Snap Inc.

Good afternoon, everyone, and welcome to SnapEats' third quarter 2022 earnings conference call. At this time, participants are in a listen-only mode. I would now like to turn the call over to David Ometer, head of investor relations.

Thank you, and good afternoon, everyone. Welcome to Snap's third quarter 2022 earnings conference call. With us today are Evan Spiegel, chief executive officer and co-founder, Jerry Hunter, chief operating officer, and Derek Anderson, Chief Financial Officer. Please refer to our investor relations website at investor.snap.com to find today's press release, slides, investor letter, and investor presentation. This conference call includes forward-looking statements which are based on our assumptions as of today. Actual results may differ materially from those expressed in these forward-looking statements, and we make no obligation to update our disclosures. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release we issued today, as well as risks described in our most recent Form 10-Q, particularly in the section titled Risk Factors. Today's call will include both GAAP and non-GAAP measures. Reconciliations between the two can be found in today's press release. Please note that when we discuss all of our expense figures, They will exclude stock-based compensation and related payroll taxes, as well as depreciation and amortization and non-recurring charges. Please refer to our filings with the SEC to understand how we calculate any of the metrics discussed on today's call. With that, I'd like to turn the call over to Evan.

Hi, everyone, and thank you all for joining us. While our business continued to face significant headwinds this quarter, we took action to further focus our business on our three strategic priorities of growing our community and deepening their engagement with our products, re-accelerating and diversifying our revenue growth, and investing in augmented reality. We believe that we can be successful in this new operating environment, but we must rigorously prioritize our investments and continue to delight our community with our products while driving success for our advertising partners. Growing our community and engagement is one of our most important inputs to long-term success because it increases our overall revenue opportunity and strengthens our network effects. Our team remains focused on expanding our product offering and deepening engagement with our global community, which increased 19% year-over-year to reach 363 million daily active users. Our revenue grew 6% year-over-year to 1.13 billion, and we generated adjusted EBITDA of 73 million and free cash flow of 18 million. We are focused on increasing our share of wallet as growth in the overall digital advertising segment flows by working to increase the return on advertising spend delivered by our direct response advertising platform, as we believe these are the most defensible advertising budgets in a challenged economic environment. To achieve this, we are investing in driving scalable, lower funnel performance for our advertising partners and making improvements to our ad platform and auction dynamics so that we can continue to deliver strong returns on advertising spend. Our camera has evolved into a leading platform for augmented reality. Our AR products and services are already driving a major impact at scale today as Snapchatters use our services to shop, play, learn, explore, and entertain themselves. This quarter, we announced several new valuable partnerships, innovative AR experiences, and new AR features and capabilities in Lens Studio. Over 250 million people engage with augmented reality on Snapchat every day. Accelerating our lead in augmented reality helps us build a durable competitive advantage that comes from investing over the long term, building sophisticated technical tools and capabilities, and growing a platform that is increasingly differentiated and difficult to replicate. This momentum and the creative energy of the Snapchat community makes us incredibly excited about the future of augmented reality. As part of our reprioritization efforts, we have reorganized our team to better meet the challenges of the current environment and to make as much progress as possible as quickly as possible in the areas of our business that we are able to control. In particular, there is a significant opportunity to improve coordination and prioritization across our engineering, sales, and product teams. In an effort to realize this opportunity, we promoted Jerry Hunter to Chief Operating Officer. Jerry leads our monetization efforts across our three operating regions, EMEA, APAC, and Americas, as well as our engineering, growth, partnerships and content, AR enterprise, and SMB teams. Cherry has repeatedly demonstrated operational rigor at scale, leading our business through several challenging transitions, including the build out of our advertising platform, the rebuild of our Android product, our infrastructure optimizations, and most recently, significant investments in our platform integrity team. With that, I'm excited to introduce Cherry.