Earnings call transcript Q2 2023

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Operator

Good afternoon everyone and welcome to Snap Inc.'s Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode.

I would now like to turn the call over to David Ometer, Head of Investor Relations.

David Ometer

Thank you and good afternoon everyone. Welcome to Snap's second quarter 2023 earnings conference call. Evan Operating Executive Chief Officer; are Jerry and Financial today Chief Hunter, and us Spiegel, Officer Chief Co-Founder; Officer. With Derek Andersen, to slides, to today's presentation. refer our Relations at Please Investor press letter, investor investor.snap.com release, and investor website find

forward-looking these call are which we to no forward-looking of statements includes assumptions materially from update based may obligation Actual and results This differ our our those as statements conference on today. expressed disclosures. in make

results today, about to statements, in information For as XX-Q, factors the titled Form these the cause actual particularly risks recent materially that forward-looking section differ more Risk please press may from release as described to refer Factors. most in we our issued well

as filings taxes, Reconciliations release. be compensation in our SEC stock-based between the Today's of and note our include to Please expense exclude calculate call. call discuss discussed will we two today's well figures, found measures. both and all the non-recurring payroll press refer when non-GAAP any metrics depreciation GAAP on related we that will with understand of and how they can today's Please amortization as to the charges. and

turn over the like Evan. to I'd that, With to call

Evan Spiegel

augmented the you joining all in everyone strong Hi thank and of us. second We XXXX on our reality. for growth, community, leading revenue and began growing quarter focus a with accelerating our

are working total increasing of engagement content to million number time in deepen XXX and daily to grew year-over-year. watching community we our users globally spent Our and with content active with viewers content the platform, QX,

retentive and advantage that friends and build services between across is has engaging on strategic to platform. visual a focus communication Our our enabled us products and family

priorities. focused growth, higher rate a three key achieve revenue we To are of on

investing in and sustain engagement. our growth First, community deepen to products

our direct deliver our spend on for in measurable advertising heavily to business return response partners. investing Second,

diversify revenue of sources new to business. to a more our resilient growth cultivating topline Third, build

ad and year-over-year drive our of made click-through In platform unify conversions. X% in-session in service experience an of year, to quarter-over-quarter. QX, $X,XXX to our X% generated our a QX million revenue ad of to models more increase the We we decrease retrained this of and changes across

In QX, optimizing model of machine leadership spend, efforts. we and through and for learning ways updates results new for toward measuring our advertisers infrastructure improvements, progress advertising made improving and new go-to-market

into to encouraged with period are record this to time We up that advertisers improved compared retention same than is improved through in active translate progress XX% year-over-year, to the beginning see more and QX, advertiser year. last results

that Snapchat+, revenue exclusive, than our experimental, made offers features, now and which service subscribers. subscription diversifying We X progress pre-release our more through million has

own AR We their progress we Services, are and making on with helps sales excited SaaS use and our drive the reduce early offering, returns augmented first reality Enterprise are which to platform about our websites. retailers applications

to our My globally, a we in provides and with began out growth connect rolled AI. Diversifying large and recently our My messaging of initiative to AI is and businesses we conversations help engaged AR revenue foundation important also strategic early testing an in strong technology We sponsored leadership community. believe and links our

a levels revenue of rates cash We path better, our flow with reduced or to investment build are break-even growth. calibrating to even free

realizing with critical invest opportunity areas are a perspective, the especially reality. that long-term to augmented continue will in to of We long-term

the our content and and the advertising deeper infrastructure content our put by and personalization improvements signs short-term, engagement partners. have on our ranking there ML for downward platforms strategic are to cloud-based pressure that returns are on community investment in with stronger investments in leading our While early ad margins to of

strategic to to only acceleration. drive where line order and in is it scrutinized further our achieve revenue top have to particular We costs priorities incrementally necessary our in operating invest

reaccelerate to our of our business reprioritized our sources business, and strategy Last investing the community engagement, diversifying team, improving revenue. in we reorganized advertising direct by year and our and out response revenue our growth initiatives, growth laid

achieving While we content our we the demonstrate we return community direct validate subscribers, Snapchat+ from and are established the far are more aspire, growth we growth that have strategic improvements believe engagement, response the and X still in seeing significant focus. investment early revenue growth to and we in advertisers, to on the progress for momentum million which further of than

Thank we our Q&A session. will you, begin that with and

Operator

Thank you.

line question first We will Mark session. the Instructions] Bernstein. begin [Operator the with of Shmulik now question-and-answer is Our from

You may proceed.

Mark Shmulik

Yes, the thanks questions. taking for

imagine bit but And guide, So about just while, think were the the sequential into the on giving more puts a guess what's hoping just how get guide? Can these guided I investors for guide some now? of a share you improvement. and in confidence I more takes Derek, this formally to that is you've to first that time you

a not a getting really back ad kind up longer-term easiest stack lot Thanks. historic active then your many more of new impressions, What's lot of advisers bit ad are to Is these getting you ad were about kind as wallet like the And back I your letter, advertisers guess to for the products. rebuilding you the lot, double-digit the it or growth, and focusing follow-up, server, to to accounts focused launching still your buyers rank? talked back? a think on of a a getting new to were. of major way ad if major where Jerry, adding sounds they investor about increase still It in

Derek Andersen

for of you're note the Hey, very it's that I'd Thanks speaking. we've right. guidance formal question. not provided beginning Derek the And XXXX. since

approached reasonably providing us for see visible the downside that the trajectory do and attainable the we And the shift reflect historically, that in at we've that And that on sure think tried we're that including confidence reasonably the to we've make big increased downside, guidance, business. formal top including about then quantifiable We've of the is we're the that guidance upside our I sure think in thinking business. end, a of when on making is to an side. does again. I begin one it So things

invest transition enter drive our as we improved to is performance platform. QX, we of in a So, the on period business as ad rapid

we've You'll investment rapidly engagement be which content infrastructure in my will key of support to as monetization each well is note and depth or input the really time. a of as ramped AI, to monetization over that

we're conversions. And and encouraged. year-over-year, in given than XX% seeing the year-over-year advertiser more retention and a progress we're We've pretty there, active lift excited up purchase-related XX% advertisers higher seen active

So, these a revenue we're confident input to over that time. investments key are growth sustain increasingly

platform impact immediate said, precision. to That how continued months is ad the performance, demand and topline more difficult with and the these investments ahead in will the predict advertiser in weeks ramp growth

In visibility remains somewhat advertising addition, of forward demand limited.

We've that quarter and on such as typically that demand, seen got to a CPG we've other forward somewhat to weighted. difficult continued in back-end therefore, to sectors is little advertising and calibrate, strength unique or are make restaurants their challenges some and or bit challenging visibility face continue more Well, the sector environment with verticals a macro travel. especially

us QX, upside the reasonably flat of of towards on attainable we negative range see possibly that end. drive guidance for this And a could the growth includes calls for range a and the low basis. all So, think these between risk year-over-year we X% and

specifically guidance set how question. for at think while it that for we we other So, and of the I how the a over a I'll good Thanks arrived about is context this it we for for given one. it haven't generally, hope quarter. turn for done

Jerry Hunter

Hey the Thanks Mark, for Jerry. this is question.

mostly who North kind customers had of history adversely the you'll were me a in of those that in bit America. concentrated on and just by see little on here. most Let America, of a small those are give we changes that's disruptive number They impact We North you were changes of what's made. going pronounced why impacted

note in impacted things over to the advertisers of is of prior half the have years. were to recovered one previous levels their that But them spend who

of back as lot takes And what them we're so get that learning advertisers working to level make remaining that. those well. We're about to advertisers we've it progress to and with made successful these with a

or the we're do feel confident I pretty taking. about comfortable direction

advertisers, importantly, more a year-over-year advertiser we which been active where of spending number XX% And funnel think we've lot time. diverse a are set -- seeing Derek of spending I up As advertisers active spending optimization, is our and year-over-year. seeing in are is we of lower more on most it's we're the mentioned, advertisers

Let increase we experienced excited in the when this to me that's doing and grow space, to also of just share happening team operational leadership focus, we're work team what ago about kind you pretty very and and here. we've a business, of sense about drive wallet got the A this year grow I'm give restructured more demand. reprioritized the

seeing Mohan progress progress joined Ronan First and Harris, leader very EMEA. see that APAC. you'll that we're that, we're was in after and shortly Ajit good seeing in joined some

their We've started space Harris pretty got partnership their they're our excited hires joined starting couple is space, of Patrick in global about. in and teams. as action Wilk I'm Rob in and recently We've a overseeing take that to the Americas working

as look of bringing prospecting updates know top let's these for new our starting or revenue. improved clients in ad we for to we're our see, we've that opportunities So, -- what second in are giving old. clients And into addition focus is the we major platform half, the core processes, clients new processes accelerating see, these new to and

that both in customers wallet improvements, relative and several of launched positive market process verticals We growth existing we're operating in. showing go-to-market to results, which are increased with share

couple iterating for need implementation back advertiser program that and spend. the is, systematically going with that we've automating A previous right the products. their them, for of can working seen customers which systematic things where signals successfully easier advertisers means existing doing. for forward. they've just and on that We're also campaigns, with those ad That a then improving the steps we success objectives, up we so are make them, ensuring campaigns these working making scale our are sure of set we're other the their sure implementation are on We're again, got to with understanding

to going Thanks in and more the that for demand that is this and just improve a that question. effectiveness to more bring is doing I go-to-market the the space So customers of efficiency things space. to few we're think

Operator

you. Thank

Our Greenfield Partners. with next question is from Lightshed Rich

may proceed. You

Rich Greenfield

headcount think sort for taking feels it the about base Thanks like there's I I disconnect reprioritizing overall in is. where the Hi. is Evan, the about between company that release, thinking guess, because -- everyone of guess employee is there's the the you like the talked question. this of I thing

people important reprioritizing still there Are headcount a some very on still the and even even on many versus you've and working five-plus there medium-term longer think frame revenue are some are versus is in employees is or the And people but You are much today hires always of which mentioned side question seen Elon that work them, like you spotlight of initiatives, employees We've Like I seen I of it, how terms of generating advertising? Iger that lot some think versus decisions focused spotlight the making cuts, we projects that content term working? X,XXX revenue? versus big like have projects. growth? many I you year in hard and love way could not recent how near-term how spectacles Bob AR are think is, made just like offer you not like employees can what

of today? your on how lot Like optimizing? revenues X,XXX Because seems after hard does that like ours? declining have decisions still balance? problematic make forward? reacting And changed to Are how with you still going like investors you do What you have people stocks done for the a given headcount look

Evan Spiegel

augmented the clear today Snap really between Rich, the And we're for right have the that balance for growing and a with planting And how our the really from we future means course, and Hey so been to We've also across simple for that business question. reality spotlight. we messenger long-term. of a always have optimizing seeds and strike evolved engagement diversified thanks stories content map, core that and, and being much building to to that's growth. we've platform

around compete with engagement we've monetization focused far It's way than Snapchat, on we've way the is able why As on you been world. we're to companies the which the more able innovation. are, that is really a are grow to using people input than million service we XXX to bigger been fundamental to our know, only

future. become these but for of as course, sometimes platform content our our and, this monetizable they new products business case And in we engagement, are definitely And was the well. immediately, AR as for the grow monetizable oftentimes,

by rapidly of with community difficult the reduced confronted a X,XXX more we scale XX%. about approximately year at we decision the team XX environment ago, I that hadn't support partners when than and that size sunset So as changing partners, made to some up X the yet our our we as people. content do economic products a and team mentioned, we of people as reached and And well of a million advertising we

revenue a increased but think we thoughtfully we especially the on you and long-term opportunity, manage lower. the So given I should per actually that cash financing case invest make our wanted dilution has our our headcount trended have size flow really and price to costs could more, share basis, because of

replicate. initiatives spectacles like build example, things that really now. build focused today longer-term core on revenue that are AR a that right to technically core So and or strengths services, represents for by in Snapchat more to our That's complex and our making And enterprise investments platform. we're engagement difficult AR in on on driving investing way

long-term in these than totally core more those by new core extension focused make bets. represent So rather on efforts investments of an to AR, our we're because able efficiently platform building strengths

course, perspective, more of we could headcount a more from of I wish initiatives. long-term some while in So invest our

to I that for near-term the term. balance will the setting revenue the have today. growth to business revenue up sustain simultaneously think need over where growth we we And accelerate really longer right at we're

sheet So navigate this period. to got a fortunately, challenging balance we've

So we the we opportunity to sigabite headwinds. as have don't some our longer-term tackle shorter-term of

Operator

you. Thank

Anmuth next from JPMorgan. Doug with Our question is

You may proceed.

Unidentified Analyst

for for taking question. Hi. Katie on This Thanks Doug. [ph] is the

dive I third feels stepping First, to again the into like wanted into infrastructure just get cost. materially It up quarter. you're deeper the

what it's a how walk higher towards. And mean investments? thinking in Thanks. of there investments us we now So how again that these even curious I like off? of are that than if about just couple So there can a you were ago? things feels is calling measure paying months it you these level are could of through terms change

Derek Andersen

it's that Thanks question. Derek. for Hi,

in investments areas. infrastructure the So first making substantial. the We've into in are number we're a making investments here near-term been of noted,

And so I'll you for that break down little a bit.

order more with then content our engagement innovative in are platform into investment for ad a to platform, make which driving platform AI, like products second, our the support deeper drive advertising portion the ML that intended the on other to of order platform. into First, into products performance content lesser and product in to My then and of depth and

ad a But as investment related mentioned, the depth monetization like substantial platform content I of and into a directly media going of to portion things engagement. the more

ramp over shared that for last we in investment we the us we to as that past made importantly, think I to forward. quarter, that a very results wanted quarter big the see order from investment sustain in

a across investments. mentioned really I of bit we're earlier, we're so those results the this And we're encouraged from with investment early putting in, of little those seeing each but where areas

us and retention the to with we've that made happy of into higher So QX, XX% ad investments making there. in conversions that active whether XX% beginning purchase-related platform in investment important and makes that's we're the increase all are signs importantly, these advertisers, rise saw we pay-off really DR are the in the the

ML investments support engagement started depth content the on side, ramping we content to in sooner. and of Similarly,

And longer timespan example, And as you so a can period most quarter. in was tripled year-over-year that's more there, a see, than ramping proof over of time. the for spotlight point recent that been

So again, the of really that pleased in investments there. with putting we're the progress

that some intent ramifications conversations time. shared And that as investor interested about we It's products provide in. monetization smaller for are high has But early AI with investment. and our of we platform course, and and it's for our AI, a letter to of that community services volumes obvious over I My clear really ad signals is data portion have the of I our in and -- mentioned, My seeing points recently

the make accelerate seeing given here expect results related in related today, a here, step-up and do the seeing things progress we QX in further to we're to very that to accelerate investment seeing monetization. So we're progress in what we're the on directly particular, to are on

was $X.XX about for our the QX, we've between a in step-up guide per to you and for on look $X.XX. range QX that is $X.XX shared at if QX So, DAU $X.XX of

similar QX midpoint at QX. we would in it that saw of that a So, be step-up range, the in

carefully we that forward, ensure investments to over we're a As productive incredibly reasonable calibrate both continue to to they're affordable time horizon. move going and these

Importantly, lead that per in QX sequential increases simply will I observed the in for to infrastructure similar and or DAU wouldn't QX in that assume QX we've guided increases periods. future

on or We're sustained entirely going we to the returns results acceleration topline. grow then will investments depend whether the on measure And we particular, current levels, here carefully. shrink, these spend experienced are at and see in the forward in from the our they from

is of Investor we positive into shared EBITDA sort charting make cash reduced committed term at medium Day. towards The targets accords note our and free and here we flow at that growth adjusted term remain even and margin profitability last the I'll longer to rates

been the investments a Today, of on cash period flow we've months XX-month those transition $XX our incredible about ad trailing $XXX free XX to million. over flow deliver carefully I with that we've cash been trailing think on able positive at able Today, at to operating and platform. balance even million through

So, going that we've we'll careful horizon, been and very to to a over time continue do reasonable that forward. balance make

Operator

you. Thank

Tom with from Our Sandler. next question Piper is Champion

You may proceed.

Tom Champion

afternoon. what some are Any with briefly speak like relative thinking if adoption over progress Thank I'm bit helpful. I'm app DR be Where be would you you about implement? a whether good last verticals Scan And plan the of downloads? comments cohorts you Can you there just tools? and you. year, X.X might lost that you recapture on helping the or gaming Hi, and little hope to today could wondering talk to your

Evan Spiegel

for excited we're the so on year, Tom, making Obviously, thanks last priority restoration. the DR our has tools. been We're over progress much a question. signal huge Hey us for really about the

API like pass a privacy in advertisers conversions, way. safe integrate can that solutions creating back to So, signals

what tell they're integrated finding advertisers I'd drive pixel more now our seeing the especially And have is because able correctly, you, is solutions purchase the this is strong really and focus on side right really when strong e-commerce our them configure where momentum. with results. go-to-market we're we're some case and to

been to our we've go-to-market what efforts. is out do scaled So, trying with

that dashboard we configuration find can be sure as much to correct for example, clients privacy in a definitely a make a advertising new safe helping are released team consultative with for for and we're advertisers stronger able errors us That's approach taking we way. that So, our partners, sharing lead can signals results correctly if to more to these well.

So, purchase-related I advertisers think of lot seeing conversions, for we're and a there. e-commerce progress

On in advertisers example, the focus be big for of app half app, example. year. value their do, like will to app side, that back piece we'll will want we optimization, lot the money still think there's of level be of for fine but able that to spend where a for users, against are and to a they there us work be optimization grain the don't offer And of tools in a optimize today. some Scan that,

So is for I But us. delivering we've think focus we're to results conversions is the seeing models advertisers. e-commerce the momentum work really side for our -- done news good is click-through app on strong a and will on update priority be and the real some

there to side, of think we've key got the advertisers. work by end as more year. of there's e-commerce little on clear getting So market And path the do, but to for app the then go-to a our it is a focused

Operator

you. Thank

Our Post of Justin America. with next question is Bank from

proceed. may You

Justin Post

you. Thank asked. couple been these already I A of questions. apologize Great. have And if

think can there year margin from kind a that where level should is gross the a on user of gross a margin now? or of or off? per cost gross years about level level How two margins we First think you pressure,

Thank Spotlight. wondering this How And ecosystem? needle to at then more as if related if seeing moving of than stats point, really on positive usage entire you. or usage the much as the interesting Spotlight. you're trends the that for is that per flipping offsetting I'm far user pressure stories overall

Derek Andersen

Hey there, Derek it's speaking.

expect articulated the I what the I recent gross Investor think while would to margin say, the side, and had look margin our step-up really QX, we gross investment expected gross infrastructure long-term, a like And margins infrastructure to at Day. step-up on we on we've medium pressure, investment expect what on I as in margins. make QX, another substantial in we we changing don't long-term for medium that in view in and substantial and

seeing Snap direct support the be to opportunity a contribute in growth other AI right advertising top over invest to engagement, direct line and opportunity of for is a is of the business to invest about as opportunity need well in to a directly infrastructure in to where response margin scenario. advertising the performance gross line understanding story contributes growth going business products and intent in which and infrastructure a we drive we're significant scales like reaccelerating to and top how our will to engagement. Importantly, significant our to our now time, as interest, also depth see input the which innovative my What

I've progress certainly sustained shared addition I in contributing talked about is that reacceleration the think investments time So infrastructure in But business already this our period to those to because won't about what show longer-term here our QX of significant from reaccelerate. you're double confident And we're immediate the would though growth. a early top infrastructure reaccelerate line investment we're we're the I've it business our to support transition I here able the I economics will order line. line top in expect as phenomenal seeing seeing towards at top the and length in and investments. to that the step-up on we those reiterate still unit infrastructure metrics to sign of incredibly really order is in -- down in already the how the a are

choppy Spotlight. I in to top this that is it you to to the better reaccelerating margins. you a So second the but question there over realize on anyway, hopefully, we take near-term, very the Evan turn And gives critical on had line. think understanding I'll it's

Evan Spiegel

We're reaching about much trends and the Xx viewers monthly driver the Obviously, excited globally, Spotlight about time content the that, quarter continue XXX and spend and million a to business. our has been of for seeing. that time we're meaningfully, Spotlight users so year-over-year. grow up in active content spent content with Thanks really big question

excited is than friend the stories, US So that we better viewership forecast. we've we're by trending definitely had specifically, essentially the In momentum. are trends seen

So at viewership the seeing happening the slowed. rate which the has is we're real some time, with same decline at momentum Spotlight. And

closer sure I'm we and exciting in in So not is we're getting think if yet, which aggregate, I right positive the direction. really flip the trends are moving

So the than and globally, driving as expected crater a lot Spotlight of of combination for momentum performing in stories momentum lot had us. of a US well, content in friend we stories a better then and

Operator

Thank you.

Ross is Barclays. next Sandler Our from with question

You may proceed.

Ross Sandler

guys. just questions. two had Hey, I

The user. per hot first on of cost the follow-up topic is infrastructure a

the there's on model, with products the rebuilding a content off lot And AI, the creation, going which So for my XX that like or just the et the some ad then lens crazy weeks of here ranking like there's model, cetera. building of you're last for so. took generative AI

hosting reflection So on projects is bucket, based my going uptick think as inference like first on to are future second those of then so for or two we per bucket, which usage? play that and about all you that's going kind And these the user. AI up, discrete is out that of costs how expect just is a do the meaning cost buckets the

I for over second to new little see of been guys they've question you a now think regional is have a three quarter. heads the then And sales,

new team? really start Just do Any confidence to the in have on back getting and attribution on some more how that? move And feel revenue? the needle large these function those just of do you bringing that success time you to cut who back around organizations a advertisers the or about is expect sales of thoughts

Derek Andersen

look order Hey, the depth the in I'll an about speaking bit the on advertising specifically take here we're content we first QX speak it's platform, incremental engagement. and making we've drivers to sort to investments the of magnitude. the And both focus infrastructure. definitely, drive tried in as Derek to is in But QX speaking. forward specifically the to that of of

investments my mentioned there's in investments smaller. Certainly, And and lenses other specifically we're investment The so the investments revenue to ad necessary them. in on the term. the The to improvement AI, mentioned opportunity again. as well to platform the the which on that infrastructure drive the drive here other other are drive there big in drive up contributes engagement, to the much there is ability And making we're making of you focus you that investment grow then directly one depth and products. longer things is of investment like of over as to is inventory which

In think to how terms and the that continuing spend. economics monetization overall think over scales the manageable so smaller a relationship the we time, intent I to my personalization as been between can relative ramp of watch I in it's cost. AI mentioned, far, component it of with unit so contribute far the carefully, but And we're we've how unit and pleased been and to

with there turn I'll time. we're understanding that experiencing it there. ramp But on. monitor over context general. carefully that comfortable we'll for the question. the second So that the Hopefully, part is going and helpful And not it's what we're so of we're of seeing focus in over what's the far,

Evan Spiegel

Yes. I presidents. our chat little bit guess, regional about a I can

the So We've to of been them to a taking really He's much in there. pick market us ways favorite. go nine longest EMEA. made the around those identified overseeing Ronan for role actually of ago has and started progress better Jerry and lot a applying learnings, doesn't about have been world. to months the

the Rob quite been as And business here long is as here in just not a for APAC. bit. but Jeet Ronan QX. He's in leading Americas now our started been in

to And of where think bit building couple course, in changes understand a really to of with yet to prior got spending the to the been out making levels the we've is. vertical has So a Americas. plans work opportunity Rob not time of do I quickly spend. who've returned of advertisers

there actually cases, performance dig saw are advertisers we and they who the have reasons ever are kind are bucket. who varied that much considerably as pretty of think spend their some than in seeing into better ramping I with competitors And before.

for been a on to building But sure going focusing business. importantly, we've look and basis So these our be really on have base lower goals funnel really correctly. adopted to of advertisers a solutions advertisers diversified we're trying as forward, more is make case-by-case important debug we think because I more our

seen I in Rob we this thinking about focused a And base. more how to do of also clear Americas, our -- a have but of with the it's advertiser advertisers strategy the to torso is build our we we because need know lot out diversify lot success

priority that real know of really a of be and of But get growth our business back, I regional to we're course, doing side. broadly, team. but I user just terms taking it's just step been in in revenue, So also more for focus think not the and everything the on content this terms will on a exciting partnership

that growth soon. translated gratifying and and to in excited results into America seeing focus we'll hopefully North really So has be APAC, been to in EMEA return

Operator

Thank you.

Our Eric last is Sheridan from Goldman with question Sachs.

You may proceed.

Eric Sheridan

can landscape, How engagement, do mixture of rising in already much. utility a talked the see to opportunities look utility other of rising taking continuing lean maybe one today it And invest the been you your just out strengths elements little signal term? asked. thinking the the in. potential your your sort broadly, sort so are competitive advertising of that view medium for Thanks side But app Thanks question. the squeeze we've companies. the call, to where capture you as competitive to monetization long you competitive and consumer what landscape and vis-à-vis I'll bit for or measurement user growth, about and the on A produce just over on but lot's about fit into? as of behind of

Evan Spiegel

so other visual for Thanks family very the much in use strength really connecting Yes. market, communication we the our And We're frequent around visual about unique this excited question. build play we businesses friends and role communication. that in it. with to

and and core this increase think we more Snapchat providing communications social platform actually also and comments. of like it's features this that to to have media but our use for that's never popularity, more provides. for deeper your And has provide. only AR our with content friends feel that platforms to, actually So you different compete and about become utility can important all on of people public more friends place more build or course, case like to think as It's ways compete key monetize style family the important communicate, engagement, platforms relationships they different And been really we focus likes where family. platform, for

build really play So we strength, to anywhere that that we can momentum. can

their share they example, videos time somebody about. of And love Spotlight, that So, more to friends better that able with them more share to between spend think viewership about friends. with content drive one drive we've to and that the sharing able care them over or is ways laugh been we've for time. People enabling through of been and video a spotlight makes use engagement to of

strength utility people our infer, we'd and, with as content those advertising to opportunity with the we'd real course, AI a saw optimize we play were have an chatbot, we experiences MyAI, based well. MyAI to with improve engaging similarly to more with. have by to also historically interested were of they ads to can in provide business across and which to signals, intent communication in AR what using performance our but clear rank very think I intent better signal content And or are use watching on they platform, guess

relationships for special a place business we and think family, really over really friends time. I that built our occupy we've So continue between around and to supporting

Operator

you. session second session. Inc.'s Snap concludes our today's you as Thank XXXX earnings well for conference Thank This quarter call. attending as question-and-answer

disconnect. now may You

Snap (SNAP) 25 Jul 232023 Q2 Earnings call transcript