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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Presentation
Executive
Derek Andersen

the prior quarter and are pleased with the progress we have made and reducing our cash burn, as we scale our business efficiently. As we look forward to Q3, we expect to continue to invest in the future of our business, to scale our business efficiently and to make additional progress towards profitability and positive free cash flow.

To begin, I will share with you some of the directional thinking regarding DAU growth that we have used internally to set our financial guidance. Q3 has historically been a relatively difficult quarter for us seasonality wise, and this will be a headwind in Q3 relative to Q2. We expect that the underlying growth we've experienced year-to-date will continue in Q3, and therefore, offset these seasonal headwinds. As a result, our financial guidance assumes DAU of 205 million to 207 million in Q3, representing 10% to 11% year-over-year growth, which would be a sequential acceleration from 8% in Q2. We are cautiously optimistic that the underlying growth trend in user engagement will continue into Q4 and next year.

In terms of our financial guidance, we expect to maintain strong momentum on the top line and to continue to make solid progress towards profitability. For Q3, we are guiding to a range of between $410 million and $435 million for revenue. For adjusted EBITDA in Q3, we are guiding to a range of between negative $85 million and negative $60 million, which would mark our sixth consecutive quarter of year-over-year improvement in adjusted EBITDA.

Thank you for joining our call today, and we will now take your questions.