Core Highlights: No additional updates needed.
Revenue Breakdown: No updates needed.
Management Outlook: Snap expects net losses to continue in the near term as they invest in priorities like AR and growing the user base globally to drive future revenue growth through product innovation and expanding ad offerings.
Operating Data: - Stock-based compensation expense was $783 million for the nine months ended September 30, 2024. - Cash used in operating activities was $183 million versus $82 million provided in the prior period. - Cash used in investing activities was $568 million versus $52 million used in the prior period. - Cash used in financing activities was $429 million versus $254 million used in the prior period. - Snap had $968 million in cash and equivalents, $3.6 billion in convertible debt outstanding as of September 30, 2024.
Operational Risks: Key risks updated: - Snap's business model and priorities frequently change, including recent restructuring and reprioritization efforts to focus on top priorities and drive profitability/cash flow. This could disrupt operations, increase costs, hurt employee retention/morale, damage reputation, or distract management. - Snap depends on maintaining and scaling technology infrastructure. Any disruptions, capacity constraints, reliance on third party providers like Google Cloud and AWS, or failure to invest adequately could harm service reliability and reputation. - Expanding internationally requires significant resources and exposes Snap to various risks like political/social instability, regulations, payment fraud, intellectual property protection, competition, and employee turnover across regions. - Snap's products are highly technical and may contain vulnerabilities, bugs, hardware errors that are difficult to detect and could harm reputation if unresolved.

Original Filing