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
Evan Spiegel

3.5 billion this quarter and average time spent per user was over 30 minutes per day. Our revenue growth rate accelerated both quarter-over-quarter and year-over-year to 48%, yielding $388 million in total revenue for the quarter.

This growth in our community, engagement and revenue is the result of several transitions we completed over the past 18 months. Early last year, we redesigned our application to emphasize the importance of communicating with real friends and create a space for premium content. We rebuilt our Android application to reach a broader audience, built a self-serve advertising platform to reach more advertisers and transitioned our leadership to support our growing team. In addition to delivering improved business results, we have built a company culture that reflects our long held values of being kind, smart and creative. Completing these transitions has established a strong foundation for growing our community, increasing engagement and growing advertiser demand.

Our team is hard at work making significant progress against each of these areas. We have driven the growth of our community by making Snapchat a fast and fun way to communicate with real friends. Following last year's substantial product evolution, we believe that we are now better positioned for long-term success. Today, more than 75% of the 13 to 34-year-old population in United States is active on Snapchat, making us larger than services like Facebook and Instagram among this audience and demonstrating the broad-based appeal of our service. We have also observed the communicating visually with real friends on Snapchat provides long-term value for our community. For example, Snapchatters in the United States, who joined five years ago and who're active at the end of their first year have retained at more than a 95% annualized rate. We believe this high retention rate underscores the important role Snapchat plays in the lives of the people who use our products.

We've built a strong base with high penetration and retention in core markets like the United States and we're hard at work, bringing the Snapchat experience to a broader community around the world. We are seeing early positive results following the roll-out of our new Android application with more than a 10% increase in the retention rate of people who open Snapchat for the first time. Furthermore, on the majority of Android devices used by new users, Snapchatters are now sending 7% more Snaps when compared to the old version, which we believe is an important leading indicator of their long-term retention. We have also partnered with global telcos that serve more than 1 billion customers to help our community to better manage the cost of Snapchat usage and we launched eight new languages so far in 2019, that are spoken by over 750 million people worldwide.

We have never been more excited about our opportunity to build a global community. Our redesigned application helps new Snapchatters adopt retentive behaviors like talking with their real friends, our rebuilt Android application provides a vastly improved experience across billions of devices