Snap Inc. (NYSE:SNAP) Q2 2019 Earnings Conference Call - Final Transcript

Jul 23, 2019 • 05:00 pm ET

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Snap Inc. (NYSE:SNAP) Q2 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

That concludes the prepared remarks for today's earnings call, and we will now begin the question-and-answer session. [Operator Instructions] Our first question today will come from Ross Sandler of Barclays. Please go ahead.

Analyst
Ross Adam Sandler

Hey, guys. One question related to the DAU trajectory. And then a quick one on Discover. So -- and then I guess, how is the retention on the 7 million to 9 million DAU that you added in 2Q from the new filter that have been trending of late. Is the guidance for 3Q reflecting some drop-off in that user cohort or is that just some conservatism baked in. Any color there would be helpful? And then you guys give a couple of new stats on engagement from new Discover users, an existing Discover users. So I guess, it looks like it's going up a lot. So what are the primary drivers of the accelerating growth and engagement you're seeing in Discover? And do you think this can continue for the foreseeable future? Thank you.

Executive
Evan Spiegel

Thanks, Ross. Yeah, we're really excited about the momentum we're seeing in our content business, a lot of demand for our content. I think that's a function of the improving content quality and also the personalization that we've really been investing in over the past couple of quarters. We're also currently testing a bunch of new ways of merchandising content and specifically our shows and premium content. We're excited about that too. And I'll let Derek speak to the guidance question.

Executive
Derek Andersen

Hey, Ross, thanks for the question. We are pleased with the growth that we saw in Q2. In particular, that it was broad based. We saw growth of cost platforms and regions, which is really nice. Looking forward into Q3, we're coming from a higher base in Q2 and really pleased that we're able to share that we expect to have sequential growth again into the next quarter. This time around, we wanted to share with you guys a little bit of guidance on that front. In terms of what we've assumed for DAU growth in our own financial forecasting, hopefully, that gives you a little bit of color about what we can expect going forward and really pleased to see that we've got strength in the underlying momentum of the business, and that that's going to carry forward and now allow us to grow off of our now higher base number.

Operator
Operator

The next question will come from Heath Terry of Goldman Sachs. Please go ahead.

Analyst
Heath Terry

Wonder if we could dig a bit into, into the monetization side of things. Can you -- as we look at the improvement here. Can you give us a sense of what the profile of that growth is, how much of it is brands versus direct response you mentioned growing advertisers, is that to say that the majority of this is coming from existing advertisers increasing their spend? And then as we think about sort of the channels within that, within that spend, is there a