buy of capped calls		—				—				(177,000	)			(86,825	)
Proceeds from the train of inventory choices		401				2,916				4,272				14,671
Funds of debt issuance prices		—				—				(3,006	)			—
Repurchases of Class A non-voting frequent inventory		(500,539	)			—				(1,001,052	)			—
Internet money offered by (utilized in) financing actions		(500,138	)			2,916				306,714				1,065,073
Change in money, money equivalents, and restricted money		(495,961	)			21,449				(570,947	)			1,448,180
Money, money equivalents, and restricted money, starting of interval		1,919,737				1,973,274				1,994,723				546,543
Money, money equivalents, and restricted money, finish of interval	$	1,423,776			$	1,994,723			$	1,423,776			$	1,994,723
Supplemental disclosures
Money paid for revenue taxes, web	$	3,121			$	9,105			$	12,087			$	25,333
Money paid for curiosity	$	682			$	638			$	8,873			$	10,887

SNAP INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in hundreds, besides per share quantities, unaudited)
	Three Months Ended December 31,								Twelve Months Ended December 31,
		2022				2021				2022				2021
Income	$	1,299,735			$	1,297,885			$	4,601,847			$	4,117,048
Prices and bills:
Value of income		481,311				449,151				1,815,342				1,750,246
Analysis and improvement		584,942				434,195				2,109,800				1,565,467
Gross sales and advertising and marketing		295,150				245,228				1,118,746				792,764
Basic and administrative		225,929				194,438				953,265				710,640
Complete prices and bills		1,587,332				1,323,012				5,997,153				4,819,117
Working loss		(287,597	)			(25,127	)			(1,395,306	)			(702,069	)
Curiosity revenue		28,698				1,554				58,597				5,199
Curiosity expense		(5,312	)			(4,050	)			(21,459	)			(17,676	)
Different revenue (expense), web		(20,043	)			63,204				(42,529	)			240,175
Loss earlier than revenue taxes		(284,254	)			35,581				(1,400,697	)			(474,371	)
Revenue tax profit (expense)		(4,206	)			(13,031	)			(28,956	)			(13,584	)
Internet revenue (loss)	$	(288,460	)		$	22,550			$	(1,429,653	)		$	(487,955	)
Internet revenue (loss) per share attributable to Class A, Class B, and Class C frequent stockholders:
Primary	$	(0.18	)		$	0.01			$	(0.89	)		$	(0.31	)
Diluted	$	(0.18	)		$	0.01			$	(0.89	)		$	(0.31	)
Weighted common shares utilized in computation of web revenue (loss) per share:
Primary		1,573,883				1,604,778				1,608,304				1,558,997
Diluted		1,573,883				1,668,879				1,608,304				1,558,997

SNAP INC. CONSOLIDATED BALANCE SHEETS (in hundreds, besides par worth, unaudited)
	December 31, 2022				December 31, 2021
Property
Present property
Money and money equivalents	$	1,423,121			$	1,993,809
Marketable securities		2,516,003				1,699,076
Accounts receivable, web of allowance		1,183,092				1,068,873
Pay as you go bills and different present property		134,431				92,244
Complete present property		5,256,647				4,854,002
Property and tools, web		271,777				202,644
Working lease right-of-use property		370,952				322,252
Intangible property, web		204,480				277,654
Goodwill		1,646,120				1,588,452
Different property		279,562				291,302
Complete property	$	8,029,538			$	7,536,306
Liabilities and Stockholders’ Fairness
Present liabilities
Accounts payable	$	181,774			$	125,282
Working lease liabilities		46,485				52,396
Accrued bills and different present liabilities		987,340				674,108
Complete present liabilities		1,215,599				851,786
Convertible senior notes, web		3,742,520				2,253,087
Working lease liabilities, noncurrent		386,271				325,509
Different liabilities		104,450				315,756
Complete liabilities		5,448,840				3,746,138
Commitments and contingencies
Stockholders’ fairness
Class A non-voting frequent inventory, $0.00001 par worth. 3,000,000 shares licensed, 1,371,242 shares issued, 1,319,930 shares excellent at December 31, 2022 and three,000,000 shares licensed, 1,364,887 shares issued and excellent at December 31, 2021.		13				14
Class B voting frequent inventory, $0.00001 par worth. 700,000 shares licensed, 22,529, shares issued and excellent at December 31, 2022 and 700,000 shares licensed, 22,769 shares issued and excellent at December 31, 2021.		—				—
Class C voting frequent inventory, $0.00001 par worth. 260,888 shares licensed, 231,627 shares issued and excellent at December 31, 2022 and 260,888 shares licensed, 231,627 shares issued and excellent at December 31, 2021.		2				2
Treasury inventory, at value. 51,312 shares of Class A non-voting frequent inventory at December 31, 2022.		(500,514	)			—
Further paid-in capital		13,309,828				12,069,097
Amassed deficit		(10,214,657	)			(8,284,466	)
Amassed different complete revenue (loss)		(13,974	)			5,521
Complete stockholders’ fairness		2,580,698				3,790,168
Complete liabilities and stockholders’ fairness	$	8,029,538			$	7,536,306

SNAP INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (in hundreds, unaudited)
	Three Months Ended December 31,								Twelve Months Ended December 31,
		2022				2021				2022				2021
Free Money Circulate reconciliation:
Internet money offered by (utilized in) working actions	$	125,291			$	185,528			$	184,614			$	292,880
Much less:
Purchases of property and tools		(46,925	)			(24,565	)			(129,306	)			(69,875	)
Free Money Circulate	$	78,366			$	160,963			$	55,308			$	223,005

	Three Months Ended December 31,								Twelve Months Ended December 31,
		2022				2021				2022				2021
Adjusted EBITDA reconciliation:
Internet revenue (loss)	$	(288,460	)		$	22,550			$	(1,429,653	)		$	(487,955	)
Add (deduct):
Curiosity revenue		(28,698	)			(1,554	)			(58,597	)			(5,199	)
Curiosity expense		5,312				4,050				21,459				17,676
Different (revenue) expense, web		20,043				(63,204	)			42,529				(240,175	)
Revenue tax (profit) expense		4,206				13,031				28,956				13,584
Depreciation and amortization		34,975				34,863				186,434				119,141
Inventory-based compensation expense		446,339				297,564				1,353,283				1,092,135
Payroll and different tax expense associated to stock-based compensation		5,172				19,493				44,213				107,479
Restructuring prices (1)		34,386				—				188,949				—
Adjusted EBITDA	$	233,275			$	326,793			$	377,573			$	616,686

(1)

Restructuring prices in 2022 had been composed primarily of severance and associated prices of $6.0 million and $97.1 million for the three and twelve months ended December 31, 2022, respectively, stock-based compensation expense, lease exit and associated prices, impairment prices, contract termination prices, and intangible asset amortization. These prices are non-recurring and never reflective of underlying tendencies in our enterprise.

Complete depreciation and amortization expense by perform:

	Three Months Ended December 31,								Twelve Months Ended December 31,
		2022				2021				2022				2021
Depreciation and amortization expense: (1)
Value of income	$	8,114			$	4,832			$	24,235			$	19,711
Analysis and improvement		29,834				19,444				98,041				62,159
Gross sales and advertising and marketing		6,130				7,118				67,169				21,772
Basic and administrative		4,413				3,469				12,728				15,499
Complete	$	48,491			$	34,863			$	202,173			$	119,141

(1)	Depreciation and amortization expense in 2022 consists of restructuring prices.

SNAP INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued) (in hundreds, besides per share quantities, unaudited)
Complete stock-based compensation expense by perform:
	Three Months Ended December 31,								Twelve Months Ended December 31,
		2022				2021				2022				2021
Inventory-based compensation expense: (1)
Value of income	$	4,248			$	2,586			$	12,288			$	17,221
Analysis and improvement		319,447				202,953				970,746				740,130
Gross sales and advertising and marketing		69,346				45,991				203,092				164,241
Basic and administrative		57,533				46,034				201,661				170,543
Complete	$	450,574			$	297,564			$	1,387,787			$	1,092,135

(1)	Inventory-based compensation expense in 2022 consists of restructuring prices.

	Three Months Ended December 31,								Twelve Months Ended December 31,
		2022				2021				2022				2021
Non-GAAP web revenue (loss) reconciliation:
Internet revenue (loss)	$	(288,460	)		$	22,550			$	(1,429,653	)		$	(487,955	)
Amortization of intangible property		18,073				20,228				123,413				63,184
Inventory-based compensation expense		446,339				297,564				1,353,283				1,092,135
Payroll and different tax expense associated to stock-based compensation		5,172				19,493				44,213				107,479
Restructuring prices (1)		34,386				—				188,949				—
Revenue tax changes		(988	)			(374	)			(2,507	)			(192	)
Non-GAAP web revenue (loss)	$	214,522			$	359,461			$	277,698			$	774,651
Weighted-average frequent shares – Diluted (2)		1,573,883				1,668,879				1,608,304				1,558,997
Non-GAAP diluted web revenue (loss) per share reconciliation:
Diluted web revenue (loss) per share	$	(0.18	)		$	0.01			$	(0.89	)		$	(0.31	)
Non-GAAP adjustment to web revenue (loss)		0.32				0.21				1.06				0.81
Non-GAAP diluted web revenue (loss) per share	$	0.14			$	0.22			$	0.17			$	0.50

(1)	Restructuring prices in 2022 had been composed primarily of severance and associated prices of $6.0 million and $97.1 million for the three and twelve months ended December 31, 2022, respectively, stock-based compensation expense, lease exit and associated prices, impairment prices, contract termination prices, and intangible asset amortization. These prices are non-recurring and never reflective of underlying tendencies in our enterprise.
(2)	For the three months ended December 31, 2021, the weighted common frequent shares utilized in computation of diluted web revenue per share excludes shares underlying excellent convertible notes and capped calls as such shares had been antidilutive. For the three and twelve months ended December 31, 2022 and the twelve months ended December 31, 2021, the weighted common frequent shares utilized in computation of diluted web loss per share excludes shares underlying excellent stock-based awards, convertible notes, and capped calls as such shares had been anti-dilutive.

SNAP INC. SUPPLEMENTAL FINANCIAL INFORMATION AND BUSINESS METRICS ({dollars} and shares in hundreds, besides per person quantities, unaudited)
	Q3 2021				This fall 2021				Q1 2022				Q2 2022				Q3 2022				This fall 2022
	(NM = Not Significant)
Money Flows and Shares
Internet money offered by (utilized in) working actions	$	71,552			$	185,528			$	127,459			$	(124,081	)		$	55,945			$	125,291
Internet money offered by (utilized in) working actions – YoY (year-over-year)		231	%			453	%			(7	)%			23	%			(22	)%			(32	)%
Internet money offered by (utilized in) working actions – TTM (trailing twelve months)	$	54,807			$	292,880			$	283,453			$	260,458			$	244,851			$	184,614
Purchases of property and tools	$	(19,836	)		$	(24,565	)		$	(21,175	)		$	(23,370	)		$	(37,836	)		$	(46,925	)
Purchases of property and tools – YoY		35	%			49	%			95	%			60	%			91	%			91	%
Purchases of property and tools – TTM	$	(61,757	)		$	(69,875	)		$	(80,199	)		$	(88,946	)		$	(106,946	)		$	(129,306	)
Free Money Circulate	$	51,716			$	160,963			$	106,284			$	(147,451	)		$	18,109			$	78,366
Free Money Circulate – YoY		174	%			333	%			(16	)%			(27	)%			(65	)%			(51	)%
Free Money Circulate – TTM	$	(6,950	)		$	223,005			$	203,254			$	171,512			$	137,905			$	55,308
Frequent shares excellent		1,605,153				1,619,283				1,632,563				1,644,974				1,605,868				1,574,086
Frequent shares excellent – YoY		8	%			8	%			7	%			4	%			—	%			(3	)%
Shares underlying stock-based awards		92,726				82,814				75,066				92,105				94,772				131,718
Shares underlying stock-based awards – YoY		(33	)%			(34	)%			(32	)%			(12	)%			2	%			59	%
Complete frequent shares excellent plus shares underlying stock-based awards		1,697,879				1,702,097				1,707,629				1,737,079				1,700,640				1,705,804
Complete frequent shares excellent plus shares underlying stock-based awards – YoY		5	%			4	%			5	%			3	%			—	%			—	%
Outcomes of Operations
Income	$	1,067,471			$	1,297,885			$	1,062,727			$	1,110,909			$	1,128,476			$	1,299,735
Income – YoY		57	%			42	%			38	%			13	%			6	%			0.1	%
Income – TTM	$	3,730,485			$	4,117,048			$	4,410,191			$	4,538,992			$	4,599,997			$	4,601,847
Income by area (1)
North America	$	786,917			$	932,077			$	758,261			$	785,681			$	811,602			$	880,310
North America – YoY		60	%			41	%			37	%			12	%			3	%			(6	)%
North America – TTM	$	2,700,787			$	2,973,701			$	3,178,990			$	3,262,936			$	3,287,621			$	3,235,854
Europe	$	153,121			$	208,912			$	162,132			$	170,097			$	161,396			$	218,552
Europe – YoY		49	%			48	%			43	%			12	%			5	%			5	%
Europe – TTM	$	560,616			$	627,920			$	676,433			$	694,262			$	702,537			$	712,177
Remainder of World	$	127,433			$	156,896			$	142,334			$	155,131			$	155,478			$	200,873
Remainder of World – YoY		53	%			42	%			38	%			21	%			22	%			28	%
Remainder of World – TTM	$	469,082			$	515,427			$	554,768			$	581,794			$	609,839			$	653,816
Working loss	$	(180,824	)		$	(25,127	)		$	(271,527	)		$	(400,940	)		$	(435,242	)		$	(287,597	)
Working loss – YoY		(8	)%			74	%			11	%			(108	)%			(141	)%			NM
Working loss – Margin		(17	)%			(2	)%			(26	)%			(36	)%			(39	)%			(22	)%
Working loss – TTM	$	(774,178	)		$	(702,069	)		$	(669,990	)		$	(878,418	)		$	(1,132,836	)		$	(1,395,306	)
Internet revenue (loss)	$	(71,959	)		$	22,550			$	(359,624	)		$	(422,067	)		$	(359,502	)		$	(288,460	)
Internet revenue (loss) – YoY		64	%			120	%			(25	)%			(178	)%			(400	)%			NM
Internet revenue (loss) – TTM	$	(623,604	)		$	(487,955	)		$	(560,697	)		$	(831,100	)		$	(1,118,643	)		$	(1,429,653	)
Adjusted EBITDA	$	174,199			$	326,793			$	64,468			$	7,190			$	72,640			$	233,275
Adjusted EBITDA – YoY		209	%			97	%			3872	%			(94	)%			(58	)%			(29	)%
Adjusted EBITDA – Margin (2)		16	%			25	%			6	%			1	%			6	%			18	%
Adjusted EBITDA – TTM	$	455,502			$	616,686			$	682,863			$	572,650			$	471,091			$	377,573

(1)	Complete income for geographic reporting is apportioned to every area based mostly on our dedication of the geographic location through which promoting impressions are delivered, as this approximates income based mostly on person exercise. This allocation is in keeping with how we decide ARPU.
(2)	We outline Adjusted EBITDA margin as Adjusted EBITDA divided by GAAP income.

SNAP INC. SUPPLEMENTAL FINANCIAL INFORMATION AND BUSINESS METRICS (continued) ({dollars} and shares in hundreds, besides per person quantities, unaudited)
	Q3 2021				This fall 2021				Q1 2022				Q2 2022				Q3 2022				This fall 2022
Different
DAU (in thousands and thousands)		306				319				332				347				363				375
DAU – YoY		23	%			20	%			18	%			18	%			19	%			17	%
DAU by area (in thousands and thousands)
North America		96				97				98				99				100				100
North America – YoY		7	%			6	%			5	%			4	%			4	%			3	%
Europe		80				82				84				86				88				92
Europe – YoY		11	%			11	%			10	%			10	%			11	%			12	%
Remainder of World		130				140				150				162				175				183
Remainder of World – YoY		49	%			41	%			36	%			35	%			34	%			31	%
ARPU	$	3.49			$	4.06			$	3.20			$	3.20			$	3.11			$	3.47
ARPU – YoY		28	%			18	%			17	%			(4	)%			(11	)%			(15	)%
ARPU by area
North America	$	8.20			$	9.58			$	7.77			$	7.93			$	8.13			$	8.77
North America – YoY		49	%			33	%			31	%			8	%			(1	)%			(9	)%
Europe	$	1.92			$	2.54			$	1.93			$	1.98			$	1.83			$	2.38
Europe – YoY		34	%			33	%			30	%			2	%			(5	)%			(6	)%
Remainder of World	$	0.98			$	1.12			$	0.95			$	0.96			$	0.89			$	1.10
Remainder of World – YoY		3	%			1	%			2	%			(11	)%			(9	)%			(2	)%
Workers (full-time; excludes part-time, contractors, and short-term personnel)		5,190				5,661				6,131				6,446				5,706				5,288
Workers – YoY		40	%			47	%			52	%			38	%			10	%			(7	)%
Depreciation and amortization expense
Value of income	$	4,876			$	4,832			$	5,512			$	5,061			$	5,548			$	8,114
Analysis and improvement		17,321				19,444				22,123				22,362				23,722				29,834
Gross sales and advertising and marketing		6,306				7,118				7,392				49,061				4,586				6,130
Basic and administrative		4,007				3,469				3,073				2,807				2,435				4,413
Complete	$	32,510			$	34,863			$	38,100			$	79,291			$	36,291			$	48,491
Depreciation and amortization expense – YoY		49	%			53	%			62	%			180	%			12	%			39	%
Inventory-based compensation expense
Value of income	$	9,132			$	2,586			$	2,446			$	2,849			$	2,745			$	4,248
Analysis and improvement		198,893				202,953				182,866				221,650				246,783				319,447
Gross sales and advertising and marketing		51,675				45,991				42,071				48,577				43,098				69,346
Basic and administrative		41,198				46,034				48,061				45,734				50,333				57,533
Complete	$	300,898			$	297,564			$	275,444			$	318,810			$	342,959			$	450,574
Inventory-based compensation expense – YoY		57	%			35	%			16	%			24	%			14	%			51	%

 

Supply: Snap Inc.