Recent SNAP transcripts
Associated SNAP filings
Betsy Frank | Senior Director of Investor Relations |
Evan Spiegel | Chief Executive Officer and Co-Founder |
Derek Andersen | Chief Financial Officer |
Jeremi Gorman | Chief Business Officer |
Eric Sheridan | Goldman Sachs Group, Inc., |
Justin Post | BofA Securities |
Richard Greenfield | LightShed Partners, LLC |
Ross Sandler | Barclays Bank PLC |
Lloyd Walmsley | UBS Investment Bank |
Brent Thill | Jefferies LLC |
Good afternoon, everyone, and welcome to Snap Inc.’s Fourth Quarter 2021 Earnings Conference Call. At this time, participants are in a listen only mode. After the prepared remarks, there will be a question and answer session. [Operator Instructions] This call will be recorded. Thank you very much, Betsy Frank, Senior Director of Investor Relations.
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Instructions]. [Operator
Nowak go Brian from Stanley. Morgan comes question with ahead. Please first Our
have taking [indiscernible] is on Thanks Hi Nowak. for our questions, we Brian it two. for
have the about about lot to further it update growth of rebuild is, The and any advertiser and to you and advertiser And is or of think Thank a it measurement work you the the order you attribution on return to at new to close full a you. IDFA, first growth you question in and closer we XQ? year? talk confidence. made last on go-to-market challenges Can still in to need Analyst like to contribution couple how areas have least progress seems Day take contribution our second question XQ execute ad IDFA us targets will growth of technological to key around quarters
Thank Jeremi. the This you question. for is
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another the helping about how that, think solutions. so we growth to then we reach every more advertisers platform. which to are to from impression and relevant focus of all-time in measurement guidance is contribution It the active and regarding impression, and number that active And that number optimization continue goal The choose don’t then most seeing advertisers the and advertising saw active on ads to as better ensure adopt to conversion QX And advertisers. of answer for the we selection demand focused give those rates. subsequently, remarks, prepared as high. second the on mentioned really your we on them the And new for advertiser the are our of can Snapchatters have be grow part flywheel certainly as Snapchatter relevant, of our to continues that the more advertisers question on our
businesses, profile so onboard for more advertisers we business Snapchat organically, and broadly. beta tested over course which we bring have XXXX, include more grow the several public to course, that and And rolling and of even can their out experiment of those really products are are on shopping lenses, about beyond. we businesses of and we And all talked the then, And advertising. of question. in excited Thanks outside and create these XXXX it which about AR for
Eric Goldman from comes question Sheridan with Sachs. go next Please Your ahead.
content little and quick know and looking partnerships. Hi. Want get the for question investment on into Thank flows if ask following long-term the cycle? might we product it front XXXX a and what of on the Can are at call. a could you how part back to initiatives and up mean that on The XXXX deeper we you.
question. the for Thanks sure. Yes,
the are reality excited today particular what here lot of momentum in about to really we on around a augmented are is Snapchat. long-term seeing We
So XXX there over million engaging with day. people AR are every
camera all this our I continuing not we using accessible also times, every help now and products and think for them it make their our for Snapchat only is people billion are to improve taking playing with are technology try but retail doing And Lenses camera. what it to more over and easily day. through specifically convert e-commerce businesses help much consumers developers, and to on and in six
We the stand-alone AR that on future. Studio opportunity in evolve of developer version to tools our augmented and just excited see a support And near definitely reality because how last looking continuing year in of about there. first the are medium a on investments of Lens augmented a Spectacles massive we and the lot around our such platform. smartphone glasses that term our build evolution then will released reality glasses So really that and our and
course, So overlaid the building AR and in and smartphone the on of a medium world. on near then, to do long-term computing today the to lot term of future
Please Our ahead. next question Justin from go with America. comes Post Bank the of
taking couple. A question. for Thanks Great. my
of You the ARPU some progress monetized services made lot years, yet. over aren’t but two last still a
So of could a IDFA-related more of journey you. the little could on then, day the about than you why course, refresher be headwinds us where give question talk in are the your looks peers. bit a Thank ARPU and it is maybe less could like you Maybe that be?
speaking. Hi is take these Derek will I two. Justin, it
ARPU, to I from of here. our to think generate and here, business. to side. of question of of expansion growth we continued room And our grow have ARPU related a revenue lots continue most see ECPM lot we we are optimization, content room and the to to the first business with really Today, Spotlight, the continue believe content by still we in journey grow early I our the on
have we opens already are and immense investing mentioned, either today, you in little at not as we camera already our screens with Snapchatters given that our including and monetized have the majority we do particular. AR or currently but to app to all, potential on of day, and the inventory vast on importantly, the heavily we advertising of out And engaged there. map, products the camera are think the relatively AR camera that a every the I build lot screen, monetize engagement
today, over populate for a to to to category of are are monetizing Map, but Map, the the million potential approximately be of working the the On our and an we building on on-ramp blocks new we places the time. Map utility excited advertisers are about XX for not we
there what ahead investing a believe do are is is time, to to and heavily plan a we we us. opportunity see executing which lot capture that ARPU in So well-organized against we in over order of
on question the second the So IDFA-related headwinds.
measuring our I products, business significantly are platform than likely seen of the privacy perhaps with have a at the design our advertising those for business significant for manifesting and ATT be differently impacts had advertising investments. This changes real disrupted advertising have the their iOS us ways. in a themselves were have accustomed And And we which targeting built as impacts changes experienced those platform. of impacts the their on the result, our think demand advertising way our and result, the in disruptive on our including to others. primary of partners by see to as that been we core when results for two we businesses implemented.
believe early because progress we those able been make ad disrupted In our starts a the and significant significant the business how have is still have set working advertiser over that right result, in those lot optimize in time. year to to right began changes We the are market. on focused that progress able of closing also in cases, for were safe were part a able privacy partners, the journey because make than we In more in part and of moment a from first we gaps. way. to of as That The of a on privacy including in headroom said, the right to value iOS we front Snapchatter problem are principles. the before we our And advertising safe platform part nimble, ago. optimization at we how we but many get very in a more deliver
were how the implemented. changes for continues our We believe already results now by the issue the over saw progress to as our measurement solutions. those we and represent for quarter, adopt enabled about as our our were Scan solutions. platform more But to of advertisers. The on business would first-party then DR And second measure Entering broadly deliver the pressing revenue most of need around for impact iOS really our quarter new tools our enablement than results. and enabled end XX% saw for our platform our or to quarter, see we first-party to SKAdnetwork advertisers was advertisers QX, last but spoke we is advertising measurement. the And ad this partners, we that believe of
we but still so have far. to pleased with them made the in we progress utilization new drive and So of our amongst more for have partner, work to confidence why are do solutions we these build
hope we how are bit So and approached of over in area you that this than seeing a gives it I little we time. what context have
Our next from with LightShed ahead. go question comes Rich Greenfield Please Partners.
it. obviously questions. a in what I is maybe look Hi. the think especially But couple under guess, on just One, little surface, say I if I of mean, the A best you could to is good. bit the us help solid understand word, DAUs U.S. going
- spent sort Obviously, about spent want however engagement still have and sequentially been spend wondering of out saw called being the year-over-year. What prepared remarks, your QX. then the to it, of that think I about has about had in areas. and have in And about Meta. there is monetization chain engagement, was side? what terms Snapchat two, saw think in issues, I but talked investors on the improvement you you restaurants in on brand and time I very to As terms CPG spend I supply in of actually headwinds Jeremi first in - essentially in you seen the month what seeing is doing obviously, outsized? still you where the is over think versus any are like And U.S. platform, you XX-hours companies think QX time you know TikTok concerned especially happening last been of the QX brand QX the I through key
a question. little Thanks, engagement. about bit I the talk can Rich, for
is I with what our coming all worked And and product I reasons in really our years products. seeing people family, of the are for beyond offering across to now communicating sorts think migrating then that with user different diversify base Stories, think into hard different are the Map of have over our with overall and we growth of we Snap our Spotlight. to friends and course, just
compete or video we their particular where we stories content prior platform the areas and pandemic, seeing for our talked growth people of a really AR strong their And friends. Map content, are same engagement. as But we we a in about fewer Instagram So our certainly service with see seen Spotlight. video, post on we view calls while premium I it seeing fewer following more stories trends where have I in and and TikTok pertains entertainment, the YouTube are at different more have for from time, the to throughout think watching like bit of some also our folks stories earnings watching we little friends, our
mix So there bit is a of shift there. a
community, example, to able I Some many to when during out of our friends. for been things user we studies, talk with cool gosh, my as the pandemic, our haven’t they say, do
doing or stories less friends are stories many interesting posting as I’m cool So aren’t because things. less my
family. Obviously, So Omicron the we friends a And will some of a progresses. overall, only different our Snapchat about think differentiated to is and really the we our I a was setback bit But have there really our see offer and entertainment in of core that of little with for thing how entire platforms. us. of service not product, products, but across stories all
the can I question. second much Thank for Rich. part, very take And the you
the noted underlying supply impacted momentum restaurant our I our new haven’t and But expected, to about as restaurants continued that and year-over-year strong that what areas, new look not seen take revenue remain disruptions and when as and think You is the excluding from the give at a you be materialize the business of brand in result indicates at and in kind advertising XX% believe those in chain labor issues earlier. areas in of well supply change we sectors, and as year talked or revenue particular did CPG by break that unsolved still it the we labor you year. they down, reality lot grew and CPG
addition, supply macro cases, reliant in have these as marketing. inventory we brands capacity on aren’t practically demand on chain. operational the businesses support many But We plenty have incremental to as, or to conditions just of continue expect by demand categories, their speaking, don’t that particularly this continue advertising with that brought in impact to
but continue support accordingly categories, to and of been some that some redeployed that nimble it We Absolutely categories those they them perform and streaming, to really as take is of and their is teams the the long-term. we many can continue and to facing support things not our headwind that from important for us And train are resources may have the to have verticals, and services advantage may really be great away we categories that to these headwinds others. well. categories travel, develop partners able amongst areas continue advantage can shift to them, be there they tailwind ensure financial for it our Examples are that thank But of on agile to and them we competency invest with you sure in core the of where we take make them are question. them, tailwinds. pivot to grow with learn resources and
Please question comes next Ross Our from Barclays. ahead. Sandler go with
up that I Jeremi, following just guess last on question.
now GBB at impact not So is zone. to of at is impacted kind XX% iOS much revenue XX%? in XX%, of impact other revenue zone, you with campaigns say earlier, we I the negative goal lower a that still actually it second And in when the is have alternatively, if XX% future? expected, long growth long-term is now sorry, DR size this couple and then changes little the is the your say faster that had that growing et is the than the guess, consistent Snap question revenue -- these adopt they recovery the foreseeable XX% visibility mentioned going if Is the area? And the advertisers kind bucket but DR of is that of make And we increase and spend that to as increasing recovered actually that funnel just in a revenue in guys like it better and the from in it you a then quarters cetera these is how monthly winded, that Snap’s I’m do when of to Pixel, look fair happens? Thanks of is with kind that they in right the is that Is spend new business? tools lot. or
as questions is all it those will them. I I remember take speaking. Derek can Ross, of best Hey
the some grew XX% we that, the related of though, a of advertising sectors, them things headwinds I are in be number business, similarly, what purchase and return a saw many the outside XX% large supply the lower those like line restaurants high question likely of goal-based within or impacted objectives, QX, and bidding and DR level, of in labor as growth to at advertising reflect continuing high funnel CPG that say revenue nearly on were in indicating we see But down-funnel is business. did the that to headwinds obviously. chain our install on to pockets continued first of our ones limited to the Pixel various lowest prepared are a And were so brand number be growing DR particular, and business pretty to side, with in-app and headwinds brand did believe categories macro in and our that. the we purchase at the app in cases of in business from as think around our were strong particular, At better was labor mid- of similarly year-over-year, factors by couple remarks, And how we So to such app-based some would contained results supply a contained a sectors strong, that year-over-year. impacted business changes, those by objectives chain then to where by our we and relatively for underlying of see I directly that really return and face and factors two a Importantly, the that really business. was in momentum rates think faced And Scan, platform of in a components just across mentioned it any top results portion largely of we that impacted there of anticipated campaign. most the QX. limitations And thresholds some we including iOS I fair are the
those so. as enablement prepared so And of limitations in measurement we there, that doing are work of that threshold measurement the I is help mentioned fill solutions, remarks, our to there including obviously around first-party in gaps, which the some of
So think elevated DR are and same at big rates. changes. a the businesses we the of platform those our elevated of at and you the of rates can factors and with business couple about big time that overall, across the growing those dealing results macro business when parts growing parts see at But headwinds the I brand
pockets minority got business are impacting have the side things. that of you so of the and And each
that that of hopefully, pockets of context hopefully, the is the business to. there. gives is Thanks what you limited good sense and a need So and what gives very you happening much it you
ahead. Doug next with go from Our comes JPMorgan. Please question Anmuth
Katie Hi this for Doug. is on
users. just want I to into First, dig
again improved Your annual and XXXX DAU in both net in adds XXXX.
about how saw relative curious levels peers outcome called visual in XXXX? is in others experience net Then social many thinking communication industry. differentiating space? and to second, I’m to intensifying have Thanks. I’m How adds are So curious your efforts into the the just you competition. views It the your are feels broadly like in in product regarding XXXX you pre-pandemic updated relative
adds of part the first our terms that area and in the question, about net thinking On you in growth are of specifically I in DAU sector. believe, that
plan So to one, community to out the international our a at and we Investor that ago, year little I playbook globally. investments make a grow over we our laid Day order in think
of over execute have our including marketing and execute investments In including partnerships content, creator and our year, as significant better to fifth against and continue community, this continued million plan local XX plan XX% note last a particular, result to total that We DAU. results local that that. against would quarter seen local building strong we I that consecutive of in the growth, year-over-year was
good So community there. on base the momentum
our over that community time. playbook order to We against of the to products in continue in execute platform to support our invest our and are growth and going
that gives are So about we hopefully, a little what there. perspective seeing
and YouTube all already Instagram little we and just been. really, to competitive were created bit has Snap, Facebook It a existed always can area. already and competition, really it. a big. It is we WhatsApp how about and think highly I products speak those When
we We product has in see our took We Spotlight to world, into best day camera. so And themselves our all our so really able want identified our what can innovation a to we through grow people And Stories built learned highlight that to people happening built Snap of our continuous more and course, narrative of really is early about community. people on product then that And been that the have to always recently, Snapchat. their Map. on express fashion. the where want share that around focusing visually through we built and
augmented is of believe where future of growth really of innovation as the is to investing evolve a are reality only Spectacles we products tech and our are a we out so our terms innovating we unconstrained over our about the products. of and excited lot continuing and And way We we the our the in that lot very continually compete time. that in evolving building long-term And term to industry, where our longer are is like platform. new are AR
here And as the continue win So in has. really ultimately, ability it our long-term to our going momentum. are we to is this ability innovation, down to to come product about excited always
from Walmsley Our comes with ahead. question next UBS. Lloyd go Please
you one and pick the on seeing advertisers still through of in platform Thanks. is terms you client guys advertiser with perspective, the Two up advertisers Are change side. terms it mostly on it an catalog seeing basis? conversations maybe and guess, revenue are do And amongst growing questions on second I self-serve or bought seeing kind advertisers? of how retention, of from and are of then kind what adoption? come is AR the DR first, advertising lenses you Great. what shopping in keep that spend awareness
I’m we exciting that brands, that. for are we asked you their We represent Thank against strategies And much certainly are it. that businesses, they revenue delivering our build opportunity. long-term augmented to so and ways camera for you with question. results are the most on seeing very believe starting the reality and AR that happy
delivering the fully is or repeatable. now reality thing choose measurable that that Snapchatters immersive augmented about is both served businesses something versus passive I to that think with return and a that on great them it and experience it a to is is investments engage is
reality. in is response your more that point, that advertisers. And incredibly is for is more to direct invest that augmented So and something important encouraging to businesses
been something launched are when bit right moment, this seen brand it over for more thing, But businesses that reference. brands the initially to about more time, that a as little build but it experience fun their next as an just an evolving we have in kind we that format, way that of think businesses. was shiny can their AR advertisers, was a You big ad than grow
try we types shift of are of augmented e-commerce the particular two those trend. augmented are seeing And secular lot down, doing really start for product, in to a us try-ons, that, reality. ecosystems have that. it then reality with imagine you to to and right grow same allows to obviously want web part on with invested advertisers the think, when see always and is results that is that Ulta, results as on manage are we e-commerce. a into and likes builder future people incredible these who best get measurement happen. to of as They particularly about alike so advertisers delivers start at remarks, can And And the deploy prepared with talk alongside we capabilities the grow, easier of a which These continue solutions. to be advertisers larger from lens really as results a emblematic example reality, retentive on utilizing ships MAC highly heavily AR that create just it MAC their are example, to is AR see We continue the will about experiences. work augmented they the it to starting it are transforming cost look our great those, to incredible heard with I per And results for make can like a seeing to X.X tools of companies results it building AR was consumer-centric and using you from we million of like excited tool, lens the of that
comes Our with next from ahead. Thill Brent question Please Jefferies. go
mix you. the Derek, on production versus a quick of price for of One couple growth. ones the
team on Investor just plus us could you gave are the revenue on But how in to growth. give what at the thinking long-term seeing Day ice and you If everyone are most commitment about realizes that that you the XX% you goal Thanks. your goal? is that thoughts for and short-term the And there. secondarily, still likely
Brian, the it question. Thanks is Derek speaking. for
ECPM year-over-year first, were the We grow are which XX% pricing rise part as ECPM. an several the still output metric in to can of I At of really this our at there room and terms we stage units, in CPM, ECPM rising a We but that put sequential our forces they think growth. level, we obviously, over significant of downward driven and influence at believe competing QX. to many in and many we have think, across In year-over-year, demand. observe have did continue of CPMs on ad we by in impression high up least growth, pressure influence
is factor such better XX% rates and community one or our five grown community So growth of quarters now. at consecutive for our has in
the monetization. stages application, our we each second others screens, And about earlier our is map, their opportunity camera, of and monetization evolution engaged The talked expanding these today. highly levels by that different around are and potential then inventory including expand areas of Spotlight of among there to the of
we camera the in feel we so the monetize today the are excited our don’t not but do we near-term, and ARPU grow to advertising are long-term map, investing today, capabilities potential about are platforms very the the But screens We there. to begun those and have for we investing expand time. to urgency and to over of the in are heavily yet inventory spotlight these for and monetizing
of On ECPMs. tends the optimization which response and other that this of business, direct on equation, there is to pressure in utilize and measurement upward us side inventory put improvements efficiently, our our can help to more
So we most CPA each the for purchase and the Pixel sequential in example, in our despite of observed a sequential rapid growth demand recent GBBs North those. in for in decline America, app install average both for quarter
has or is to advertisers attractive and eCPM. adapt for time So learning us on important return solutions optimization and and continuing evolve to helping over impacts also deliver
see bit understanding dynamics an gives under over hopefully, of how there we hood on the the a So you little that of time. pricing
we next of intact I say building we the believe that years supporting remains the result, described the remain potential, thing our as a over opportunity would we the can I first longer-term Investor And at the here we to So we blocks are go our longer-term business in unchanged. as Day. continue think where them is with terms believe few
we is blocks, reported years. of growing than for community the So at rates example, on our the fastest some more four building have
advertising have to talked of our a to of most have last across about. the attractive the we penetration platform opportunities continue just some longer-term We audiences But be we path as the that to in the world. in significant met expand hard-to-reach deep line. and And to was I monetization markets we as never said is the screens in ARPU to quarter, when expected the opportunity potential straight to longer-term in of monetization getting continue
changes But revenue as over a have two-year on as we we that as low was navigated now have a macro pandemic. and XX% and headwinds, as two-year top of delivered had line We our [XX%] period, growth CAGR XX%. year-over-year where through quarters way high platform revenue as
continue we order that a well-organized deliver really all to focused in believe going this, on So are been see potential we what against of have ahead. on be we throughout to is and that executing to long-term plan we
and context So gives this you we see about some hopefully, we ahead. how on think that what
you session. Conference session as Quarter XXXX as Call. attending for This Inc.’s Thank Fourth question-and-answer concludes today’s well our Snap Earnings
disconnect. now may You
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