Q2 2024 Earnings Slides

August 1, 2024
Forward-Looking Statements & Non-GAAP Financial Measures
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This presentation includes certain non-GAAP financial measures. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are
presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and
presented in accordance with GAAP. A reconciliation of GAAP to non-GAAP measures is provided in the Appendix of this presentation.

2
 Second Quarter 2024 Financial Summary

• Revenue was $1,237 million, compared to $1,068 million in the prior year, an increase of 16%1 year-over-year.
Revenue
• Average revenue per user was $2.86, compared to $2.69 in the prior year.

• Operating margin was (21)%, compared to (38)% in the prior year.

• Adjusted gross margin2 was 53%, compared to 54% in the prior year.
Operating
• Net loss was $249 million, compared to $377 million in the prior year.
Performance
• Adjusted EBITDA3 was $55 million, compared to $(38) million in the prior year.

• Adjusted EBITDA margin3 was 4%, compared to (4)% in the prior year.

• Operating cash flow was $(21) million, compared to $(82) million in the prior year.

• Free Cash Flow3 was $(73) million, compared to $(119) million in the prior year.
Cash
• On a trailing twelve month basis, operating cash flow was $244 million and Free Cash Flow3 was $15 million.

• Cash, cash equivalents, and marketable securities were $3.1 billion as of June 30, 2024.

1
On a constant currency basis, the impact of foreign exchange rates on revenue was not material at less than 1% in Q2 2024. Constant currency revenue is a non-GAAP measure, see Appendix for further detail.
2
Adjusted gross margin is a non-GAAP measure, which we define as GAAP revenue less adjusted cost of revenue divided by GAAP revenue. Adjusted cost of revenue is a non-GAAP measure and excludes stock-based compensation expense, payroll and other tax expense related to stock-based compensation,
depreciation and amortization, and certain other items impacting net income (loss) from time to time.
3
Adjusted EBITDA margin is a non-GAAP measure, which we define as Adjusted EBITDA divided by GAAP revenue. See Appendix for reconciliations of net loss to Adjusted EBITDA and net cash provided by (used in) operating activities to Free Cash Flow.
Quarterly information is unaudited. Numbers throughout presentation may not foot due to rounding.
3

REVENUE WAS $1,237 MILLION IN Q2 2024, AN INCREASE OF 16% YoY

NO DEBT MATURING IN 2024 AND ONLY $36 MILLION IN 2025
Business Highlights

We grew and deepened our engagement with our community:

• DAUs were 432 million in Q2 2024, an increase of 36 million, or 9% year-over-year.
• Q2 marked an important milestone for Snap, as we reached more than 850 million monthly active users (MAU).
• We recently announced new communication features for Snapchatters to stay connected with friends and family and the world, including editable chats, Map
emoji reactions, and My AI reminders.
• We renewed our longstanding sports partnerships with the NFL, NBA, and WNBA, to provide official content across Stories and Spotlight for our community.
• We announced Snap Nation, an exciting evolution of our partnership with Live Nation that gives Snapchatters access to tour and festival experiences that
only Live Nation can offer.
• We partnered with Ensemble, a branded entertainment company founded by Issa Rae to help brands produce content with our 523 creator accelerator
program that is focused on growing and building diverse voices.
• We selected members of our first-ever Council for Digital Well-Being, in which we’ll hear from teens on their perspectives on the states of their digital lives
today and hopes for the future.
• We announced several new features to further safeguard our community from online harms, including expanded in-app warnings, enhanced friending
protections, simplified location-sharing, and blocking improvements.

4
Business Highlights (Continued)

We are focused on accelerating and diversifying our revenue growth:

• Ongoing momentum with our direct response products and growth in small- and medium-size businesses (SMB) contributed to total active advertisers more
than doubling year-over-year in Q2.
• Our improvements to Conversions API (CAPI), improved collaboration with advertisers, and growth in partner integrations resulted in CAPI integrations
growing over 300% year-over-year.
• Snapchat+ reached 11 million subscribers in Q2.
• We announced AR Extensions, which enable advertisers to integrate AR Lenses and Filters directly into all Snapchat ad formats.
• We announced that brands can now leverage Generative AI technology such as our ML Face Effects to create custom sponsored AR Lenses.
• To help entertainment advertisers understand Snapchat’s impact on theatrical releases, we partnered with Samba TV, which found that exposure to
campaigns on Snapchat delivered a 91% lift in ticket sales.
• We launched the Snap Advanced Partner Program, offering qualifying agencies and partners the opportunity to work closely with Snapchat to create
innovative solutions that build stronger full funnel campaigns and drive results.

5
Business Highlights (Continued)

We invested in our augmented reality platform:

• We continue to invest in Generative AI models and automation for the creation of ML and AI Lenses, such as our Gen AI lens Scribble World which was
viewed over 1 billion times and our 90’s AI lens, which was viewed by more than 20% of US Snapchaters.
• We launched Lens Studio 5.0, which features our new Gen AI Suite that makes Lens Studio easier to use by enabling creators to generate a variety of Lens-
ready assets with a prompt and no coding required.
• In partnership with Live Nation and Ocesa, our AR technology enhanced for the first time Tecate Emblema, a major music festival in Mexico City, powered by
CameraKit Live.
• Our partnership with OMD and Amplified Intelligence found that Snapchat campaigns that include AR in their mix drive 5x more active attention compared to
industry peers.
• We partnered with Cartier on a first-of-its-kind AR experience celebrating the 100th anniversary of The Trinity Collection, allowing Snapchatters to try-on and
shop the Classic Trinity Ring.

6
 Average Daily Active Users (DAU)
(in millions, unaudited)

GLOBAL NORTH AMERICA1

+ 9% 0%

414 422 432

397 406 100 101 101 100 100 100
383

Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24

EUROPE2 REST OF WORLD

+ 3% + 16%

226 235
211 218
96 96 97 202
93 94 95 190

Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24

We define a Daily Active User, or DAU, as a registered and logged-in Snapchat user who visits Snapchat through our applications or websites at least once during a defined 24-hour period. We calculate average Daily Active Users for a particular quarter by adding the number of DAUs on each day of that quarter and
dividing that sum by the number of days in that quarter.
1
North America includes Mexico, the Caribbean, and Central America.
2
Europe includes Russia and Turkey. 7
Numbers throughout presentation may not foot due to rounding.

GLOBAL DAU INCREASED 36 MILLION, OR 9%, YoY

REST OF WORLD DAU INCREASED 33 MILLION, OR 16%, YoY
 Revenue by Geography
(in millions, unaudited)

GLOBAL NORTH AMERICA1

+ 16% + 12%

$1,361 $900
$1,189 $1,195 $1,237 $786 $743 $768
$1,068 $687
$989 $640

Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24

EUROPE2 REST OF WORLD

+ 26% + 20%

$256
$238 $230 $239
$223
$200 $196 $191 $199 $202
$182
$158

Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24

Total revenue for geographic reporting is apportioned to each region based on our determination of the geographic location in which advertising impressions are delivered, as this approximates revenue based on user activity. This allocation is consistent with how we determine ARPU.
1
North America includes Mexico, the Caribbean, and Central America.
2
Europe includes Russia and Turkey. Effective March 2022, we halted advertising sales to Russian and Belarusian entities. 8
Numbers throughout presentation may not foot due to rounding.

GLOBAL REVENUE INCREASED 16% YoY

 Average Revenue Per User (ARPU)
(unaudited)

GLOBAL NORTH AMERICA1

+ 6% + 12%

$8.96
$3.29 $7.82
$2.93 $7.44 $7.67
$2.83 $2.86 $6.83
$2.58 $2.69 $6.37

Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24

EUROPE2 REST OF WORLD

+ 22% + 4%

$1.13
$2.49 $1.00 $0.98 $1.03 $1.02
$2.36 $0.96
$2.11 $2.04
$1.93
$1.70

Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24

We define ARPU as quarterly revenue divided by the average Daily Active Users. For purposes of calculating ARPU, revenue by user geography is apportioned to each region based on our determination of the geographic location in which advertising impressions are delivered, as this approximates revenue based on user activity.
1
North America includes Mexico, the Caribbean, and Central America.
2
Europe includes Russia and Turkey. Effective March 2022, we halted advertising sales to Russian and Belarusian entities. 9
Numbers throughout presentation may not foot due to rounding.

GLOBAL ARPU WAS $11.90 OVER THE TRAILING TWELVE MONTHS

 1
Adjusted Gross Margin and Adjusted Cost of Revenue
(dollars in millions, unaudited)

ADJUSTED GROSS MARGIN1 ADJUSTED COST OF REVENUE1 COMPOSITION

Infrastructure Costs Advertising Partner & Other Costs

Content & Developer Partner Costs
- 1 PPT + 19%

$615
$570 $586
$550
$491 $182 $146
56% 54% 55% $148
54% 52% 53% $156
$435
$142
$86 $84 $90
$141 $73
$72
$66

$320 $347 $338 $350

$277
$228

Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24

Total Non-GAAP $5 $6 $6 $6 $5 $3
Exclusions1
Adjusted Cost of Total GAAP Cost
Revenue1 as a % 44% 46% 46% 45% 48% 47% of Revenue $440 $497 $556 $622 $575 $589
of Revenue

1
Adjusted gross margin is a non-GAAP measure, which we define as GAAP revenue less adjusted cost of revenue divided by GAAP revenue. Adjusted cost of revenue is a non-GAAP measure and excludes stock-based compensation expense, payroll and other tax expense related to stock-based compensation,
depreciation and amortization, and certain other items impacting net income (loss) from time to time. In Q1 2024, other items included restructuring charges of $1 million. See Appendix for further detail. 10
Numbers throughout presentation may not foot due to rounding.

ADJUSTED GROSS MARGIN IMPROVED BY 1 PPT QoQ

 1
Adjusted Operating Expense Margin and Adjusted Operating Expenses
(dollars in millions, unaudited)

ADJUSTED OPERATING EXPENSE MARGIN1 ADJUSTED OPERATING EXPENSES1 COMPOSITION

Research & Development Sales & Marketing

General & Administrative
+ 9 PPT - 3%

57% $615 $599 $596

$587 $579
52% 52% $553
50%
$169 $162
44% 42% $168 $176 $184
$148

$215 $210 $193

$206 $198 $206

$200 $230 $227 $226 $205 $206

Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24

Total Non-GAAP $361 $360 $414 $402 $374 $306

Exclusions1
Adjusted Total GAAP
Operating Operating $914 $975 $1,013 $988 $953 $902
56% 58% 50% 43% 48% 48%
Expenses1 as a Expenses
% of Revenue

1
Adjusted operating expense margin is a non-GAAP measure, which we define as GAAP revenue less adjusted operating expenses, divided by GAAP revenue. Adjusted operating expenses is a non-GAAP measure and excludes stock-based compensation expense, payroll and other tax expense related to stock-
based compensation, depreciation and amortization, and certain other items impacting net income (loss) from time to time. In Q3 2023, Q4 2023, Q1 2024, and Q2 2024, other items included restructuring charges of $19 million, $22 million, $69 million, and $2 million, respectively. See Appendix for further detail. 11
Numbers throughout presentation may not foot due to rounding.

ADJUSTED OPERATING EXPENSE MARGIN IMPROVED 9 PPT YoY

ADJUSTED OPERATING EXPENSES DECREASED 3% YoY
 1
Net Income (Loss) & Adjusted EBITDA
(dollars in millions, unaudited)

NET INCOME (LOSS) ADJUSTED EBITDA1

Net Income (Loss) Margin Adjusted EBITDA Margin2

$159

(18)% (20)%
(26)%
(31)% $55
(33)% 12% $46
(35)% $40
$(248) $(249)
3% 4% 4%
$1
$(305)
$(329) 0.1%

$(377) $(368)
(4)%

$(38)
Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24

1
Adjusted EBITDA is a non-GAAP measure, which we define as net income (loss), excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation and amortization; stock-based compensation expense; payroll and other tax expense related to stock-based
compensation; and certain other items impacting net income (loss) from time to time. In Q3 2023, Q4 2023, Q1 2024, and Q2 2024, other items included restructuring charges of $19 million, $22 million, $70 million, and $2 million, respectively. See Appendix for reconciliation of net loss to Adjusted EBITDA.
2
Adjusted EBITDA margin is a non-GAAP measure, which we define as Adjusted EBITDA divided by GAAP revenue. 12
Numbers throughout presentation may not foot due to rounding.

NET LOSS IMPROVED 34% YoY

ADJUSTED EBITDA WAS $55 MILLION IN Q2 2024 AND $300 MILLION OVER THE TRAILING TWELVE MONTHS
 Diluted Net Income (Loss) Per Share &
Common Shares Outstanding Plus Shares Underlying Stock-Based Awards
(in millions, except per share data, unaudited)

DILUTED NET INCOME (LOSS) PER SHARE1 COMMON SHARES OUTSTANDING PLUS SHARES UNDERLYING
STOCK-BASED AWARDS

Common Shares Outstanding

Shares Underlying Stock-Based Awards³

1,765 1,793 1,803 1,789 1,798

1,723
149 155 158 146 144
128

$(0.15) $(0.15) 1,645 1,643 1,654

1,595 1,616 1,639
$(0.19)
$(0.21)
$(0.23)
$(0.24)

Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24

Total Non-GAAP Shares

$0.22 $0.22 $0.25 $0.23 $0.22 $0.17 — — — 18.4 21.0 6.9
Exclusions2 repurchased
Non-GAAP diluted
net income (loss) $0.01 $(0.02) $0.02 $0.08 $0.03 $0.02 YoY Change 0.9% 1.6% 5.5% 5.7% 3.8% 1.9%
per share2
1
Diluted net income (loss) per share is calculated using weighted average shares outstanding during the period.
2
We define Non-GAAP net income (loss) as net income (loss), excluding amortization of intangible assets; stock-based compensation expense; payroll and other tax expense related to stock-based compensation; certain other items impacting net income (loss) from time to time; and related income tax adjustments.
Non-GAAP net income (loss) and weighted average diluted shares are then used to calculate Non-GAAP diluted net income (loss) per share. In Q3 2023, Q4 2023, Q1 2024, and Q2 2024, other items included restructuring charges of $19 million, $22 million, $70 million, and $2 million, respectively. See Appendix for
reconciliation of diluted net income (loss) per share to non-GAAP diluted net income (loss) per share.
3
Shares underlying stock-based awards include restricted stock units, restricted stock awards, and outstanding stock options. 13
Numbers throughout presentation may not foot due to rounding.

REPURCHASED 6.9 MILLION SHARES IN Q2 2024 AT AN AVERAGE PRICE OF $11.06

CUMULATIVE SHARE REPURCHASES OF 151.5 MILLION SHARES FOR $1.5 BILLION AT AN AVERAGE PRICE OF $9.91
 1
Operating Cash Flow and Free Cash Flow
(in millions, unaudited)

OPERATING CASH FLOW FREE CASH FLOW1

$111
$103
$165
$151

$38
$88

$13

$(61)
$(21) $(73)

$(119)
$(82)
Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24

Capex $(48) $(37) $(73) $(54) $(50) $(52) YoY Change (3)% 19% (435)% 41% (63)% 38%

1
Free Cash Flow is a non-GAAP measure, which we define as net cash provided by (used in) operating activities, reduced by purchases of property and equipment. See Appendix for reconciliation of net cash provided by (used in) operating activities to Free Cash Flow. 14
Numbers throughout presentation may not foot due to rounding.

OPERATING CASH FLOW WAS $244 MILLION OVER THE TRAILING TWELVE MONTHS
FREE CASH FLOW WAS $15 MILLION OVER THE TRAILING TWELVE MONTHS
 Capital Resources and Liquidity
(in millions, unaudited)

CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES OUTSTANDING CONVERTIBLE NOTES

$4,103 Outstanding Principal

$3,689 $3,613 $3,544

$3,081
$2,911

$1,500
$1,150
$750

$250
$0 $36 $0
Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 2024 2025 2026 2027 2028 2029 2030

Significant financing activities

Note Repurchases — — — — $(441) $(418)
Stock Repurchases — — — $(189) $(235) $(76)
Issuance of 2030
Notes, net of — — — — — $672
Capped Calls
Other1 — $(238) — — — $63

1
In Q2 2024, Other is composed of proceeds from the termination of the 2025 Capped Call Transactions. In Q2 2023, Other is composed of deferred payments for acquisitions completed in 2021. 15
Numbers throughout presentation may not foot due to rounding.

$3.1 BILLION IN CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES ON HAND AT Q2 2024
NO DEBT MATURING IN 2024 AND ONLY $36 MILLION IN 2025
Q3 2024 Outlook
As we enter Q3, we anticipate continued growth of our global community, and as a result, our Q3 guidance is built on
the assumption that DAU will be approximately 441 million in Q3. We are focused on executing against our roadmap to
deliver improvements to our advertising platform to drive strong performance for our advertising partners and
accelerate topline growth. Our Q3 guidance range for revenue is $1,335 million to $1,375 million, implying year-over-
year revenue growth of 12% to 16%. Given the revenue range above, and our investment plans for the quarter ahead, we
estimate that Adjusted EBITDA will be between $70 million and $100 million in Q3.

16
Appendix
 Non-GAAP Financial Measures Reconciliation – Quarterly
(in thousands, unaudited)

Three Months Ended

March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024
Adjusted EBITDA Reconciliation
Net income (loss) $ (328,674) $ (377,308) $ (368,256) $ (248,247) $ (305,090) $ (248,620)
Add (deduct):
Interest income (37,948) (43,144) (43,839) (43,463) (39,898) (36,462)
Interest expense 5,885 5,343 5,521 5,275 4,743 5,113
Other (income) expense, net (11,372) (1,323) 20,662 34,447 81 20,792
Income tax (benefit) expense 6,845 12,093 5,849 3,275 6,932 5,202
Depreciation and amortization 35,220 39,688 41,209 43,882 38,098 37,930
Stock-based compensation expense 314,931 317,943 353,846 333,063 254,715 258,946
Payroll and other tax expense related to stock-based
compensation 15,926 8,229 6,463 8,706 15,970 10,133
Restructuring charges1 — — 18,639 22,211 70,108 1,943
Adjusted EBITDA2 $ 813 $ (38,479) $ 40,094 $ 159,149 $ 45,659 $ 54,977

Three Months Ended

March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024
Free Cash Flow Reconciliation
Net cash provided by (used in) operating activities $ 151,102 $ (81,936) $ 12,781 $ 164,574 $ 88,352 $ (21,377)
Less:
Purchases of property and equipment (47,630) (36,943) (73,435) (53,719) (50,448) (52,062)
Free Cash Flow3 $ 103,472 $ (118,879) $ (60,654) $ 110,855 $ 37,904 $ (73,439)

1
In Q3 2023 and Q4 2023, charges relating to the wind down of our AR Enterprise business were composed primarily of cash severance, stock-based compensation expense, and charges related to the revision of the useful lives and disposal of certain acquired intangible assets. Additionally, we recognized an
income tax benefit of $6 million in Q4 2023 relating to the wind down, which is included in the income tax (benefit) expense line item above. In Q1 2024 and Q2 2024, charges relating to the 2024 restructuring were composed primarily of cash severance and stock-based compensation expense. These
charges are not reflective of underlying trends in our business.
2
Adjusted EBITDA is a non-GAAP measure, which we define as net income (loss), excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation and amortization; stock-based compensation expense; payroll and other tax expense related to stock-based
compensation; and certain other items impacting net income (loss) from time to time.
3
Free Cash Flow is a non-GAAP measure, which we define as net cash provided by (used in) operating activities, reduced by purchases of property and equipment. 1
Numbers throughout presentation may not foot due to rounding.
 Non-GAAP Financial Measures Reconciliation – Quarterly
(in thousands, unaudited)

Three Months Ended

March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024
Non-GAAP net income (loss) reconciliation
Net income (loss) $ (328,674) $ (377,308) $ (368,256) $ (248,247) $ (305,090) $ (248,620)
Amortization of intangible assets 17,755 18,405 19,134 17,484 15,443 14,950
Stock-based compensation expense 314,931 317,943 353,846 333,063 254,715 258,946
Payroll and other tax expense related to stock-based
compensation 15,926 8,229 6,463 8,706 15,970 10,133
Restructuring charges1 — — 18,639 22,211 70,108 1,943
Income tax adjustments 32 (269) (573) (5,306) (1,999) (4,020)
Non-GAAP net income (loss)2 $ 19,970 $ (33,000) $ 29,253 $ 127,911 $ 49,147 $ 33,332

Weighted-average common shares - Diluted3 1,581,370 1,603,172 1,625,917 1,638,714 1,647,387 1,644,736

Three Months Ended

March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024
Non-GAAP diluted net income (loss) per share reconciliation
GAAP diluted net income (loss) per share $ (0.21) $ (0.24) $ (0.23) $ (0.15) $ (0.19) $ (0.15)
Non-GAAP adjustment to net income (loss) 0.22 0.22 0.25 0.23 0.22 0.17
Non-GAAP diluted net income (loss) per share2 $ 0.01 $ (0.02) $ 0.02 $ 0.08 $ 0.03 $ 0.02

1
In Q3 2023 and Q4 2023, charges relating to the wind down of our AR Enterprise business were composed primarily of cash severance, stock-based compensation expense, and charges related to the revision of the useful lives and disposal of certain acquired intangible assets. Additionally, we recognized an
income tax benefit of $6 million in Q4 2023 relating to the wind down, which is included in the income tax adjustments line item above. In Q1 2024 and Q2 2024, charges relating to the 2024 restructuring review were composed primarily of cash severance and stock-based compensation expense. These charges
are not reflective of underlying trends in our business.
2
We define Non-GAAP net income (loss) as net income (loss), excluding amortization of intangible assets; stock-based compensation expense; payroll and other tax expense related to stock-based compensation; certain other items impacting net income (loss) from time to time; and related income tax adjustments.
Non-GAAP net income (loss) and weighted average diluted shares are then used to calculate Non-GAAP diluted net income (loss) per share.
3
For all periods, weighted average common shares used in computation of diluted EPS primarily excluded unvested or unexercised stock-based awards, Convertible Notes, and Capped Call shares as they were anti-dilutive.
Constant currency revenue is a non-GAAP measure, which we define as GAAP revenue in the current period translated using the prior period average monthly exchange rates for revenue transactions in currencies other than the U.S. dollar. We calculate the constant currency revenue percentage change using
current period constant currency revenue and prior period GAAP revenue. We report revenue on a constant-currency basis in order to facilitate period-to-period comparisons of our results without regard to the impact of fluctuating foreign currency exchange rates, which we believe is helpful to investors. However,
constant currency revenue is a non-GAAP financial measure, may be calculated differently from similarly titled measures used by other companies, and is not meant to be considered as an alternative or substitute for comparable measures prepared in accordance with GAAP. 2
Numbers throughout presentation may not foot due to rounding.
Note Regarding User Metrics and Other Data
We define a Daily Active User, or DAU, as a registered and logged-in Snapchat user who visits Snapchat through our applications or websites at least once during a defined 24-hour period. We
calculate average DAUs for a particular quarter by adding the number of DAUs on each day of that quarter and dividing that sum by the number of days in that quarter. DAUs are broken out by
geography because markets have different characteristics. We define average revenue per user, or ARPU, as quarterly revenue divided by the average DAUs. For purposes of calculating
ARPU, revenue by user geography is apportioned to each region based on our determination of the geographic location in which advertising impressions are delivered, as this approximates
revenue based on user activity. This allocation differs from our components of revenue disclosure in the notes to our consolidated financial statements, where revenue is based on the billing
address of the advertising customer. For information concerning these metrics as measured by us, see “Management’s Discussion and Analysis of Financial Condition and Results of
Operations” in our most recent periodic report filed with the U.S. Securities and Exchange Commission, or the SEC, which is available on the SEC’s website at www.sec.gov. Additional
information will be made available in our periodic report that will be filed with the SEC for our most recently completed period and other filings that we make from time to time with the SEC.

Unless otherwise stated, statistical information regarding our users and their activities is determined by calculating the daily average of the selected activity for the most recently completed
quarter.

While these metrics are determined based on what we believe to be reasonable estimates of our user base for the applicable period of measurement, there are inherent challenges in
measuring how our products are used across large populations globally. For example, there may be individuals who attempt to create accounts for malicious purposes, including at scale, even
though we forbid that in our Terms of Service and Community Guidelines. We implement measures in our user registration process and through other technical measures to prevent, detect and
suppress that behavior, although we have not determined the number of such accounts. Changes in our products, infrastructure, mobile operating systems, or metric tracking system, or the
introduction of new products, may impact our ability to accurately determine active users or other metrics and we may not determine such inaccuracies promptly. We also believe that we don’t
capture all data regarding each of our active users. Technical issues may result in data not being recorded from every user’s application. For example, because some Snapchat features can be
used without internet connectivity, we may not count a DAU because we don’t receive timely notice that a user has opened the Snapchat application. This undercounting may increase as we
grow in Rest of World markets where users may have poor connectivity. We do not adjust our reported metrics to reflect this underreporting. We believe that we have adequate controls to
collect user metrics, however, there is no uniform industry standard. We continually seek to identify these technical issues and improve both our accuracy and precision, including ensuring that
our investors and others can understand the factors impacting our business, but these technical issues and new issues may continue in the future, including if there continues to be no uniform
industry standard.

3
Note Regarding User Metrics and Other Data (Continued)
Some of our demographic data may be incomplete or inaccurate. For example, because users self-report their dates of birth, our age-demographic data may differ from our users’ actual ages.
And because users who signed up for Snapchat before June 2013 were not asked to supply their date of birth, we may exclude those users from our age demographics or estimate their ages
based on a sample of the self-reported ages that we do have. If our active users provide us with incorrect or incomplete information regarding their age or other attributes, then our estimates
may prove inaccurate and fail to meet investor expectations.

We count a DAU only when a user visits Snapchat through our applications or websites and only once per user per day. We believe this methodology more accurately measures our user
engagement. We have multiple pipelines of user data that we use to determine whether a user has visited Snapchat through our applications or websites during a particular day, and becoming
a DAU. This provides redundancy in the event one pipeline of data were to become unavailable for technical reasons, and also gives us redundant data to help measure how users interact with
our application.

If we fail to maintain an effective analytics platform, our metrics calculations may be inaccurate. We regularly review, have adjusted in the past, and are likely in the future to adjust our
processes for calculating our internal metrics to improve their accuracy. As a result of such adjustments, our DAUs or other metrics may not be comparable to those in prior periods. Our
measures of DAUs may differ from estimates published by third parties or from similarly titled metrics of our competitors due to differences in methodology or data used.