04-24-2021, 04:11 PM
Snap Q1 earnings report is pretty good
<!-- SC_OFF --><div class="md"><p><strong>Results</strong> </p> <p><a href="https://s25.q4cdn.com/442043304/files/doc_financials/2021/q1/Q1%E2%80%9921-Earnings-Release-Final.pdf">Link to report (PDF)</a></p> <table><thead> <tr> <th align="left">Particular</th> <th align="left">Q1 2021 (In thousands)</th> <th align="left">Q12020 (In thousands)</th> <th align="left">Percentage Change</th> </tr> </thead><tbody> <tr> <td align="left">Revenue</td> <td align="left">769,584</td> <td align="left">462,478</td> <td align="left">66%</td> </tr> <tr> <td align="left">Net Loss</td> <td align="left">(286,882)</td> <td align="left">(305,936)</td> <td align="left">(6)%</td> </tr> <tr> <td align="left">Adj. EBITDA</td> <td align="left">(1,709)</td> <td align="left">(81,237)</td> <td align="left">98%</td> </tr> <tr> <td align="left">Cash Flow from ops</td> <td align="left">136,886</td> <td align="left">6,283</td> <td align="left">2079%</td> </tr> <tr> <td align="left">FCF</td> <td align="left">126,035</td> <td align="left">(4,608)</td> <td align="left">2,835</td> </tr> </tbody></table> <p>DAU growth is also solid </p> <blockquote> <p>• DAUs were 280 million in Q1 2021, an increase of 51 million, or 22%, year-over-year. </p> <p>• DAUs increased sequentially and year-over-year in each of North America, Europe, and Rest of World. </p> <p>• DAUs increased sequentially and year-over-year on both iOS and Android platforms. </p> <p>• For the first time, the majority of our DAUs for the quarter were on the Android version of our application. </p> </blockquote> <p>The stock is up after the report dropped.</p> <p><strong>Outlook</strong> </p> <blockquote> <p>Q2 2021 Outlook </p> <p>• Revenue is estimated to be between $820 million and $840 million, compared to $454 million in Q2 2020. </p> <p>• Adjusted EBITDA is estimated to be between $(20) million and breakeven, compared to $(96) million in Q2 2020. </p> </blockquote> <p>That is almost 80% growth in revenue year over year at the lower end, very impressive. </p> <p><strong>Opinion</strong> (Ignore this)</p> <p>I think this seems like a business about to finally turn the corner and become a cash flow machine. The growth figures are really great and they are starting to generate some cashflows. It is still very expensive but at present it is kinda justifying it price with great numbers. At current prices it is trading at 46X Sales. It will need to continue growing at this rate for a few more years to justify it's price. </p> <p>Doing some bad back of envelope calculation, assuming a 12x sales multiple in 2030, (Google is trading at close to 9X sales right now.) and a return expectation of 10%. It will need to grow at close to 28% through out the decade to get that return. I know this mental model is very shoddy but it is very fun to play around with and get what sort of growth figures is required to get great returns.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/EfficientInflation67"> /u/EfficientInflation67 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/mxdrej/snap_q1_earnings_report_is_pretty_good/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/mxdrej/snap_q1_earnings_report_is_pretty_good/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p><strong>Results</strong> </p> <p><a href="https://s25.q4cdn.com/442043304/files/doc_financials/2021/q1/Q1%E2%80%9921-Earnings-Release-Final.pdf">Link to report (PDF)</a></p> <table><thead> <tr> <th align="left">Particular</th> <th align="left">Q1 2021 (In thousands)</th> <th align="left">Q12020 (In thousands)</th> <th align="left">Percentage Change</th> </tr> </thead><tbody> <tr> <td align="left">Revenue</td> <td align="left">769,584</td> <td align="left">462,478</td> <td align="left">66%</td> </tr> <tr> <td align="left">Net Loss</td> <td align="left">(286,882)</td> <td align="left">(305,936)</td> <td align="left">(6)%</td> </tr> <tr> <td align="left">Adj. EBITDA</td> <td align="left">(1,709)</td> <td align="left">(81,237)</td> <td align="left">98%</td> </tr> <tr> <td align="left">Cash Flow from ops</td> <td align="left">136,886</td> <td align="left">6,283</td> <td align="left">2079%</td> </tr> <tr> <td align="left">FCF</td> <td align="left">126,035</td> <td align="left">(4,608)</td> <td align="left">2,835</td> </tr> </tbody></table> <p>DAU growth is also solid </p> <blockquote> <p>• DAUs were 280 million in Q1 2021, an increase of 51 million, or 22%, year-over-year. </p> <p>• DAUs increased sequentially and year-over-year in each of North America, Europe, and Rest of World. </p> <p>• DAUs increased sequentially and year-over-year on both iOS and Android platforms. </p> <p>• For the first time, the majority of our DAUs for the quarter were on the Android version of our application. </p> </blockquote> <p>The stock is up after the report dropped.</p> <p><strong>Outlook</strong> </p> <blockquote> <p>Q2 2021 Outlook </p> <p>• Revenue is estimated to be between $820 million and $840 million, compared to $454 million in Q2 2020. </p> <p>• Adjusted EBITDA is estimated to be between $(20) million and breakeven, compared to $(96) million in Q2 2020. </p> </blockquote> <p>That is almost 80% growth in revenue year over year at the lower end, very impressive. </p> <p><strong>Opinion</strong> (Ignore this)</p> <p>I think this seems like a business about to finally turn the corner and become a cash flow machine. The growth figures are really great and they are starting to generate some cashflows. It is still very expensive but at present it is kinda justifying it price with great numbers. At current prices it is trading at 46X Sales. It will need to continue growing at this rate for a few more years to justify it's price. </p> <p>Doing some bad back of envelope calculation, assuming a 12x sales multiple in 2030, (Google is trading at close to 9X sales right now.) and a return expectation of 10%. It will need to grow at close to 28% through out the decade to get that return. I know this mental model is very shoddy but it is very fun to play around with and get what sort of growth figures is required to get great returns.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/EfficientInflation67"> /u/EfficientInflation67 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/mxdrej/snap_q1_earnings_report_is_pretty_good/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/mxdrej/snap_q1_earnings_report_is_pretty_good/">[comments]</a></span>Kind Regards R