SNAP - Earnings call transcript Q3 2024

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Operator

Good afternoon, everyone, and welcome to Snap Inc.'s Third Quarter 2024 Earnings Conference Call. [Operator Instructions] 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 Third Quarter 2024 Earnings Conference Call. With us today are Evan Spiegel, Chief Executive Officer and Co-Founder; and Derek Andersen, Chief Financial Officer.

Investor earnings at slides our today's to to release, press and refer Relations investor.snap.com website find Please investor letter. includes today. call our conference forward-looking are which This based assumptions of statements, on expressed Actual differ we no to results obligation forward-looking our materially those make disclosures. may update statements, in from and these

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

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

Evan Spiegel

thank our QX, continued core line building active our revenue call. Daily users make our sources an for everyone, diversifying year-over-year. we revenue improving our you increase long-term our and in XX Reality. QX, priorities toward million progress engagement, In on community reached of growing driving Augmented top Hi, to of vision and and of joining XXX depth million growth for and

XX% content of subscription viewers business to direct watching $X.XX made time with and our progress with increasing advertising content our continue billion. year-over-year business total with content the we engagement number The spent platform We total revenue to Snapchat+ growth to of have a contributed our and response growing year-over-year. deepen

machine lower funnel to go advertising effort business faster, to year-over-year initiatives. DR doubled total our Annual continue way In Snap to our innovating advertisers learning bringing Developers in our simplified deepen number hosted in to on an QX. and with Partner DR introduce to our of better Lens funnel advertising together initiative We that we as Summit evolving are announced our QX, a meaningful lower version more Creators grow grow make progress Partners, a and the investing market We active than new business products, and to we new serve our will in Snapchat We of believe community engagement. and further our partners. we

placements, advertising fifth for that are Snaps Spectacles We wait generative the to reach series further will they innovations to our for service. for Developers Places To generation by and we computing, building they vision of Snapchatters engage Snap a AI create introduced launched incremental the AR glasses across X Sponsored also amazing and Platform. see of new ad and our community. lenses, already Developer Promoted our new our OS reality provide AR our powered our we can't announced partners augmented as with experiences

stepping generate stones both of demonstrates in profitability. the we team of cleared flow, are on cash more structure results, future our and of to evident have a We EBITDA focused focused is believe that GAAP to also impact priorities. is financial profitability our more priorities free where path benefits of strategic our adjusted innovation core positive which meaningful set leaner critical of the a pace The by set rapid organizational our

of to line and $XXX million QX specifically, of and cash adjusted million progress the translated combination In free discipline of flow. EBITDA, $XX top

focused Snapchat, necessary realizing content. to organized and a top we entertaining our version experiences financial the line with simplified introduced leverage watching on Moving momentum friends, new forward, and to we build will operating using QX, core the performance. our camera communicating continue to carefully improved of investments drive while In into calibrate X on

this Snapchatters, and easy-to-use interface. relevant personal, a offers layout For more updated

unlocks greater the content Simple enhances Creators, For discovery ability new and Snapchat for audiences. to reach

Currently, of Broadly engagement is greatest users, Snapchat important inventory. Snapchat games Simple dozens there among more countries. XX Snapchatters driving input community the million growth across speaking, is using are Simple casual to and which advertising an content approximately

We replies particularly Friend are that starter spent foster devices, content, close positive is seeing to which Stories, increased and important reviews Android conversation an time relationships. with on impacts including increased helps story more

an to increase part engagement top metrics but these iOS, seeing impacts We Android, in on are across due as days are platforms. on the engagement to active broadly the yet positive in differences other also not in content as

We recognize engagement change advertising new in brings vary our significant that of enhancing and engaging Further, user communication impact on are may more to experience any creation, goals reinforces we the community user disruption risk business. expand and our to our cohorts. testing encouraged our inspiring this that will content by this it a conviction We of experience. early experience delivering progress further as as

As focused optimize a will we testing community to our experience our the business. ahead in result, months intently and and on iterating for be the

million in in World to of users compared XX progress. XXX in to prior year-over-year in initiatives compared continue active was XXX an XX the begin Europe to million of million QX, reaching year. users in as and our meaningful was North in increase America Daily the in user in million quarter-over-quarter. XX prior progress active the to community, XX Rest million, approximately increase but in XXX to million early growing and million global users our engagement We make up Daily quarter signs the prior prior DAU XXX active flat show daily XXX quarter-over-quarter of million year. was million

and introduced core prime the inspire their family retention driver In and and the is our growth communities our spark QX, the strengthen snapping. friends continued long-term relationships of our creation, service community. with new and to global features of of AI-enabled Snapping help through conversations we

video mash-ups AI-generated friends. with and we and Snapchatters collages For introduced to AI example, Memories, enables which Snapchat share

capabilities Vertex AI with on In to the an to addition, we strategic multimodal with snapping Gemini chat bot. power AI-powered expanded AI, our partnership announced leverage My of Google Cloud

tripled In QX, AI the number more to U.S. quarter-over-quarter. than the sent of snaps My in

platform Snapchat content strengthen sharing to them further are ML by with launched content with with enhanced than to represent friends improve Spotlight our by are text our engagement, better growing supply, on content up interest's for continues number focused we opportunities. on and Recommendation In of investing deepen content more To monetization in QX. of and spotlight deployed content to Creators. models relationships we in ranking our System signals Snapchatters our new video, optimized tools references people we XX% to historical models Snapchatters and recognition QX, year-over-year content a personalization. Our ML audio multimodal on creation submitted based and expand and To improve supporting Creator community and models

began prompt. text new QX, video that generation or tool videos we testing In a AI simple generate image enables creators a to with engaging

the drive to America increasing driven of higher down contributed content rate spent X% was XX% of outside as have part to Spotlight time of content North being approximately mix North America, efforts in due in while improvements have content greater year-over-year, X% stable, time the spend quarter-over-quarter. relatively in to support posting creators X% of Our growing regions. these watching viewing QX. by in helped combined watching The relatively growth In year-over-year initiatives these number quarter-over-quarter and year-over-year XX% content, creators increased global in to The impact QX. which

engagement depth and continues reach regions. Spotlight grow rapidly As to all of across

Lenses. AR million Augmented and in More on engagement XXX,XXX X and built the nearly inspire Snapchat. world to reality from continues have creation over teams drive developers than creators, country every

within was our example, transform Gen capabilities we created and Lens older times Studio, an self past Easy For AI a in minutes. to future AR tool which Lens, million generative enables in including My over a Lens, of build QX. this To viewed create to Snapchatters XXX it younger that number possible on makes new AI and their AI momentum, experience

of We XD are in new vibrant in to new to are through and belief new a requires a slate creator The AR build animation been our tool to We different characters. Studio developer Spectacles. response suite ecosystem long-term and Lens experiences efforts blend brought ecosystem. rolling has reinforces features AR life generate animations inspiring also critical easily believe to including to new a full global our success enabling tools GenAI that that Studio, together automatically our Lens and out

enable Brigtacular QX, the reflect fifth introduced to together world we and use that naturally of the Lenses operating people including their by and how multiple hands creating [ experience designed the partners anywhere. In platform are interact ways. lay immersive create Spectacles developers to Paradigm browse to AR unique OS, AR to AR system or developers generation and Internet AR enable Niantic. in a and AR glasses interact Spectacles screens Snap with friendly the already Spectacles, My new see-through our Group new stand-alone voice. powered LEGO are friends with AR our with out for from ], get experiences work Spectacles, done AI, developers and experiences, by

the We to experiences. aspire inspiration are to our invitation create the and world, an to generation of in developers Spectacles platform to developer-friendly new excited most we offer and be as new

Reality. in are focused community future ahead, Augment core critical opportunity. expanding to is initiatives We our our of and product believe progress experience Looking long-term continuing to while our a continued we these innovating on input monetization the invest on and serving enhancing

install performant ML foundational better privacy advertising We models, improved larger including signals safe progress order more performance three on app purchase compared is ad partners. formats continue optimization. advertising our with in to early for to per make cost platform performance deliver to campaign X-X initiatives, cost decreasing for and improved expansion decreasing and results purchase and XX% install to optimization per showing XX% and The advertisers app better of driving XX:X

our for an advertisers a app we new view introduced leverage optimization for and increase models. cost XX% with websites. a advertisers saw app lower to we XX% a and hit page increase in for that installs optimize international landing XX% game per help this in purchase. company models X:X specific purchases click our traditional cost objective, optimization of and per title install drive X% at in Through lower -- example, Nexters, Recently, creator [indiscernible] an observed engagement and install development purchase traffic versus quality improvements to their some costs ML lower goal For

leading The and digital the agency to conversion, [indiscernible], page guidance of leverage optimization tools expand increase XXX% compared a view base. customer increase a to optimized for XX% rapidly combination with are example, go-to-market saw easier our their efficiency XXX% customers more on-boarding and operations helping DR landing Wrangler and performant in in and of CPM a benchmarks. For ROAS previous products, higher to SMB integration

devices. efforts, services, and Creators in products, reach or alike audiences their within these all QX. can total of ad content new Today, App than SMBs their advertisers our offering, with Snapchat Snap performance on result more mobile a Promote double As and year-over-year promote measure

on-boarding advertiser so their automating the SMBs. in-flight our the enhance end recitations, further that and can from to SMBs process experience by to scaled editing for continue setup end, templates launched Recently, automated faster personalizing enhance also performance. We go-to-market strategy improve adaptive and for and campaign buying optimize campaign to we creative campaigns

franchise example, Install app XXX% leveraged a for quarter-over-quarter quarter-over-quarter optimization a completed increase Crumble, resulting ROAS purchase app in For caching our U.S.-based new in purchases. and ratio, X/X cookie XX% and their increase and in

on upper focused growth insights. by also with brand resources brands and supporting reaccelerating are while and delivering advertising revenue and performant funnel innovative unique agencies products, We

offers reach in slot AR them In at Lens scale. which of QX, their the we the advertisers day allowing our launched greater of impression to community first Carousel, Unlimited, Lens first the First

over drove XX% for Unlimited Lens incremental average an First partners. of advertising increase testing, in During impressions

to takeover Creators entire for each We state campaigns First or Story, First country to to also state. advertisers allows target launched individual the with U.S. which reach state-specific different Story

Sponsored and We are experimenting new ad Places. placements, also Snaps Promoted with X

bespoke of these service can are that our to full Importantly, develop ad format having screen video vertical placement to placements without across both designed so existing automate Snap leverage advertisers our creatives.

placements we advertisers will advertisers. sponsored businesses inventory believe making Promoted in core the communicate advertising of to ways Map community, suggest and of Snapchat Snapchat to with over our businesses places help new Places functionality differentiated reach Sponsored Promoted ad to contribute use accessible visually service, interest empower Snap time. enables to Snaps the to meaningful incremental will these Places Snaps and across Snapchatters Sponsored Snapchatters. will engaging the

to Promoted and that, are geographies Snaps call our to QX. results. in Derek the like discuss turn over in to With We on financial launch certain track to Sponsored I'd Places

Derek Andersen

year-over-year, driven billion, Thanks, and quarter-over-quarter. billion, was growth QX, from $X.XX which year-over-year, from Advertising increased year-over-year. growth as XX% up optimization well Evan. XX% revenue was $X.XX a XX% year-over-year strong DR ad XX% by total advertising app revenue, XXX% driven revenue X/X optimization. continued contribution In up revenue our demand up growing as primarily was purchase pixel by that than for more was DR purchase

see consumer verticals, X% demand including revenue oriented we and year-over-year technology, certain as retail. was from down weak entertainment advertising continued Brand to discretionary

revenue revenue all subscribers We XX Other [indiscernible] which QX. in continue is Snapchat+ our make year-over-year diversifying subscription to million doubled of in to $XXX doubling other Snapchat+ with progress reach sources non-advertising toward more revenue million to the QX. than year-over-year includes revenue, than more exceed and majority

in revenue more in impact to of lower Europe the growth on ad of as North impression driven year-over-year, grew volume large America DR Spotlight approximately as progress and a ECPMs year-over-year relatively inventory offset by region by revenue demand prior exceeded being our relatively year-over-year approximately rate advertising growth North grew fully with XX% in QX, creator expanded comparisons. QX. X% in In within platform. weaker year-over-year delivery were due year-over-year. stories. down World advertising driven part year XX% DR X% continued continued impact XX% progress growth and America. this Rest of brand-oriented grew demand Global concentrated revenue our grew of challenging Total ad with platform

million up $X.XX revenue, QX the cost is within in lower The Due Infrastructure cost range and end DAU ML which prior increase. XX% were of range year-over-year. with quarter of driver over the XX% in the the our QX million were in large XX% $X.XX part per components revenue the in Infrastructure $X.XX. was in of the year. to and year $X.XX guidance of past revenue was quarter of the which year-over-year cost or line XX%. in prior QX, adjusted investments from to $XXX remaining largest full in Adjusted costs ramp our at of AI of is expected structure up to and costs of $XXX

was expenses quarter, stable in year-over-year. QX, QX $XXX X% decreased XX% impact well offset relatively up with was an X% in This Snap which Snapchat line partially costs our Personnel Partner by XX% marketing but the in year. operating in were margin from more by year-over-year ongoing prior the million decline gross QX as year. occurred in as this full-time prior higher in the count. of XX% XX% Adjusted in QX, Summit, at related year to the Adjusted to in head driven our campaign year-over-year, costs up prior compared

in QX global QX, with including regulatory complying from legal-related in a also million Increases QX. discipline. costs lower personnel year-over-year, the operating higher $XXX of revenue EBITDA costs offsetting the impact environment, expense up were an increasingly in factor prior year, in was key of reflecting complex and Adjusted in million $XX

XX% deliver or improvement or QX large line EBITDA, to Adjusted EBITDA reflects and million that flow-through continue net to loss was compared and XX% $XXX top QX $XXX share revenue adjusted flow-through $XX we or $XX to the drive of $XXX loss related in of adjusted through carefully XX% and year. incremental million loss a performance. prior flowed the our growth in prioritize compensation EBITDA of improvement stock-based was a in million improved a $XX year-over-year the in million expenses, of restructuring impact net Net the financial million The to investments of in the of costs million year. QX in in reduction prior year-over-year as

count reduced impact prior and $XX refreshed the million. was $XXX [indiscernible] while cash was cash reflects grants Free The QX, of relative to equity million flow the reduction in quarter current in operating to million flow the in diminished $XXX year.

flow $XXX cash million, free months, flow operating million. XX cash was $XXX trailing and the was Over

which QX to cash share $X.X commitment ended conservative securities maturing with Dilution liquidity no year, was positive in reflects our a the for sheet in count balance growth We quarter. the flow. cash down investments X.X% prior QX or in with billion marketable top balance operations. our debt hand and ongoing As X.X% from line to and on our year-over-year to maintaining sustained ample we current in in deliver the growth with continue

QX, in growth million that XXX built enter continued will assumption our and anticipate DAU of approximately QX. on global we we QX guidance our the be As is community,

the early as users top In engaged to engagement Simple growth are over believe advertisers. We about Promoted growth particular, gains line are Snaps excited encouraged testing among that reach results, less can time. Snapchat, and we Places to by content this of show contribute important Sponsored potential we [indiscernible] incremental and for an frequently for to be Snapchat, input

many disruption. risk for While new user build content with changes the transition may placements near-term we new experience, associated of to over growth engagement the the believe Simple as and occur time, demand which Snapchat the presents in immediately of Snapchatters ad

While rollout testing may our this limited monetized the these Snapchat expand QX. most not move earliest, broad a as testing at until begun at highly now QX Simple markets, we markets have do currently and further we anticipate of through we in

In quarters. addition, an clients component underperforming important upper of demand QX, and has ads recent has in been funnel overall enterprise our business the of in advertising business portion from this large historically been

these $X.XX range XX% billion revenue our From tracking against full factors, guidance of well cost billion, to XX%. growth year structure our to revenue a year-over-year perspective, structure Given we QX guidance. for is cost implying $X.XX are

$X.XX partially in being growing guidance improvements, $X.XX in and was range midpoint core For QX offset of hit DAU. QX. range capacity we end to of infrastructure, ML pricing the top this by with cost AI benefit and We the per the near utilization anticipate being of our of for recent this

was to of this the range We QX cost in guidance in within anticipate other being of of end XX% revenue. all and the again range range For at XX% low our revenue, in QX. came

$X.XXX our expect we forecasted sequential low In end it of range, range billion of provided the was consistent to operating this QX, For with for QX, near full adjusted of run rate end to we year. the growth be guidance and the low modest annualized for the $X.XXX year with expenses, full billion.

a QX, For expense anticipate the of was $X.X full range. $X.XX end annualized for low the to come this billion growth run SBC SBC We full end for the and X% in and below below range to guidance year. for billion of related rate expenses, range our we low X% of in QX, we modest of sequential our the will year. anticipate the expense SBC guided therefore, in In

adjusted million structure, cost optimize the Given have range $XXX we million QX. in made above $XXX between and that progress and revenue the will our estimate we be to EBITDA

sheet, generation of manage the desire free balance the our sustained our our progress our shareholders. Given benefit strength towards to long-term of for cash opportunistically our flow share and count

We have amount the of share million. program authorized a $XXX new repurchase in

will you focused our As our growth questions. for your Thank today, we improved will we call now we on drive take remain move financial to investments and top performance. carefully line forward, prioritizing alongside joining

Operator

[Operator comes Instructions] Street from Our first question New Salmon Dan Research. with today

Daniel Salmon

risk comments. timing cautious testing of monetizing Okay. in over on of move you higher mentioned the that Derek and -- -- sort transition markets markets. Snapchat of you you're Great. other being Simple walked how the potential Evan, testing into through highlighted mentioned your most

a of the sense. level high lot So makes

Could a the you're team you take on don't risk on you you monitoring Including managing see monetization maybe ensuring headwind how the us from basis? a regular that and layer and changes? deeper how are a

Evan Spiegel

work long-term some rollout. increases But we to to excited begin of Thanks, seen engaged And content we've lot test do opportunity before definitely for Snapchat. Simple where in that's especially and the with biggest iterate broader about have users of new the a engagement. and a we We're Dan. less definitely

impacts So the inventory shifts that better things in monetization. include understanding and like to potential will

working be we'll into feed. more Discover ads rather delivery move the current than placements in of interstitial story to tile-based ad the example, For

is the we this So And from and potential test-and-learn taking benefit changes. certainly partners want ultimately, changes approach. our have the be which we're to really community disruptive, to our these why scale

Operator

with Our Greenfield LightShed next question comes from Rich Partners.

Richard Greenfield

looks you I is Just that to the next quarter, out? big disruption if a until major will follow great. all roll you U.K., ask out up your engagement in reason willing U.S., understand driving that product done we're think some are It's Snapchat. it's to ad on revenue-neutral to take this near-term France, the some started I Simple out in trying The you sense. broadly to roll shift just make markets? some wanted is, markets obviously, you of roll it makes Germany, it will what Or trying like but have When Like you it said -- what to year wait you to -- to out product? the we're happen understand more revenue-wise to superior roll

Evan Spiegel

still and those that changes those the to We're on the and those and to revenue. shifts Yes. advertisers take sorts and of certainly We could want partners, sorts understanding are some impact in inventory for Rich. sure monetization Thanks, through early how make of of journey the time prepared work example, changes. for dynamics our

we've say, So those some through think pretty We're and and new excited monetization our all time to And really right the understand early work going that while some with we of now. dynamics of to changes. are about seen take I users. shifts it's to engagement engaged less the

So goal really and that along community our -- to journey. is partners for our take our

And an and time. and rollout, keep learning even potentially example, extended so of testing going like something we're period to explore over phase for here

Operator

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

Justin Post

very know get excited term? ads just the ask usage and and about inserting about help long Snaps that look in Places. the thinking you pretty how about Promoted and you services those you I for us long-term how Just Sponsored you're you're wanted understand mentioned to the Can opportunity. could

Evan Spiegel

platform. different of really Ads across differentiated Justin. our be we our that foundation placements past community couple new With ways that leveraging performance Thanks, built really the that Yes, Snap ad with across leverage we're and the unique at really for these fungible across over years. be advertising X Snapchat will about excited engages can many placements vision the the

early general, the to lot seeing to customer the feedback. on there. focused although people run a in I early into of relationship. tests, driving gotten more Places, in businesses some that bit too try some locations store retail of really case initial But and we've strengthen great we're think their share in Promoted I data think just We've a it's

brands many with customers. they've been feeling think relationship dis-intermediated like I with are their digital

to into so them. something bring establishments relationship their with important their really people strengthen that's being able retail and that And customers, to

feedback And we sponsored been in there the some has great. So test quarter. Snap have forthcoming the

have there, data eager that back as to share more we'll some we be well. once So

Operator

next Our question from Wells Ken comes Fargo. with Gawrelski

Kenneth Gawrelski

it. objectives Appreciate take and about you is advertisers more the very both always will Google products app -- more or to spend SME think the one and Meta. important is Want of simplified be to and when if how other? when we cut than and there's versus which it And successful you key think at the ask, only for give monetization, get one a engagement is you spend the and could think the you opportunities more launch you about do also to -- second to Snap, allow budget across of two kind on allocate of if away direct kind that what response you services the -- not seem which But on, a behavior. broadly, to different the

Evan Spiegel

Ken. Thanks, Yes.

evolution as creating the think has a and experience that best Snapchat, community, always North they love. possible our really product I for with look we product experience Simple been at the Star our

do And basic have something now. even stories the as these people watching with like innovated engage app watching years things that's quite are some challenges to complex. that we've over in and two to new has think all ways Spotlight, today there Snapchat. become different right screens created or I The

to direction And think, I really able so be unify step content going to for being us. the a that's the is important right something experience, in

content example. for goes Same for discovery,

full is And tile-based will I Snapchat, benefit reach screen that working not today, opportunity I content. as just not big are that's -- but hard also so the folks with who Creators discovery. our think a discovery compelling really audience to effective think really content as content using only

in So important this Star really to our of partners I is us. of and like think, course, community creators our general, North

able -- our the we that these as they then opportunity is over to long audience that for tends And service. of parts term reach through well are advertising more found different our as create partners to

then and Star as content is our community advertising the partners about I can transition and how manage best our this think So well. engagement that benefit North thinking be the we so partners to can from going it

Operator

Our with comes Mark from next question Shmulik Bernstein.

Unknown Analyst

behalf I'm of Shmulik. Mark on Louisa speaking

question question more of spotlight on you I engagement. viewership some America different. North outside Spotlight Is color have So behavior a that? have provide on a -- Can we

Evan Spiegel

We've strong engagement seen globally. really growth in Spotlight

in think the while we've in shared growth essentially the some declines I engagement as America, in North we've Spotlight. we content letter, been seen stories with offsetting

shift bit seeing view So big and a a you're overall, growth of been of engagement But think growth I mix for of driver content us. a there. has depth the time Spotlight the of

Operator

from with comes James next question Our Jefferies. Heaney

James Heaney

helped become a in your meaningful needs for app install seeing far XX% results Can to curious to more to the you're you inform the talk And what driver of results? that if you revenue then about can the so that you're from clients And growth top guide? on XX% seeing new just app your that line product? install comment happen QX

Derek Andersen

the James, it's question. Derek. Thanks for

we bigger revenue in one think ongoing expanding with is that see things lead that to basis, to driving general limited initial products really a the through availability those actual the of evangelizing trend is an of point on seen app new the I process we've the sort existing and optimizations side, that On of clients getting testing good then walked eventually can to contribution results then over to time. a then adoption which those customers we growth broader tends results and and go-to-market, for and where a

growth. to year we saw contributor app in purchase a growing in -- the over So QX, particular to if optimization become I this look top start line

purchase, and we app studies some app that optimization wonderful So is in in now year. It the something testing things advertisers. phase improvements see. -- We've performance those think extended our earlier shared and which is a much we there. becoming X/X install went contributor, go-to-market that too, and case are about to framework through that that's and If for seen clear we expansion launched we've

metrics from cost purchase down we've a for cost per point But XX%. install XX% down per example, and seen is is of view,

and results can So results that those see customers are for exciting we to really to us others. evangelize our then give

So verticals keep product to execution the case here through that to rolling adoption expand drive the results the key the the the the elevation, out think really those where Fed continue market go-to-market. have is to good I testing in of customer evangelize in those, we studies

year If we Optimization. well optimization out, on year-over-year that back recent test grow, the first more one entire through rolled launch business rebuild the we that's up the Pixel a look Purchase ago DR evangelize of And that really the the than the we and in and XXX% that's most saw of X/X gone was quarter. further, evolution the

drive on that DR question. with overall momentum continued that there Thanks the to build hoping we helps. business. So Hopefully, the have for and the results

other that. importing we're your question the has historically into quarter. around Obviously, When what's thinking about and back-end weighted been QX a guide pretty QX

to through always is to limited so the read And back half challenging.

seeing parts I focused is business. of different momentum think the we're that the the we're one of on things in

there, the and app lot a business. talked DR the continued execution on about We're continued [indiscernible] optimizations adoption, focused just I So continued client of performance. rollout

year-over-year we that's not quarter expecting we're not of a revenue in of the as down obviously, component X QX. the there the brand major any each anticipating there. last been We've into year. the in X% quarters. side, of shift significant On important final And go an recovery

terms we're the focused of growth igniting is execution on long in product Our there key term. that

in optimizations to the didn't first the some most roll see product quarter, first Unlimited, the recent lens Lens first impression which you reach allows in and line improving of day advertisers us our the Carousel. folks the for So out

incremental actual really XX% increase in some results drove seeing impressions. -- that's XX% early So nice

we states or individual advertisers And creative for product First the specific target country to launched states. target which Story, a entire creative that also is state-specific to allows with to the different different

QX. side there's brand the of the product not expecting a a that So going improving to particularly the in growth that's key lot on and longer improvement there, but big in innovation term, and over

So you of there. that very those color. Simple little informing Snapchat dynamics limited hopefully, that range gives of the the are alongside we're a are seeing And testing the some

Operator

Khajuria Research. with Shweta from Our next comes question

Shweta Khajuria

guess growth. regarding line top I

and ongoing on announcements you mind think Snapchat+ growth. growth, most of faster I growth that if overall Snapchat longer So for advertising gives from bit during and the just market lot Partner monetization. optimizations in mean that a even integration subscription, when app and trajectory product and Snaps to that than initiatives you digital excluding, takes your Summit, guess, a ability then with in Promoted you Places, what going had and confidence your about your the your I the little API you of includes ad revenue have Simple Sponsor deliver

near us So you how could you as -- midterm in through revenue think of think what about to gives you maybe ad growth? confidence help terms

Derek Andersen

Hey Derek speaking. there, it's

over long the there. business think start, momentum we and very we on build the making think, term, terms on small funnel of most on optimizations. of the answer are To I out we're execution of product I and that rolling business then that, multilayered. specifically medium-sized direct lower response the is And in the the focused sure segment on growing here top DR focused and customer

as So here growth business. multilayered that each rate executing those, talk say number there's against where of approach drive of the on able through one higher to of initiatives, sustained components those a a we're and I'd of be that I -- different to

the is feeds better right ML AI the So to that into recommendation continued specifically, getting of ads in front build-out personalization have ability our person. first, company of of out the right the and the and ongoing architecture at

and the coming into make larger on harnessed our We those of and frequently. into more signals refresh the signals getting continue of that more much more to platform that exist ability to models more safe progress having harvesting the privacy on platform

the and for steady out earlier We seeing talked us optimizing new advertisers. strong Pixel X/X rolling the drumbeat see we're can then goals delivering of about you really Then Purchase. the growth

where that have on go-to-market Now we out extended deliver to deliver folks great product that's growth, basically framework and then client -- the starting of objectives we how to and rolled to that all market and app to those some sizes fit. optimizations efforts

One there's do. really and of is of there SMC, to a that a learnings learning lot of and muscles build on the work go-to-market we're lot here to

advertisers is couple So out number for -- roll been app. for get the , right started just Snap of with able great to a example, to way we've clicks a in one Promote

get to friction way lowest So started. the

got started are made bad long customers, recommendations to for it integration extending feedback also, made their very We've and and for equivalents then Ad get we've without with adopt partners very it not do for easier and campaign we're onboard there a started -- quickly their and easier partners optimization integration much ], integrations [ that feeding focusing Management then small automated us where of Cappy it to them Cappy much making with with lot signals getting setup for a medium-sized and and helping direct loop. to easier are that get drive only better we've but direct

of lot a answer here. I there's your simplest is to the be here think sort of work is the very question clear. done And map road So to

and things a lot a to execute to We have against. of work lot of do

And a need team have idea the We been to very execution very we do. has clear what of of solid. pace

to focus that continue the bit execute and that little customers map, results. so now is drive road Hopefully, a our deliver the helps to And there. for

Operator

question last Ross comes Barclays. from with Our Sandler

Ross Sandler

Have Great. question Spectacles. on the a

demo at that versions when insane out the have tried Partner of us prior of some the pretty to was product. compared Summit So

quicker the on you're to guess Meta product So than your level what that investment what thoughts great. impact level question that I market get product is is now the Just that does the seen and with the the by consumer we've when going both perhaps consumer doing that over and -- that And pace before that, of or not? investment expecting? a how to related be the then you pace what like could be to to Orion, would of which get consumer timing are

Evan Spiegel

progress Thanks, fifth about with the share Ross. and generation many we're partners and we're really Yes, excited that our so of exciting making been really developers. Spectacles it's with to

helping Spectacles. Lenses just I on really for think amazing right we're now, people focused build

sort any one that chicken to needing first this faces our new challenges computing experiences of people of think when really case, new lens platforms AR is in they I buy the glasses. and of use egg problem

sure And for there they making lenses consumer the supporting by buy to are on that seating product. people and amazing really focusing ecosystem when developer and use so

adoption. we're in solve think need on we of to key really I focused the consumer widespread problem advance

So going huge as long. We so think just It's exciting the to people weeks ones now. amazing there have been a with grounded opportunity stay already we're is for to focused been see transform And built the interactions. decade since there's world we've together friends way to and vision towards natural and working over a now. this people a for real the use in computing, leveraging their the in

complex way And so assets Spectacles power we leverage but have also that people core then application, in a Snapchat on Studio, experiences them not build these and unique Lens really some just performant really like is to very AR which run Lens Glasses. a helps

investments we've the excited So progress that and me now get alongside all we hands. of course, hardware in the of this and made potential just our customers' really about to where makes are into

So soon. on excited -- We're we're you to really with keep executing. our going to stay more and strategy focused share

Operator

as session as Conference concludes our Quarter well Inc.'s today's 'XX Earnings as attending Call. well Q&A Snap Thank This session. you you. for Thank Third

disconnect. You now may

Snap (SNAP) 29 Oct 242024 Q3 Earnings call transcript