Snap Inc.

Good afternoon, everyone, and welcome to Snap Incorporated's first quarter 2024 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 first quarter 2024 earnings conference call. With us today are Evan Spiegel, chief executive officer and co-founder, 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 these forward-looking statements, Please refer to the press release we issued today, as well as risks described in our most recent Form 10-K or 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 certain other items. 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. I'm excited to share the progress we are making on our strategic priorities and the momentum we are building to capitalize on the long-term potential of our business. I'm deeply inspired by the dedication and efforts so many of our team members have put into serving our community and our partners, and it is gratifying to see our efforts beginning to bear fruit. On our call today, I'll open with some observations about our strategic direction and key developments, and then you'll hear from Derek. The full financial detail is in our investor letter, but going forward, we'll also be giving more context on the earnings call. We remain committed to executing against our three strategic priorities, accelerating and diversifying our revenue growth, growing our community and deepening their engagement, and leading in augmented reality. The most important strategic priority we set out for 2024 is accelerating and diversifying revenue growth. We have made significant progress to start the year with revenue growing 21% year over year, an acceleration of 16 percentage points over the prior quarter growth rate, which was driven by improvements we have made to our advertising platform and an increase in demand for our advertising solutions, while also benefiting from the impact of an improved operating environment. Our large, hard-to-reach audience, brand-safe environment, and continued innovation and progress on our advertising platform have made us a valuable partner for businesses that want to reach the next generation. Our second strategic priority, designing innovative products and services that enhance people's relationships with their friends, family, and the world, continues to drive the growth of our global community. In Q1, we reached 422 million daily active users, an increase of 39 million, or 10% year-over-year. We continue to broaden and deepen engagement with our content platform with the number of viewers and total time spent watching content growing globally year over year. Our focus on visual communication between friends and family is a strategic advantage that has enabled us to reach more than 75% of 13 to 34 year olds in over 25 countries, with these countries representing more than 50% of the global advertising market. Relationships are what drive the depth of engagement on our platform. Our goal is to ensure that Snapchat helps enhance relationships with the people who matter most. These relationships lead to increased daily active usage of our platform and happier members of our community. Four out of five Snapchatters believe that connecting with friends is the simplest way to feel better. This year, we are particularly focused on helping lightly engaged new and resurrected Snapchatters build relationships on our platform. Building just one or two close relationships on Snapchat can dramatically increase the number of active days for these cohorts while simultaneously leading to a happier and healthier community. Over 90% of Snapchatters say they feel comfortable, happy, and connected when they use Snapchat, and Snapchat is ranked as the number one happiest platform when compared to other apps. We've been working hard to improve our advertising platform by helping our partners transition to new ways of measuring and optimizing their advertising spend in order to provide improved ROAS. In Q1, ongoing momentum with our 7-0 pixel purchase optimization model led to a more than 75% increase in purchase-related conversions year over year. In addition, we are excited by the progress we're seeing with our small and medium-sized advertising partners. Today, small and medium-sized businesses and creators can promote their services, content, or products and reach new audiences, all with just a few taps within the Snapchat application. This has been instrumental in significantly accelerating the number of SMB advertisers on Snapchat, which increased 85% year-over-year. As we look forward, the deliberate actions we've taken with our cost structure have cleared a path to meaningful adjusted EBITDA profitability and positive free cash flow. We have invested heavily in cloud infrastructure over the past year in order to improve the performance of our advertising products and deepen engagement on our platform. We will continue to calibrate our investments carefully moving forward to ensure we build on this momentum while also realizing the operating leverage necessary to drive improved financial performance. We believe that a strong financial foundation and track record of innovation are critical inputs into fulfilling our vision of computing overlaid on the world. This is our third strategic priority. We have never worked on anything as profound and meaningful as augmented reality. AR enables us to surface digital experiences seamlessly in the world around us, transforming the way we use computing in our daily lives. Our AR products and services are driving major impact at scale today. On average, over 300 million people engage with augmented reality every single day on Snapchat. Our community plays with AR lenses billions of times per day on average, and our AR creator community has built millions of lenses using our Lens Studio software. Having a large, engaged AR audience and creator community enables us to innovate rapidly. This unique position has allowed us to develop a lead in augmented reality over the last decades. by leveraging one of the world's most used cameras, developing highly advanced technology and tools, and growing a vibrant AR creator ecosystem. We believe that our large and growing community, an innovative and engaging service that continues to evolve, and a strong balance sheet with positive free cash flow positions us well to achieve our long-term vision for augmented reality, which we believe will be one of the most meaningful advancements in computing that the world has ever seen. With that, I'd like to turn the call over to Derek to speak about our financials.