1、Table of ContentsUNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549_FORM 10-Q_(Mark One)QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended March 31,2024orTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURIT

2、IES EXCHANGE ACT OF 1934For the transition period from _to_Commission File Number:001-38017_SNAP INC.(Exact name of registrant as specified in its charter)_Delaware45-5452795(State or other jurisdiction ofincorporation or organizations)(I.R.S.EmployerIdentification Number)3000 31st StreetSanta Monic

3、a,California 90405(Address of principal executive offices,including zip code)(310)399-3339(Registrants telephone,including area code)_Securities registered pursuant to Section 12(b)of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredClass A Common Stock,par value$

4、0.00001 per shareSNAPNew York Stock ExchangeIndicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934(Exchange Act)duringthe preceding 12 months(or for such shorter period that the registrant was required t

5、o file such reports),and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T duringthe preceding 12 months(or

6、for such shorter period that the registrant was required to submit such files).Yes No Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or an emerging growthcompany.See the definitions of“large accelera

7、ted filer,”“accelerated filer,”“smaller reporting company,”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth companyIf an emerging growth company,indicate by check mark if the registrant

8、 has elected not to use the extended transition period for complying with any new or revised financialaccounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act).Yes No Indic

9、ate the number of shares outstanding of each of the issuers classes of common stock,as of the latest practicable date.ClassNumber of Shares OutstandingClass A common stock,$0.00001 par value1,386,883,641 shares outstanding as of April 23,2024Class B common stock,$0.00001 par value22,528,406 shares o

10、utstanding as of April 23,2024Class C common stock,$0.00001 par value231,626,943 shares outstanding as of April 23,2024Table of ContentsTABLE OF CONTENTSPageNote Regarding Forward-Looking Statements3Note Regarding User Metrics and Other Data5PART I-FINANCIAL INFORMATIONItem 1.Financial Statements6Co

11、nsolidated Statements of Cash Flows6Consolidated Statements of Operations7Consolidated Statements of Comprehensive Income(Loss)8Consolidated Balance Sheets9Consolidated Statements of Stockholders Equity10Notes to Consolidated Financial Statements11Item 2.Managements Discussion and Analysis of Financ

12、ial Condition and Results of Operations25Item 3.Quantitative and Qualitative Disclosures About Market Risk40Item 4.Controls and Procedures41PART II-OTHER INFORMATIONItem 1.Legal Proceedings42Item 1A.Risk Factors43Item 2.Unregistered Sales of Equity Securities and Use of Proceeds84Item 3.Defaults Upo

13、n Senior Securities84Item 4.Mine Safety Disclosures84Item 5.Other Information84Item 6.Exhibits85Signatures86Snap Inc.,“Snapchat,”and our other registered and common-law trade names,trademarks,and service marks appearing in this Quarterly Report onForm 10-Q are the property of Snap Inc.or our subsidi

14、aries.2Table of ContentsNOTE REGARDING FORWARD-LOOKING STATEMENTSThis Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933,asamended,or the Securities Act,and Section 21E of the Securities Exchange Act of 1934,as amended,or

15、 the Exchange Act,about us and our industry thatinvolve substantial risks and uncertainties.All statements other than statements of historical facts contained in this report,including statements regardingguidance,our future results of operations or financial condition,our future stock repurchase pro

16、grams or stock dividends,business strategy and plans,usergrowth and engagement,product initiatives,objectives of management for future operations,and advertiser and partner offerings,are forward-lookingstatements.In some cases,you can identify forward-looking statements because they contain words su

17、ch as“anticipate,”“believe,”“contemplate,”“continue,”“could,”“estimate,”“expect,”“going to,”“intend,”“may,”“plan,”“potential,”“predict,”“project,”“should,”“target,”“will,”or“would”or the negative ofthese words or other similar terms or expressions.We caution you that the foregoing may not include al

18、l of the forward-looking statements made in this report.You should not rely on forward-looking statements as predictions of future events.We have based the forward-looking statements contained in thisQuarterly Report on Form 10-Q primarily on our current expectations and projections about future eve

19、nts and trends,including our financial outlook,macroeconomic uncertainty,and geo-political conflicts,that we believe may continue to affect our business,financial condition,results of operations,andprospects.These forward-looking statements are subject to risks,uncertainties,and other factors descri

20、bed in“Risk Factors”and elsewhere in this QuarterlyReport on Form 10-Q,including among other things:our financial performance,including our revenues,cost of revenues,operating expenses,and our ability to attain and sustain profitability;our ability to generate and sustain positive cash flow;our abil

21、ity to attract and retain users and partners;our ability to attract and retain advertisers;our ability to compete effectively with existing competitors and new market entrants;our ability to effectively manage our growth and future expenses;our ability to comply with modified or new laws,regulations

22、,and executive actions applying to our business;our ability to maintain,protect,and enhance our intellectual property;our ability to successfully expand in our existing market segments and penetrate new market segments;our ability to attract and retain qualified team members and key personnel;our ab

23、ility to repay or refinance outstanding debt,or to access additional financing;future acquisitions of or investments in complementary companies,products,services,or technologies;andthe potential adverse impact of climate change,natural disasters,health epidemics,macroeconomic conditions,and war or o

24、ther armedconflict on our business,operations,and the markets and communities in which we and our partners,advertisers,and users operate.Moreover,we operate in a very competitive and rapidly changing environment.New risks and uncertainties emerge from time to time,and it is notpossible for us to pre

25、dict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form10-Q.The results,events,and circumstances reflected in the forward-looking statements may not be achieved or occur,and actual results,events,orcircumstances could di

26、ffer materially from those described in the forward-looking statements.In addition,statements that“we believe”and similar statements reflect our beliefs and opinions on the relevant subject.These statements are based oninformation available to us as of the date of this Quarterly Report on Form 10-Q.

27、And while we believe that information provides a reasonable basis for thesestatements,that information may be limited or incomplete.Our statements should not be read to indicate that we have conducted an exhaustive inquiry into,orreview of,all relevant information.These statements are inherently unc

28、ertain,and investors are cautioned not to unduly rely on these statements.The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made.We undertake no obligation to update any forward-looking statements made in this3T

29、able of Contentsreport to reflect events or circumstances after the date of this report or to reflect new information or the occurrence of unanticipated events,including futuredevelopments related to geo-political conflicts and macroeconomic conditions,except as required by law.We may not actually a

30、chieve the plans,intentions,orexpectations disclosed in our forward-looking statements,and you should not place undue reliance on our forward-looking statements.Our forward-lookingstatements do not reflect the potential impact of any future acquisitions,dispositions,joint ventures,restructurings,leg

31、al settlements,or investments.Investors and others should note that we may announce material business and financial information to our investors using our websites(),filings with the U.S.Securities and Exchange Commission,or SEC,webcasts,press releases,investor letters,and conference calls.We usethe

32、se mediums,including Snapchat and our website,to communicate with our members and the public about our company,our products,and other issues.It ispossible that the information that we make available may be deemed to be material information.We therefore encourage investors and others interested in ou

33、rcompany to review the information that we make available on our websites.4Table of ContentsNOTE REGARDING USER METRICS AND OTHER DATAWe define a Daily Active User,or DAU,as a registered and logged-in Snapchat user who visits Snapchat through our applications or websites atleast once during a define

34、d 24-hour period.We calculate average DAUs for a particular quarter by adding the number of DAUs on each day of that quarter anddividing that sum by the number of days in that quarter.DAUs are broken out by geography because markets have different characteristics.We define averagerevenue per user,or

35、 ARPU,as quarterly revenue divided by the average DAUs.For purposes of calculating ARPU,revenue by user geography is apportionedto each region based on our determination of the geographic location in which advertising impressions are delivered,as this approximates revenue based onuser activity.This

36、allocation differs from our components of revenue disclosure in the notes to our consolidated financial statements,where revenue is based onthe billing address of the advertising customer.For information concerning these metrics as measured by us,see“Managements Discussion and Analysis ofFinancial C

37、ondition and Results of Operations.”Unless otherwise stated,statistical information regarding our users and their activities is determined by calculating the daily average of the selectedactivity for the most recently completed quarter included in this report.While these metrics are determined based

38、 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 tocreate accounts for malicious purposes,in

39、cluding at scale,even though we forbid that in our Terms of Service and Community Guidelines.We implementmeasures in our user registration process and through other technical measures to prevent,detect,and suppress that behavior,although we have not determinedthe number of such accounts.Changes in o

40、ur products,infrastructure,mobile operating systems,or metric tracking system,or the introduction of new products,may impact ourability to accurately determine active users or other metrics and we may not determine such inaccuracies promptly.We also believe that we dont capture alldata regarding eac

41、h of our active users.Technical issues may result in data not being recorded from every users application.For example,because someSnapchat features can be used without internet connectivity,we may not count a DAU because we dont receive timely notice that a user has opened theSnapchat application.Th

42、is undercounting may increase as we grow in Rest of World markets where users may have poor connectivity.We do not adjust ourreported metrics to reflect this underreporting.We believe that we have adequate controls to collect user metrics,however,there is no uniform industrystandard.We continually s

43、eek to identify these technical issues and improve both our accuracy and precision,including ensuring that our investors and otherscan understand the factors impacting our business,but these technical issues and new issues may continue in the future,including if there continues to be nouniform indus

44、try standard.Some of our demographic data may be incomplete or inaccurate.For example,because users self-report their dates of birth,our age-demographicdata 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 birt

45、h,wemay 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 usersprovide us with incorrect or incomplete information regarding their age or other attributes,then our estimates may prove inaccurate and fail to

46、meet investorexpectations.We count a DAU only when a user visits Snapchat through our applications or websites and only once per user per day.We believe thismethodology more accurately measures our user engagement.We have multiple pipelines of user data that we use to determine whether a user has vi

47、sitedSnapchat through our applications or websites during a particular day,and becoming a DAU.This provides redundancy in the event one pipeline of data wereto become unavailable for technical reasons,and also gives us redundant data to help measure how users interact with our application.If we fail

48、 to maintain an effective analytics platform,our metrics calculations may be inaccurate.We regularly review,have adjusted in the past,andare 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 otherme

49、trics may not be comparable to those in prior periods.Our measures of DAUs may differ from estimates published by third parties or from similarly titledmetrics of our competitors due to differences in methodology or data used.5Table of ContentsPART I-FINANCIAL INFORMATIONItem 1.Financial StatementsS

50、nap Inc.Consolidated Statements of Cash Flows(in thousands)(unaudited)Three Months Ended March 31,20242023Cash flows from operating activitiesNet loss$(305,090)$(328,674)Adjustments to reconcile net loss to net cash provided by(used in)operating activities:Depreciation and amortization41,713 35,220

51、Stock-based compensation263,752 314,931 Amortization of debt issuance costs1,742 1,836 Losses(gains)on debt and equity securities,net8,968(10,833)Other(16,612)(10,396)Change in operating assets and liabilities,net of effect of acquisitions:Accounts receivable,net of allowance162,207 288,373 Prepaid

52、expenses and other current assets(13,629)(13,204)Operating lease right-of-use assets13,575 17,658 Other assets(5,142)850 Accounts payable(34,089)(36,972)Accrued expenses and other current liabilities(18,381)(90,191)Operating lease liabilities(13,930)(18,550)Other liabilities3,268 1,054 Net cash prov

53、ided by(used in)operating activities88,352 151,102 Cash flows from investing activitiesPurchases of property and equipment(50,448)(47,630)Purchases of strategic investments(4,480)Purchases of marketable securities(465,672)(874,053)Sales of marketable securities 5,351 Maturities of marketable securit

54、ies384,928 924,323 Other9 2,327 Net cash provided by(used in)investing activities(131,183)5,838 Cash flows from financing activitiesProceeds from the exercise of stock options69 29 Repurchases of Class A non-voting common stock(235,114)Deferred payments for acquisitions(2,028)Repurchases of converti

55、ble notes(440,706)Net cash provided by(used in)financing activities(675,751)(1,999)Change in cash,cash equivalents,and restricted cash(718,582)154,941 Cash,cash equivalents,and restricted cash,beginning of period1,782,462 1,423,776 Cash,cash equivalents,and restricted cash,end of period$1,063,880$1,

56、578,717 See Notes to Consolidated Financial Statements.6Table of ContentsSnap Inc.Consolidated Statements of Operations(in thousands,except per share amounts)(unaudited)Three Months Ended March 31,20242023Revenue$1,194,773$988,608 Costs and expenses:Cost of revenue574,749 439,986 Research and develo

57、pment449,759 455,112 Sales and marketing276,034 268,433 General and administrative227,463 190,341 Total costs and expenses1,528,005 1,353,872 Operating loss(333,232)(365,264)Interest income39,898 37,948 Interest expense(4,743)(5,885)Other income(expense),net(81)11,372 Loss before income taxes(298,15

58、8)(321,829)Income tax benefit(expense)(6,932)(6,845)Net loss$(305,090)$(328,674)Net loss per share attributable to Class A,Class B,and Class C common stockholders(Note 3):Basic$(0.19)$(0.21)Diluted$(0.19)$(0.21)Weighted average shares used in computation of net loss per share:Basic1,647,3871,581,370

59、Diluted1,647,3871,581,370See Notes to Consolidated Financial Statements.7Table of ContentsSnap Inc.Consolidated Statements of Comprehensive Income(Loss)(in thousands)(unaudited)Three Months Ended March 31,20242023Net loss$(305,090)$(328,674)Other comprehensive income(loss),net of taxUnrealized gain(

60、loss)on marketable securities,net of tax(3,604)9,395 Foreign currency translation(2,777)2,915 Total other comprehensive income(loss),net of tax(6,381)12,310 Total comprehensive loss$(311,471)$(316,364)See Notes to Consolidated Financial Statements.8Table of ContentsSnap Inc.Consolidated Balance Shee

61、ts(in thousands,except par value)March 31,2024December 31,2023(unaudited)AssetsCurrent assetsCash and cash equivalents$1,060,393$1,780,400 Marketable securities1,850,622 1,763,680 Accounts receivable,net of allowance1,108,357 1,278,176 Prepaid expenses and other current assets167,385 153,587 Total c

62、urrent assets4,186,757 4,975,843 Property and equipment,net426,363 410,326 Operating lease right-of-use assets511,117 516,862 Intangible assets,net127,658 146,303 Goodwill1,691,524 1,691,827 Other assets223,982 226,597 Total assets$7,167,401$7,967,758 Liabilities and Stockholders EquityCurrent liabi

63、litiesAccounts payable$246,217$278,961 Operating lease liabilities36,649 49,321 Accrued expenses and other current liabilities829,579 805,836 Total current liabilities1,112,445 1,134,118 Convertible senior notes,net3,301,466 3,749,400 Operating lease liabilities,noncurrent553,741 546,279 Other liabi

64、lities68,401 123,849 Total liabilities5,036,053 5,553,646 Commitments and contingencies(Note 8)Stockholders equityClass A non-voting common stock,$0.00001 par value.3,000,000 shares authorized,1,437,758 shares issued,1,388,965 shares outstanding at March 31,2024,and 3,000,000 shares authorized,1,440

65、,541 shares issued,1,391,341 shares outstanding at December 31,2023.14 14 Class B voting common stock,$0.00001 par value.700,000 shares authorized,22,528 shares issued andoutstanding at March 31,2024 and December 31,2023.Class C voting common stock,$0.00001 par value.260,888 shares authorized,231,62

66、7 shares issued andoutstanding at March 31,2024 and December 31,2023.2 2 Treasury stock,at cost.48,793 and 49,200 shares of Class A non-voting common stock at March 31,2024 andDecember 31,2023,respectively.(475,939)(479,903)Additional paid-in capital14,873,261 14,613,404 Accumulated deficit(12,266,7

67、40)(11,726,536)Accumulated other comprehensive income(loss)750 7,131 Total stockholders equity2,131,348 2,414,112 Total liabilities and stockholders equity$7,167,401$7,967,758 See Notes to Consolidated Financial Statements.9Table of ContentsSnap Inc.Consolidated Statements of Stockholders Equity(in

68、thousands)(unaudited)Three Months Ended March 31,20242023SharesAmountSharesAmountClass A non-voting common stockBalance,beginning of period1,391,341$14 1,319,930$13 Shares issued in connection with exercise of stock options under stock-based compensation plans5 3 Issuance of Class A non-voting commo

69、n stock for vesting of restricted stock units and restricted stock awards,net18,232 20,745 Conversion of Class B voting common stock to Class A non-voting common stock 8 Repurchases of Class A non-voting common stock(21,020)Reissuances of Class A non-voting common stock for vesting of restricted sto

70、ck units407 370 Balance,end of period1,388,96514 1,341,05613 Class B voting common stockBalance,beginning of period22,528 22,529 Shares issued in connection with exercise of stock options under stock-based compensation plans 1 Conversion of Class B voting common stock to Class A non-voting common st

71、ock(8)Balance,end of period22,528 22,522 Class C voting common stockBalance,beginning of period231,6272 231,6272 Issuance of Class C voting common stock for settlement of restricted stock units,net Balance,end of period231,6272 231,6272 Treasury stockBalance,beginning of period49,200(479,903)51,312(

72、500,514)Repurchases of Class A non-voting common stock21,020(235,114)Retirement of Class A non-voting common stock(21,020)235,114 Reissuances of Class A non-voting common stock for vesting of restricted stock units(407)3,964(370)3,608 Balance,end of period48,793(475,939)50,942(496,906)Additional pai

73、d-in capitalBalance,beginning of period14,613,404 13,309,828 Stock-based compensation expense263,752 314,077 Shares issued in connection with exercise of stock options under stock-based compensation plans68 29 Reissuances of Class A non-voting common stock for vesting of restricted stock units(3,963

74、)(3,608)Balance,end of period14,873,261 13,620,326 Accumulated deficitBalance,beginning of period(11,726,536)(10,214,657)Net loss(305,090)(328,674)Retirement of Class A non-voting common stock(235,114)Balance,end of period(12,266,740)(10,543,331)Accumulated other comprehensive income(loss)Balance,be

75、ginning of period7,131(13,974)Other comprehensive income(loss),net of tax(6,381)12,310 Balance,end of period750(1,664)Total stockholders equity1,691,913$2,131,348 1,646,147$2,578,440 See Notes to Consolidated Financial Statements.10Table of ContentsSnap Inc.Notes to Consolidated Financial Statements

76、1.Description of Business and Summary of Significant Accounting PoliciesSnap Inc.is a technology company.Snap Inc.(“we,”“our,”or“us”),a Delaware corporation,is headquartered in Santa Monica,California.Our flagship product,Snapchat,is a visualmessaging application that was created to help people comm

77、unicate through short videos and images called“Snaps.”Basis of PresentationThe accompanying unaudited consolidated financial statements are prepared in accordance with U.S.generally accepted accounting principles(“GAAP”)for interim financial information.Our consolidated financial statements include

78、the accounts of Snap Inc.and our wholly owned subsidiaries.Allintercompany transactions and balances have been eliminated in consolidation.Our fiscal year ends on December 31.These unaudited interim consolidatedfinancial statements should be read in conjunction with the consolidated financial statem

79、ents and related notes included in our Annual Report on Form 10-K forthe fiscal year ended December 31,2023,as filed with the Securities and Exchange Commission(the“SEC”)in February 2024(the“Annual Report”).In our opinion,the unaudited interim consolidated financial statements include all adjustment

80、s of a normal recurring nature necessary for the fairpresentation of our financial position,results of operations,and cash flows.The results of operations for the three months ended March 31,2024 are notnecessarily indicative of the results to be expected for the year ending December 31,2024.There h

81、ave been no changes to our significant accounting policies described in our Annual Report that have had a material impact on our consolidatedfinancial statements and related notes.Use of EstimatesThe preparation of our consolidated financial statements in conformity with GAAP requires management to

82、make estimates and assumptions thataffect the reported amounts in the consolidated financial statements.Managements estimates are based on historical information available as of the date of theconsolidated financial statements and various other assumptions that we believe are reasonable under the ci

83、rcumstances.Actual results could differ from thoseestimates.Key estimates relate primarily to determining the fair value of assets and liabilities assumed in business combinations,evaluation of contingencies,uncertain tax positions,and the fair value of strategic investments.On an ongoing basis,mana

84、gement evaluates our estimates compared to historical experienceand trends,which form the basis for making judgments about the carrying value of assets and liabilities.Future Stock Split to be Effected in the Form of a Stock DividendIn July 2022,our board of directors determined that it was advisabl

85、e and in our best interest to approve a stock split to be effected in the form of aspecial dividend of one share of Class A common stock on each outstanding share of our common stock at a future date(the“Future Stock Split”).Inconnection with the Future Stock Split,we entered into certain agreements

86、(the“Co-Founder Agreements”)with Evan Spiegel and Robert Murphy,our co-founders,and certain of their respective affiliates requiring them,among other things,to convert shares of Class B common stock and Class C common stockinto Class A common stock under certain circumstances.The Future Stock Split

87、will not be declared and paid until the first business day following the date onwhich the average of the volume weighted average price(the“VWAP”)per share of Class A common stock equals or exceeds$40 per share for 65 consecutivetrading days.If this does not occur by July 21,2032,the Future Stock Spl

88、it will not be declared and paid,and the Co-Founder Agreements will terminate.In June 2023,in connection with a proposed settlement of a class-action lawsuit,and as amended in December 2023,we agreed to modify theconditions for the Future Stock Split,subject to various conditions,including judicial

89、approval of the settlement.In February 2024,the settlement wasapproved by the court and the class-action lawsuit was resolved.The Future Stock Split will not be declared and paid until the first business day following thedate on which(i)11Table of Contentsthe VWAP per share of Class A common stock e

90、quals or exceeds$40 per share for 90 consecutive trading days(the“90-Day VWAP”)and(ii)the ratio of the90-Day VWAP to$8.70 equals or exceeds the ratio of the average closing price of the S&P 500 Total Return index for the same 90 trading days for which the90-Day VWAP was calculated to 8,862.85.If thi

91、s does not occur by July 21,2032,the Future Stock Split will not be declared and paid,and the Co-FounderAgreements will terminate.No adjustments have been made to share or per share amounts for Class A common stock in the accompanying consolidated financial statements forthe effects of the Future St

92、ock Split as these triggering conditions have not been met.2.RevenueWe determine revenue recognition by first identifying the contract or contracts with a customer,identifying the performance obligations in thecontract,determining the transaction price,allocating the transaction price to the perform

93、ance obligations in the contract,and recognizing revenue when,or as,we satisfy a performance obligation.Revenue is recognized when control of the promised goods or services is transferred to our customers,in an amount that reflects the consideration weexpect to receive in exchange for those goods or

94、 services.We determine collectability by performing ongoing credit evaluations and monitoring customeraccounts receivable balances.Sales tax,including value added tax,is excluded from reported revenue.We generate substantially all of our revenues by offering various advertising products on Snapchat,

95、which include Snap Ads and AR Ads,referred toas advertising revenue.AR Ads include Sponsored Lenses,which allow users to interact with an advertisers brand by enabling branded augmented realityexperiences.The substantial majority of advertising revenue is generated from the display of advertisements

96、 on Snapchat through contractual agreements that areeither based on the number of advertising impressions delivered or on a fixed fee basis over a period of time.Revenue related to agreements based on thenumber of impressions delivered is recognized when the advertisement is served.Revenue related t

97、o fixed fee arrangements is recognized ratably over theservice period,typically less than 30 days in duration,and such arrangements do not contain minimum impression guarantees.In arrangements where another party is involved in providing specified services to a customer,we evaluate whether we are th

98、e principal or agent.Inthis evaluation,we consider if we obtain control of the specified goods or services before they are transferred to the customer,as well as other indicators suchas the party primarily responsible for fulfillment,inventory risk,and discretion in establishing price.For advertisin

99、g revenue arrangements where we are notthe principal,we recognize revenue on a net basis.For the periods presented,revenue for arrangements where we are the agent was not material.We also generate revenue from subscriptions and sales of hardware products.Sales of hardware products are reported net o

100、f allowances for returns.For the periods presented,all such revenue was not material.The following table represents our revenue disaggregated by geography based on the billing address of the customer:Three Months Ended March 31,20242023(in thousands)North America$733,388$632,560 Europe 200,092 155,6

101、15 Rest of world261,293 200,433 Total revenue$1,194,773$988,608(1)North America includes Mexico,the Caribbean,and Central America.(2)United States revenue was$710.8 million and$612.4 million for the three months ended March 31,2024 and 2023,respectively.(3)Europe includes Russia and Turkey.Effective

102、 March 2022,we halted advertising sales to Russian and Belarusian entities.(1)(2)(3)12Table of ContentsDeferred revenue related to advertising and subscriptions,included in accrued expenses and other current liabilities on our consolidated balancesheets,was$98.4 million and$93.7 million as of March

103、31,2024 and December 31,2023,respectively.We expect a substantial majority of our deferredrevenue to be realized in less than one year.3.Net Loss per ShareWe compute net loss per share using the two-class method required for multiple classes of common stock.We have three classes of authorizedcommon

104、stock for which voting rights differ by class.Basic net loss per share is computed by dividing net loss attributable to each class of stockholders by the weighted-average number of shares of stockoutstanding during the period,adjusted for restricted stock awards(“RSAs”)for which the risk of forfeitu

105、re has not yet lapsed.For the calculation of diluted net loss per share,net loss per share attributable to common stockholders for basic net loss per share is adjusted by theeffect of dilutive securities,including awards under our equity compensation plans.Diluted net loss per share attributable to

106、common stockholders is computedby dividing the resulting net loss attributable to common stockholders by the weighted-average number of fully diluted common shares outstanding.We use theifconverted method for calculating any potential dilutive effect of the convertible senior notes due in 2025,2026,

107、2027,and 2028(collectively,the“Convertible Notes”)on diluted net loss per share.The Convertible Notes would have a dilutive impact on net income per share when the average market priceof Class A common stock for a given period exceeds the respective conversion price of the Convertible Notes.For the

108、periods presented,our potentiallydilutive shares relating to stock options,restricted stock units(“RSUs”),RSAs,and Convertible Notes were not included in the computation of diluted net lossper share as the effect of including these shares in the calculation would have been anti-dilutive.The numerato

109、rs and denominators of the basic and diluted net loss per share computations for our common stock are calculated as follows:Three Months Ended March 31,20242023(in thousands,except per share data)Class AClass BClass CClass AClass BClass CNumerator:Net loss$(258,022)$(4,172)$(42,896)$(275,851)$(4,681

110、)$(48,142)Net loss attributable to common stockholders$(258,022)$(4,172)$(42,896)$(275,851)$(4,681)$(48,142)Denominator:Basic shares:Weighted-average common shares-Basic1,393,23222,528231,6271,327,22122,522231,627Diluted shares:Weighted-average common shares-Diluted1,393,23222,528231,6271,327,22122,

111、522231,627Net loss per share attributable to common stockholders:Basic$(0.19)$(0.19)$(0.19)$(0.21)$(0.21)$(0.21)Diluted$(0.19)$(0.19)$(0.19)$(0.21)$(0.21)$(0.21)The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have

112、been anti-dilutive for the periods presented:Three Months Ended March 31,20242023(in thousands)Stock options1,5803,155Unvested RSUs and RSAs145,364128,086Convertible Notes(if-converted)69,36889,37913Table of Contents4.Stockholders EquityWe maintain three share-based employee compensation plans:the 2

113、017 Equity Incentive Plan(the“2017 Plan”),the 2014 Equity Incentive Plan(the“2014 Plan”),and the 2012 Equity Incentive Plan(the“2012 Plan,”and collectively with the 2017 Plan and the 2014 Plan,the“Stock Plans”).The 2017 Planserves as the successor to the 2014 Plan and 2012 Plan and provides for the

114、grant of incentive stock options to employees,including employees of any parent orsubsidiary,and for the grant of nonstatutory stock options,stock appreciation rights,RSAs,RSUs,performance stock awards,performance cash awards,andother forms of stock awards to employees,directors,and consultants,incl

115、uding employees and consultants of our affiliates.Restricted Stock Units and Restricted Stock AwardsThe following table summarizes the RSU and RSA activity for the three months ended March 31,2024:Number of Class ASharesWeighted-AverageGrant DateFair Value(in thousands,except per share data)Unvested

116、 at December 31,2023157,130$12.82 Granted23,248$13.16 Vested(18,781)$15.55 Forfeited(16,233)$12.06 Unvested at March 31,2024145,364$12.61 All RSUs and RSAs vest on the satisfaction of a service-based condition.Total unrecognized compensation cost related to outstanding RSUs andRSAs was$1.5 billion a

117、s of March 31,2024 and is expected to be recognized over a weighted-average period of 2.0 years.The service condition for RSUs andRSAs is generally satisfied in equal monthly or quarterly installments over three to four years.Stock OptionsThe following table summarizes the stock option award activit

118、y under the Stock Plans for the three months ended March 31,2024:Number ofClass A SharesNumber ofClass B SharesWeighted-AverageExercisePriceWeighted-AverageRemainingContractualTerm(in years)AggregateIntrinsicValue(in thousands,except per share data)Outstanding at December 31,20231,6925$14.90 4.41$5,

119、225 Granted$Exercised(5)$13.33$Forfeited(112)$12.47$Outstanding at March 31,20241,5755$15.08 4.18$301(1)The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the closing marketprice of our Class A common stock as of March 3

120、1,2024 and December 31,2023.As of March 31,2024,there was no unrecognized compensation cost related to stock options granted under the Stock Plans.(1)14Table of ContentsStock-Based Compensation ExpenseTotal stock-based compensation expense by function was as follows:Three Months Ended March 31,20242

121、023(in thousands)Cost of revenue$1,815$1,885 Research and development174,519 219,850 Sales and marketing54,656 54,939 General and administrative32,762 38,257 Total$263,752$314,931 Stock RepurchasesIn October 2023,our board of directors authorized a stock repurchase program of up to$500.0 million of

122、our Class A common stock.During thefirst quarter of 2024,we repurchased and retired 21.0 million shares of our Class A common stock for an aggregate of$235.1 million,including costsassociated with the repurchases.As of March 31,2024,the remaining availability under the stock repurchase authorization

123、 was$75.9 million.This programwas completed in April 2024.5.Business Acquisitions2023 AcquisitionsFor the year ended December 31,2023,aggregate purchase consideration for business acquisitions was$73.1 million,which primarily consisted of$56.3 million in cash and$12.6 million recorded in other liabi

124、lities on our consolidated balance sheet.Of the aggregate purchase consideration,$42.8 millionwas allocated to goodwill and the remainder primarily to identifiable intangible assets.The acquired assets are expected to enhance our existing platform,technology,and workforce.The goodwill amount represe

125、nts synergies related to our existing platform expected to be realized from the business acquisitionsand assembled workforce.The associated goodwill and intangible assets are not deductible for tax purposes.6.Goodwill and Intangible AssetsThe changes in the carrying amount of goodwill for the three

126、months ended March 31,2024 were as follows:Goodwill(in thousands)Balance as of December 31,2023$1,691,827 Goodwill acquired Foreign currency translation(303)Balance as of March 31,2024$1,691,524 15Table of ContentsIntangible assets consisted of the following:As of March 31,2024Weighted-AverageRemain

127、ingUseful Life(Years)GrossCarryingAmountAccumulatedAmortizationNet(in thousands,except years)Domain names2.8$745$(563)$182 Technology2.7315,233(206,984)108,249 Patents8.739,373(20,146)19,227 Other6,000(6,000)Total intangible assets$361,351$(233,693)$127,658 As of December 31,2023Weighted-AverageRema

128、iningUseful Life(Years)GrossCarryingAmountAccumulatedAmortizationNet(in thousands,except years)Domain names3.0$745$(546)$199 Technology2.8323,313(197,608)125,705 Patents8.839,373(19,099)20,274 Other6,000(5,875)125 Total intangible assets$369,431$(223,128)$146,303 Amortization of intangible assets wa

129、s$18.6 million and$17.8 million for the three months ended March 31,2024 and 2023,respectively.As of March 31,2024,the estimated intangible asset amortization expense for the next five years and thereafter is as follows:EstimatedAmortization(in thousands)Remainder of 2024$41,404 202541,493 202620,27

130、9 202712,104 20284,323 Thereafter8,055 Total$127,658 7.Long-Term DebtConvertible Notes2028 NotesIn February 2022,we entered into a purchase agreement for the sale of an aggregate of$1.50 billion principal amount of convertible senior notes duein 2028(the“2028 Notes”)in a private offering to qualifie

131、d institutional buyers pursuant to Rule 144A under the Securities Act of 1933,as amended(the“Securities Act”).The net proceeds from the issuance of the 2028 Notes were$1.31 billion,net of debt issuance costs and cash used to purchase the capped call16Table of Contentstransactions(the“2028 Capped Cal

132、l Transactions”)discussed below.The debt issuance costs are amortized to interest expense using the effective interest ratemethod.The 2028 Notes are unsecured and unsubordinated obligations.Interest is payable in cash semi-annually in arrears beginning on September 1,2022 ata rate of 0.125%per year.

133、The 2028 Notes mature on March 1,2028 unless repurchased,redeemed,or converted in accordance with their terms prior to suchdate.The 2028 Notes are convertible into cash,shares of our Class A common stock,or a combination of cash and shares of our Class A common stock,atour election,at an initial con

134、version rate of 17.7494 shares of Class A common stock per$1,000 principal amount of 2028 Notes,which is equivalent to aninitial conversion price of approximately$56.34 per share of our Class A common stock.We may redeem for cash all or any portion of the 2028 Notes,at ouroption,on or after March 5,

135、2025 based on certain circumstances.2027 NotesIn April 2021,we entered into a purchase agreement for the sale of an aggregate of$1.15 billion principal amount of convertible senior notes due in2027(the“2027 Notes”)in a private offering to qualified institutional buyers pursuant to Rule 144A under th

136、e Securities Act.The net proceeds from theissuance of the 2027 Notes were$1.05 billion,net of debt issuance costs and cash used to purchase the capped call transactions(the“2027 Capped CallTransactions”)discussed below.The debt issuance costs are amortized to interest expense using the effective int

137、erest rate method.The 2027 Notes are unsecured and unsubordinated obligations which do not bear regular interest and for which the principal balance will not accrete.The 2027 Notes will mature on May 1,2027 unless repurchased,redeemed,or converted in accordance with their terms prior to such date.Th

138、e 2027 Notes are convertible into cash,shares of our Class A common stock,or a combination of cash and shares of our Class A common stock,atour election,at an initial conversion rate of 11.2042 shares of Class A common stock per$1,000 principal amount of 2027 Notes,which is equivalent to aninitial c

139、onversion price of approximately$89.25 per share of our Class A common stock.We may redeem for cash all or portions of the 2027 Notes,at ouroption,on or after May 5,2024 based on certain circumstances.2025 NotesIn April 2020,we entered into a purchase agreement for the sale of an aggregate of$1.0 bi

140、llion principal amount of convertible senior notes due in2025(the“2025 Notes”)in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act.The net proceeds from theissuance of the 2025 Notes were$888.6 million,net of debt issuance costs and cash used to purc

141、hase the capped call transactions(the“2025 Capped CallTransactions”)discussed below.The debt issuance costs are amortized to interest expense using the effective interest rate method.The 2025 Notes are unsecured and unsubordinated obligations.Interest is payable in cash semi-annually in arrears begi

142、nning on November 1,2020 ata rate of 0.25%per year.The 2025 Notes mature on May 1,2025 unless repurchased,redeemed,or converted in accordance with their terms prior to such date.The 2025 Notes are convertible into cash,shares of our Class A common stock,or a combination of cash and shares of our Cla

143、ss A common stock,atour election,at an initial conversion rate of 46.1233 shares of Class A common stock per$1,000 principal amount of 2025 Notes,which is equivalent to aninitial conversion price of approximately$21.68 per share of our Class A common stock.We may redeem for cash all or portions of t

144、he 2025 Notes,at ouroption,on or after May 6,2023 based on certain circumstances.2026 NotesIn August 2019,we entered into a purchase agreement for the sale of an aggregate of$1.265 billion principal amount of convertible senior notes duein 2026(the“2026 Notes”)in a private offering to qualified inst

145、itutional buyers pursuant to Rule 144A under the Securities Act.The net proceeds from theissuance of the 2026 Notes were$1.15 billion,net of debt issuance costs and cash used to purchase the capped call transactions(the“2026 Capped CallTransactions”)discussed below.The debt issuance costs are amorti

146、zed to interest expense using the effective interest rate method.17Table of ContentsThe 2026 Notes are unsecured and unsubordinated obligations.Interest is payable in cash semi-annually in arrears beginning on February 1,2020 at arate of 0.75%per year.The 2026 Notes mature on August 1,2026 unless re

147、purchased,redeemed,or converted in accordance with the terms prior to such date.The 2026 Notes are convertible into cash,shares of our Class A common stock,or a combination of cash and shares of our Class A common stock,atour election,at an initial conversion rate of 43.8481 shares of Class A common

148、 stock per$1,000 principal amount of 2026 Notes,which is equivalent to aninitial conversion price of approximately$22.81 per share of our Class A common stock.We may redeem for cash all or portions of the 2026 Notes,at ouroption,on or after August 6,2023 based on certain circumstances.Note Repurchas

149、esIn February 2024,we entered into various privately negotiated repurchase transactions(collectively,the“Note Repurchases”)with certain holders ofthe 2025 Notes and 2026 Notes,pursuant to which we agreed to repurchase$100.0 million in aggregate principal of the 2025 Notes and$351.2 million inaggrega

150、te principal of the 2026 Notes for a cash repurchase price of$440.7 million,including costs associated with the Note Repurchases.The NoteRepurchases resulted in a$8.8 million gain on extinguishment included within other income(expense),net on our consolidated statements of operations.The Convertible

151、 Notes consisted of the following:As of March 31,2024As of December 31,2023PrincipalUnamortized DebtIssuance CostsNet Carrying AmountPrincipalUnamortized DebtIssuance CostsNet Carrying Amount(in thousands)2025 Notes$184,105$(459)$183,646$284,105$(871)$283,234 2026 Notes487,286(1,788)485,498 838,482(

152、3,402)835,080 2027 Notes1,150,000(6,582)1,143,418 1,150,000(7,114)1,142,886 2028 Notes1,500,000(11,096)1,488,904 1,500,000(11,800)1,488,200 Total$3,321,391$(19,925)$3,301,466$3,772,587$(23,187)$3,749,400 As of March 31,2024,the debt issuance costs on the 2025 Notes,2026 Notes,2027 Notes,and 2028 Not

153、es will be amortized over the remainingperiod of approximately 1.1 years,2.3 years,3.1 years,and 3.9 years,respectively.Interest expense related to the amortization of debt issuance costs was$1.6 million and$1.7 million for the three months ended March 31,2024 and2023,respectively.Contractual intere

154、st expense was$1.8 million and$2.2 million for the three months ended March 31,2024 and 2023,respectively.As of March 31,2024,the if-converted value of the Convertible Notes did not exceed the principal amount.The sale price for conversion was notsatisfied as of March 31,2024 for the Convertible Not

155、es,and as a result,the Convertible Notes will not be eligible for optional conversion during the secondquarter of 2024.No sinking fund is provided for the Convertible Notes,which means that we are not required to redeem or retire them periodically.Refer to Note 7 in our consolidated financial statem

156、ents in the Annual Report for additional details.Capped Call TransactionsIn connection with the pricing of the 2025 Notes,the 2026 Notes,the 2027 Notes,and the 2028 Notes,we entered into the 2025 Capped CallTransactions,the 2026 Capped Call Transactions,the 2027 Capped Call Transactions,and the 2028

157、 Capped Call Transactions(collectively,the“Capped CallTransactions”),respectively,with certain counterparties at a net cost of$100.0 million,$102.1 million,$86.8 million,and$177.0 million,respectively.The capprice of the 2025 Capped Call Transactions,the 2026 Capped Call Transactions,the 2027 Capped

158、 Call Transactions,and the 2028 Capped Call Transactions isinitially$32.12,$32.58,$121.02,and$93.90 per share of our Class A common stock,respectively.All are subject to certain adjustments under the terms of theCapped Call Transactions.Conditions that cause adjustments to the initial strike price o

159、f the Capped Call Transactions mirror conditions that result incorresponding adjustments for the Convertible Notes.18Table of ContentsThe Capped Call Transactions are intended to reduce potential dilution to holders of our Class A common stock beyond the conversion prices up to thecap prices on any

160、conversion of the Convertible Notes or offset any cash payments we are required to make in excess of the principal amount,as the case maybe,with such reduction or offset subject to a cap.The cost of the Capped Call Transactions was recorded as a reduction of our additional paid-in capital in ourcons

161、olidated balance sheets.The Capped Call Transactions will not be remeasured as long as they continue to meet the conditions for equity classification.Asof March 31,2024,the Capped Call Transactions were out-of-the-money.Credit FacilityIn May 2022,we entered into a five-year senior unsecured revolvin

162、g credit facility(the“Credit Facility”)with certain lenders that allows us to borrowup to$1.05 billion to fund working capital and general corporate-purpose expenditures.Loans bear interest,at our option,at a rate equal to(i)a term securedovernight financing rate(“SOFR”)plus 0.75%or the base rate,if

163、 selected by us,for loans made in U.S.dollars,(ii)the Sterling overnight index average plus0.7826%for loans made in Sterling,or(iii)foreign indices as stated in the credit agreement plus 0.75%for loans made in other permitted foreign currencies.The base rate is defined as the greatest of(i)the Wall

164、Street Journal prime rate,(ii)the greater of the(a)federal funds rate and(b)the overnight bank fundingrate,plus 0.50%,and(iii)the applicable SOFR for a period of one month(but not less than zero)plus 1.00.The Credit Facility also contains an annualcommitment fee of 0.10%on the daily undrawn balance

165、of the facility.As of March 31,2024,we had$60.8 million in the form of outstanding standby lettersof credit,with no amounts outstanding under the Credit Facility.8.Commitments and ContingenciesCommitmentsWe have non-cancelable contractual agreements primarily related to the hosting of our data proce

166、ssing,storage,and other computing services,as wellas lease,content and developer partner,and other commitments.We had$2.6 billion in commitments as of March 31,2024,primarily due within three years.For additional discussion on leases,see Note 9 to our consolidated financial statements.ContingenciesW

167、e record a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.We alsodisclose material contingencies when we believe a loss is not probable but reasonably possible.Accounting for contingencies requires us to use judgmentrela

168、ted to both the likelihood of a loss and the estimate of the amount or range of loss.Many legal and tax contingencies can take years to be resolved.Pending MattersIn November 2021,we and certain of our officers and directors were named as defendants in a securities class action lawsuit purportedly b

169、rought onbehalf of purchasers of our Class A common stock,alleging that we and certain of our officers made false or misleading statements and omissions concerningthe impact that Apples App Tracking Transparency framework would have on our business.We believe we have meritorious defenses to this law

170、suit andcontinue to defend the lawsuit vigorously.Based on the preliminary nature of the proceedings in this case,the outcome of this matter remains uncertain.The outcomes of our legal proceedings are inherently unpredictable,subject to significant uncertainties,and could be material to our financia

171、lcondition,results of operations,and cash flows for a particular period.For the pending matter described above,it is not possible to estimate the reasonablypossible loss or range of loss.We are subject to various other legal proceedings and claims in the ordinary course of business,including certain

172、 patent,trademark,privacy,regulatory,and employment matters.Although occasional adverse decisions or settlements may occur,we do not believe that the final disposition of any of ourother pending matters will seriously harm our business,financial condition,results of operations,and cash flows.Indemni

173、ficationsIn the ordinary course of business,we may provide indemnifications of varying scope and terms to customers,vendors,lessors,investors,directors,officers,employees,and other parties with respect to certain matters.Indemnification may include losses from our breach of such agreements,services

174、weprovide,or third-party intellectual property19Table of Contentsinfringement claims.These indemnifications may survive termination of the underlying agreement and the maximum potential amount of futureindemnification payments may not be subject to a cap.We have not incurred material costs to defend

175、 lawsuits or settle claims related to these indemnificationsas of March 31,2024.We believe the fair value of these liabilities is immaterial and accordingly have no liabilities recorded for these agreements at March 31,2024.9.LeasesWe have non-cancelable lease agreements for certain of our offices w

176、ith original lease terms expiring between 2024 and 2042.Total operating leasecosts were$25.4 million and$25.0 million for the three months ended March 31,2024 and 2023,respectively.The weighted-average remaining lease term(in years)and discount rate related to our operating leases were as follows:As

177、 of March 31,20242023Weighted-average remaining lease term9.86.3Weighted-average discount rate6.1%4.8%The maturities of our operating lease liabilities as of March 31,2024 were as follows:Operating Leases(in thousands)Remainder of 2024$57,484 202579,769 202686,676 202778,026 202876,753 Thereafter431

178、,887 Total lease payments$810,595 Less:Imputed interest(220,205)Present value of lease liabilities$590,390 As of March 31,2024,we had additional operating leases that have not yet commenced for facilities with lease obligations of$63.0 million.Theseoperating leases will commence between 2024 and 202

179、6 with lease terms of approximately 6 years to 11 years.Cash payments included in the measurement of our operating lease liabilities were$28.2 million and$24.2 million for the three months endedMarch 31,2024 and 2023,respectively.Lease liabilities arising from obtaining operating lease right-of-use

180、assets were$10.8 million and$1.7 million for the three months ended March 31,2024 and 2023,respectively.10.Strategic InvestmentsWe hold strategic investments primarily in privately held companies,which consist of equity securities,and to a lesser extent,debt securities.Thesestrategic investments are

181、 primarily recorded at fair value on a non-recurring basis.The estimation of fair value for these privately held strategic investmentsrequires the use of significant unobservable inputs,such as the issuance of new equity by the company,and as a result,we deem these assets as Level 3financial instrum

182、ents within the fair value measurement framework.20Table of ContentsThe following table summarizes our strategic investments as of March 31,2024 and December 31,2023:As ofMarch 31,2024As ofDecember 31,2023(in thousands)Initial cost$106,218$106,368 Cumulative upward adjustments147,499 147,317 Cumulat

183、ive downward adjustments,including impairments(64,656)(58,357)Carrying value$189,061$195,328 Gains and losses recognized during the periods presented were as follows:Three Months Ended March 31,20242023(in thousands)Gains(losses)recognized on strategic investments sold during the period,net$Unrealiz

184、ed gains on strategic investments still held at the reporting date182 1,079 Unrealized losses,including impairments,on strategic investments still held at the reporting date(6,449)(975)Gains(losses)on strategic investments,net$(6,267)$104 Gains and losses on all strategic investments are included wi

185、thin other income(expense),net on our consolidated statements of operations andincluded as an adjustment to reconcile net loss to net cash provided by(used in)operating activities in our consolidated statements of cash flows.Strategicinvestments are included within other assets on our consolidated b

186、alance sheets.11.Fair Value MeasurementsAssets and liabilities measured at fair value are classified into the following categories:Level 1:Quoted market prices in active markets for identical assets or liabilities.Level 2:Observable market-based inputs or unobservable inputs that are corroborated by

187、 market data.Level 3:Unobservable inputs reflecting the reporting entitys own assumptions or external inputs from inactive markets.We classify our cash equivalents and marketable securities within Level 1 or Level 2 because we use quoted market prices or alternative pricingsources and models utilizi

188、ng observable market-based inputs to determine their fair value.The following tables set forth our financial assets that are measured at fair value on a recurring basis,excluding publicly traded equity securities,as ofMarch 31,2024 and December 31,2023:March 31,2024Cost orAmortized CostGrossUnrealiz

189、edGainsGrossUnrealizedLossesTotal EstimatedFair Value(in thousands)Cash$1,023,276$(7)$1,023,269 Level 1 securities:U.S.government securities1,438,436 71(6,179)1,432,328 U.S.government agency securities63,612 (124)63,488 Level 2 securities:Corporate debt securities196,494 93(164)196,423 Commercial pa

190、per184,625 184,625 Total$2,906,443$164$(6,474)$2,900,133 21Table of ContentsDecember 31,2023Cost orAmortized CostGrossUnrealizedGainsGrossUnrealizedLossesTotal EstimatedFair Value(in thousands)Cash$1,780,402$1,780,402 Level 1 securities:U.S.government securities1,295,918 894(3,919)1,292,893 U.S.gove

191、rnment agency securities138,420 31(188)138,263 Level 2 securities:Corporate debt securities234,336 577(99)234,814 Commercial paper65,380 65,380 Certificates of deposit18,725 18,725 Total$3,533,181$1,502$(4,206)$3,530,477 Gross unrealized losses on marketable debt securities were not material for the

192、 three months ended March 31,2024 and 2023.As of March 31,2024,we considered any decreases in fair value on our marketable debt securities to be driven by factors other than credit risk,including market risk.As of March 31,2024,$479.7 million of our total$1.8 billion in marketable debt securities ha

193、ve contractual maturities between one and five years.All other marketable debtsecurities have contractual maturities less than one year.We hold investments in publicly traded companies with an aggregate carrying value of$10.9 million and$13.6 million as of March 31,2024 andDecember 31,2023,respectiv

194、ely,recorded as marketable securities.We classify these publicly traded equity securities within Level 1 because we use quotedmarket prices to determine their fair value.Gains and losses recognized during the periods presented,which are included within other income(expense),net onour consolidated st

195、atements of operations,were as follows:Three Months Ended March 31,20242023(in thousands)Gains(losses)recognized on publicly traded equity securities sold during the period,net$137 Unrealized gains(losses)on publicly traded equity securities still held at the reporting date,net(2,721)10,594 Gains(lo

196、sses)on publicly traded equity securities,net$(2,721)$10,731 We carry the Convertible Notes at face value less the unamortized debt issuance costs on our consolidated balance sheets and present the fair value fordisclosure purposes only.As of March 31,2024,the fair value of the 2025 Notes,the 2026 N

197、otes,the 2027 Notes,and the 2028 Notes was$179.2 million,$467.6 million,$927.9 million,and$1,139.7 million,respectively.As of December 31,2023,the fair value of the 2025 Notes,the 2026 Notes,the 2027 Notes,and the 2028 Notes was$300.9 million,$893.2 million,$921.5 million,and$1,181.7 million,respect

198、ively.The estimated fair value of the Convertible Notes,which are classified as Level 2 financial instruments,was determined based on the estimated or actual bid prices of the Convertible Notes in an over-the-counter market on the last business day of the period.12.Income TaxesOur tax provision for

199、interim periods is determined using an estimate of our annual effective tax rate,adjusted for discrete items arising in that quarter.Our effective tax rate differs from the U.S.statutory tax rate primarily due to valuation allowances on our deferred tax assets as it is more likely than not thatsome

200、or all of our deferred tax assets will not be realized.Income tax expense was$6.9 million and$6.8 million for the three months ended March 31,2024and 2023,respectively.22Table of Contents13.Accumulated Other Comprehensive Income(Loss)The table below presents the changes in accumulated other comprehe

201、nsive income(loss)(“AOCI”)by component and the reclassifications out ofAOCI:Changes in Accumulated Other Comprehensive Income(Loss)byComponentMarketableSecuritiesForeign CurrencyTranslationTotal(in thousands)Balance at December 31,2023$(2,860)$9,991$7,131 Other comprehensive income(loss)before recla

202、ssifications(3,592)(2,777)(6,369)Amounts reclassified from AOCI(12)(12)Net current period other comprehensive income(loss)(3,604)(2,777)(6,381)Balance at March 31,2024$(6,464)$7,214$750(1)Realized gains and losses on marketable securities are reclassified from AOCI into other income(expense),net in

203、our consolidated statements ofoperations.14.Long-lived AssetsThe following table lists long-lived assets by geographic area,which includes property and equipment,net and operating lease right-of-use assets:As ofMarch 31,2024As ofDecember 31,2023(in thousands)United States$633,569$646,546 United King

204、dom235,535 218,326 Rest of world 68,376 62,316 Total long-lived assets,net$937,480$927,188(1)No individual country other than the United States and the United Kingdom exceeded 10%of our total long-lived assets for any period presented.15.Restructuring2024 RestructuringIn the first quarter of 2024,we

205、 announced a plan to reduce hierarchy and concentrate our team members in major hub locations to support in-personcollaboration,resulting in the reduction of our global headcount by approximately 10%.The following table summarizes the 2024 restructuring charges included in our consolidated statement

206、 of operations for the three months endedMarch 31,2024:(1)(1)23Table of ContentsSeverance and RelatedCharges Stock-BasedCompensation Expense(Benefit)Other Total(in thousands)Cost of revenue$837$207$1,044 Research and development31,269 4,517 3,201 38,987 Sales and marketing15,256 4,218 19,474 General

207、 and administrative6,265 95 2,351 8,711 Total$53,627$9,037$5,552$68,216(1)Severance and related charges include cash severance expenses and other termination benefits.The majority of cash paid for restructuring in the firstquarter of 2024 was related to severance and benefits.(2)Other primarily incl

208、udes intangible asset amortization and depreciation expense.The remaining charges related to the 2024 restructuring are expected to be immaterial.The liabilities related to the 2024 restructuring were immaterialas of March 31,2024.(1)(2)24Table of ContentsItem 2.Managements Discussion and Analysis o

209、f Financial Condition and Results of OperationsThe following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidatedfinancial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and with our au

210、dited consolidated financial statementsincluded in our Annual Report.In addition to historical consolidated financial information,the following discussion contains forward-looking statements thatreflect our plans,estimates,and beliefs that involve significant risks and uncertainties.Our actual resul

211、ts could differ materially from those discussed in theforward-looking statements.Factors that could cause or contribute to those differences include those discussed below and elsewhere in this Quarterly Reporton Form 10-Q,particularly in“Risk Factors,”“Note Regarding Forward-Looking Statements,”and“

212、Note Regarding User Metrics and Other Data.”Overview of First Quarter 2024 ResultsOur key user metrics and financial results for the first quarter of 2024 were as follows:User MetricsDaily Active Users,or DAUs,increased 10%year-over-year to 422 million in Q1 2024.Average revenue per user,or ARPU,was

213、$2.83 in Q1 2024,compared to$2.58 in Q1 2023.Financial ResultsRevenue was$1,194.8 million in Q1 2024,compared to$988.6 million in Q1 2023,an increase of 21%year-over-year.Total costs and expenses were$1,528.0 million in Q1 2024,compared to$1,353.9 million in Q1 2023.Net loss was$305.1 million in Q1

214、2024,compared to$328.7 million in Q1 2023.Diluted net loss per share was$(0.19)in Q1 2024,compared to$(0.21)in Q1 2023.Adjusted EBITDA was$45.7 million in Q1 2024,compared to$0.8 million in Q1 2023.Cash provided by operating activities was$88.4 million in Q1 2024,compared to$151.1 million in Q1 2023

215、.Free Cash Flow was$37.9 million in Q1 2024,compared to$103.5 million in Q1 2023.Cash,cash equivalents,and marketable securities were$2.9 billion as of March 31,2024.Business and Macroeconomic ConditionsWe periodically make changes to our business and priorities.Recently,we conducted a strategic rep

216、rioritization to realign our focus on three strategicpriorities:growing our community and deepening their engagement with our products,accelerating and diversifying our revenue growth,and investing in thefuture of augmented reality.We believe that we can be successful in our current operating enviro

217、nment,with various macroeconomic factors impacting ourbusiness,by rigorously prioritizing our investments and continuing to engage our community with our products while driving success for our advertisingpartners.However,the impact of our strategic reprioritization and recent restructurings is diffi

218、cult to predict.Macroeconomic factors such as labor shortages and disruptions,supply chain disruptions,inflation,changes in interest and foreign currency exchangerates,banking instability,and other risks and uncertainties continue to cause logistical challenges,increased input costs,and inventory co

219、nstraints for ouradvertisers,which in turn may cause our advertisers to halt or decrease advertising spending on our platform.Such macroeconomic factors may also negativelyimpact,in the short-term or long-term,the global economy,advertising ecosystem,our customers and their budgets with us,user enga

220、gement,other usermetrics,and our business,financial condition,and results of operations.In addition,competition for advertising dollars has increased and demand growth on our advertising platform has slowed.We expect to continue toexperience increased competition,which may result in reduced advertis

221、ing demand,and could adversely affect our revenue growth,pricing,business,financialcondition,and results of operations.Demand has also been disrupted by recent changes we made to our advertising platform,and,in the future,we maycontinue to experience adverse impacts to our revenue growth as a result

222、 of these changes.25Table of ContentsOur revenue,particularly in North America,has further been impacted by platform policy changes and restrictions that affected our targeting,measurement,and optimization capabilities,and in turn our ability to measure the effectiveness of advertisements on our ser

223、vices.This has resulted in,and inthe future is likely to continue to result in,reduced advertising revenue,especially if we are unable to mitigate these developments.We compete with other companies in every aspect of our business.We must compete effectively for users and advertisers to grow our busi

224、ness andincrease our revenue.These and other risks and uncertainties are further described in the section titled“Risk Factors”in Part II,Item 1A of this QuarterlyReport on Form 10-Q.Trends in User MetricsWe define a DAU as a registered and logged-in Snapchat user who visits Snapchat through our appl

225、ications or websites at least once during a defined24-hour period.We define ARPU as quarterly revenue divided by the average DAUs.We assess the health of our business by measuring DAUs and ARPUbecause we believe that these metrics are important ways for both management and investors to understand en

226、gagement and monitor the performance of ourplatform.We also measure ARPU because we believe that this metric helps our management and investors to assess the extent to which we are monetizing ourservice.User EngagementWe calculate average DAUs for a particular quarter by adding the number of DAUs on

227、 each day of that quarter and dividing that sum by the numberof days in that quarter.DAUs are broken out by geography because markets have different characteristics.We had 422 million DAUs on average in the firstquarter of 2024,an increase of 39 million,or 10%,from the first quarter of 2023.Quarterl

228、y Average Daily Active Users(in millions)GlobalYoYgrowth:18%18%19%17%15%14%12%10%10%(1)Numbers may not foot due to rounding.(1)26Table of ContentsNorth America Europe YoYgrowth:5%4%4%3%3%2%1%(1)%10%10%11%12%10%9%7%4%4%(2)North America includes Mexico,the Caribbean,and Central America.(3)Europe inclu

229、des Russia and Turkey.Rest of WorldYoYgrowth:36%35%34%31%27%25%21%19%19%MonetizationWe recorded revenue of$1,194.8 million for the three months ended March 31,2024,compared to revenue of$988.6 million for the same period in2023,an increase of 21%year-over-year.We monetize our business primarily thro

230、ugh advertising.Our advertising products include Snap Ads and AR Ads.We measure our business using ARPU because it helps us understand the rate at which we are monetizing our daily user base.ARPU was$2.83 in thefirst quarter of 2024,compared to$2.58 in the first quarter of 2023.For purposes of calcu

231、lating ARPU,revenue by user geography is apportioned to eachregion based on a determination of the geographic location in which advertising impressions are delivered,as this approximates revenue based on user activity.This differs from the presentation of our revenue by geography in the notes to our

232、 consolidated financial statements,where revenue is based on the billingaddress of the advertising customer.(2)(3)27Table of ContentsQuarterly Average Revenue per UserGlobalNorth America Europe(1)North America includes Mexico,the Caribbean,and Central America.(2)Europe includes Russia and Turkey.Eff

233、ective March 2022,we halted advertising sales to Russian and Belarusian entities.(1)(2)28Table of ContentsRest of WorldResults of OperationsThe following table summarizes certain selected historical financial results:Three Months Ended March 31,20242023(in thousands)Revenue$1,194,773$988,608 Operati

234、ng loss$(333,232)$(365,264)Net loss$(305,090)$(328,674)Adjusted EBITDA$45,659$813(1)For information on how we define and calculate Adjusted EBITDA,and a reconciliation of net loss to Adjusted EBITDA,see“Non-GAAP FinancialMeasures.”Components of Results of OperationsRevenueWe generate substantially a

235、ll of our revenue through the sale of our advertising products,which primarily include Snap Ads and AR Ads,referred to asadvertising revenue.Snap Ads may be subject to revenue sharing arrangements between us and the content partner.We also generate revenue fromsubscriptions and sales of hardware pro

236、ducts.Sales of hardware products are reported net of allowances for returns.Cost of RevenueCost of revenue consists of payments to third-party infrastructure partners for hosting our products,which include expenses related to storage,computing,and bandwidth costs,and payments for content,developer,a

237、nd advertiser partner costs.In addition,cost of revenue includes third-party sellingcosts and personnel-related costs,including salaries,benefits,and stock-based compensation expenses.Cost of revenue also includes facilities and othersupporting overhead costs,including depreciation and amortization,

238、and inventory costs.Research and Development ExpensesResearch and development expenses consist primarily of personnel-related costs,including salaries,benefits,and stock-based compensation expensefor our engineers,designers,and other employees engaged in the research and development of our products.

239、In addition,research and development expensesinclude facilities and other supporting overhead costs,including depreciation and amortization.Research and development costs are expensed as incurred.(1)29Table of ContentsSales and Marketing ExpensesSales and marketing expenses consist primarily of pers

240、onnel-related costs,including salaries,benefits,commissions,and stock-based compensationexpense for our employees engaged in sales and sales support,business development,media,marketing,corporate partnerships,and customer servicefunctions.Sales and marketing expenses also include costs incurred for

241、advertising,market research,tradeshows,branding,marketing,promotional expense,and public relations,as well as facilities and other supporting overhead costs,including depreciation and amortization.General and Administrative ExpensesGeneral and administrative expenses consist primarily of personnel-r

242、elated costs,including salaries,benefits,and stock-based compensation expensefor our finance,legal,information technology,human resources,and other administrative teams.General and administrative expenses also include facilities andsupporting overhead costs,including depreciation and amortization,an

243、d external professional services.Interest IncomeInterest income consists primarily of interest earned on our cash,cash equivalents,and marketable securities.Interest ExpenseInterest expense consists primarily of interest expense associated with convertible notes and commitment fees related to our re

244、volving credit facility.Other Income(Expense),NetOther income(expense),net primarily consists of gains and losses on strategic investments,marketable securities,and foreign currency transactions.Income Tax Benefit(Expense)We are subject to income taxes in the United States and numerous foreign juris

245、dictions.These foreign jurisdictions have different statutory tax ratesthan the United States.Additionally,certain of our foreign earnings may also be taxable in the United States.Accordingly,our effective tax rates will varydepending on the relative proportion of foreign to domestic income,use of t

246、ax credits,changes in the valuation of our deferred tax assets and liabilities,andchanges in tax laws.Adjusted EBITDAWe define Adjusted EBITDA as net income(loss),excluding interest income;interest expense;other income(expense),net;income tax benefit(expense);depreciation and amortization;stock-base

247、d compensation expense;payroll and other tax expense related to stock-based compensation;and certainother items impacting net income(loss)from time to time.We consider the exclusion of these items in calculating Adjusted EBITDA to provide a usefulmeasure for period-to-period comparisons of our busin

248、ess and for investors and others to evaluate our operating results in the same manner as does ourmanagement.See“Non-GAAP Financial Measures”for additional information and a reconciliation of net loss to Adjusted EBITDA.30Table of ContentsDiscussion of Results of OperationsThe following table sets fo

249、rth our consolidated statements of operations data:Three Months Ended March 31,20242023(in thousands)Consolidated Statements of Operations Data:Revenue$1,194,773$988,608 Costs and expenses:Cost of revenue574,749 439,986 Research and development449,759 455,112 Sales and marketing276,034 268,433 Gener

250、al and administrative227,463 190,341 Total costs and expenses1,528,005 1,353,872 Operating loss(333,232)(365,264)Interest income39,898 37,948 Interest expense(4,743)(5,885)Other income(expense),net(81)11,372 Loss before income taxes(298,158)(321,829)Income tax benefit(expense)(6,932)(6,845)Net loss$

251、(305,090)$(328,674)Adjusted EBITDA$45,659$813(1)Stock-based compensation expense included in the above line items:Three Months Ended March 31,20242023(in thousands)Stock-based compensation expense:Cost of revenue$1,815$1,885 Research and development174,519 219,850 Sales and marketing54,656 54,939 Ge

252、neral and administrative32,762 38,257 Total$263,752$314,931(2)Depreciation and amortization expense included in the above line items:Three Months Ended March 31,20242023(in thousands)Depreciation and amortization expense:Cost of revenue$2,150$3,226 Research and development27,598 24,139 Sales and mar

253、keting4,577 5,073 General and administrative7,388 2,782 Total$41,713$35,220(3)See“Non-GAAP Financial Measures”for more information and for a reconciliation of Adjusted EBITDA to net loss,the most directly comparablefinancial measure calculated and presented in accordance with GAAP.(1)(2)(3)31Table o

254、f ContentsThe following table sets forth the components of our consolidated statements of operations data for each of the periods presented as a percentage ofrevenue:Three Months Ended March 31,20242023Consolidated Statements of Operations Data:Revenue100%100%Costs and expenses:Cost of revenue48 45

255、Research and development38 46 Sales and marketing23 27 General and administrative19 19 Total costs and expenses128 137 Operating loss(28)(37)Interest income3 4 Interest expense Other income(expense),net 1 Loss before income taxes(25)(32)Income tax benefit(expense)(1)(1)Net loss(26)%(33)%Three Months

256、 Ended March 31,2024 and 2023RevenueThree Months Ended March 31,20242023(dollars in thousands)Revenue$1,194,773$988,608 Revenue as a dollar change$206,165 Revenue as a percentage change21%Revenue for the three months ended March 31,2024 increased$206.2 million compared to the same period in 2023.The

257、 increase was primarily due toa combination of growth in advertisers,optimization efficiencies,and improvement in auction-based advertising demand.The increase was also driven byhigher subscription revenue due to growth in the number of subscribers.Cost of RevenueThree Months Ended March 31,20242023

258、(dollars in thousands)Cost of Revenue$574,749$439,986 Cost of Revenue as a dollar change$134,763 Cost of Revenue as a percentage change31%Cost of revenue for the three months ended March 31,2024 increased$134.8 million compared to the same period in 2023.The increase wasprimarily driven by increased

259、 infrastructure costs attributable to DAU growth and investments in machine learning and AI.32Table of ContentsResearch and Development ExpensesThree Months Ended March 31,20242023(dollars in thousands)Research and Development Expenses$449,759$455,112 Research and Development Expenses as a dollar ch

260、ange$(5,353)Research and Development Expenses as a percentage change(1)%Research and development expenses for the three months ended March 31,2024 decreased$5.4 million compared to the same period in 2023.Thedecrease was primarily driven by lower stock-based compensation expenses due to lower headco

261、unt compared to the prior period,partially offset by$39.0million relating to restructuring charges in the current period.Sales and Marketing ExpensesThree Months Ended March 31,20242023(dollars in thousands)Sales and Marketing Expenses$276,034$268,433 Sales and Marketing Expenses as a dollar change$

262、7,601 Sales and Marketing Expenses as a percentage change3%Sales and marketing expenses for the three months ended March 31,2024 increased$7.6 million compared to the same period in 2023.The increasewas primarily driven by$19.5 million relating to restructuring charges in the current period,partiall

263、y offset by lower stock-based compensation expenses dueto lower headcount compared to the prior period.General and Administrative ExpensesThree Months Ended March 31,20242023(dollars in thousands)General and Administrative Expenses$227,463$190,341 General and Administrative Expenses as a dollar chan

264、ge$37,122 General and Administrative Expenses as a percentage change20%General and administrative expenses for the three months ended March 31,2024 increased$37.1 million compared to the same period in 2023.Theincrease was primarily driven by$8.7 million relating to restructuring charges in the curr

265、ent period,higher spend on external professional services,andincreased facilities costs associated with return to office initiatives,partially offset by lower stock-based compensation expenses.33Table of ContentsInterest IncomeThree Months Ended March 31,20242023(dollars in thousands)Interest Income

266、$39,898$37,948 Interest Income as a dollar change$1,950 Interest Income as a percentage change5%Interest income for the three months ended March 31,2024 increased$2.0 million compared to the same period in 2023.The increase was primarily aresult of higher interest rates on U.S.government-backed secu

267、rities,offset by a lower overall invested cash balance.Interest ExpenseThree Months Ended March 31,20242023(dollars in thousands)Interest Expense$(4,743)$(5,885)Interest Expense as a dollar change$1,142 Interest Expense as a percentage change(19)%Interest expense for the three months ended March 31,

268、2024 decreased$1.1 million compared to the same period in 2023.Interest expense for allperiods consists primarily of amortization of debt issuance costs and contractual interest expense.Other Income(Expense),NetThree Months Ended March 31,20242023(dollars in thousands)Other Income(Expense),Net$(81)$

269、11,372 Other Income(Expense),Net as a dollar change$(11,453)Other Income(Expense),Net as a percentage change(101)%Other expense,net for the three months ended March 31,2024 was$0.1 million,compared to other income,net of$11.4 million in the same period in2023.Other expense,net for the three months e

270、nded March 31,2024 was primarily a result of$6.3 million in net losses on strategic investments and$2.7 million in unrealized losses on publicly traded securities classified as marketable securities,partially offset by a$8.8 million gain on extinguishmentassociated with the Note Repurchases.Other in

271、come,net for the three months ended March 31,2023 was primarily a result of$10.7 million in total gains onpublicly traded securities classified as marketable securities and$1.1 million in unrealized gains on strategic investments.34Table of ContentsIncome Tax Benefit(Expense)Three Months Ended March

272、 31,20242023(dollars in thousands)Income Tax Benefit(Expense)$(6,932)$(6,845)Income Tax Benefit(Expense)as a dollar change$(87)Income Tax Benefit(Expense)as a percentage change(1)%Effective Tax Rate(2.3)%(2.1)%Income tax expense for the three months ended March 31,2024 was$6.9 million,compared to an

273、 income tax expense of$6.8 million for the sameperiod in 2023.Our effective tax rate differs from the U.S.statutory tax rate primarily due to valuation allowances on our deferred tax assets as it is more likelythan not that some or all of our deferred tax assets will not be realized.Net Loss and Adj

274、usted EBITDAThree Months Ended March 31,20242023(dollars in thousands)(NM=Not Meaningful)Net Loss$(305,090)$(328,674)Net Loss as a dollar change$23,584 Net Loss as a percentage change7%Adjusted EBITDA$45,659$813 Adjusted EBITDA as a dollar change$44,846 Adjusted EBITDA as a percentage changeNMNet lo

275、ss for the three months ended March 31,2024 was$305.1 million,compared to$328.7 million for the same period in 2023.The decrease in netloss was primarily the result of the changes in revenues and expenses discussed above.Adjusted EBITDA for the three months ended March 31,2024 was$45.7 million,compa

276、red to$0.8 million for the same period in 2023.The increasewas primarily attributable to increased revenue,partially offset by higher cost of revenue,sales and marketing,and general and administrative expenses.For a discussion of the limitations associated with using Adjusted EBITDA rather than GAAP

277、 measures and a reconciliation of this measure to netloss,see“Non-GAAP Financial Measures.”Liquidity and Capital ResourcesCash,cash equivalents,and marketable securities were$2.9 billion as of March 31,2024,primarily consisting of cash on deposit with banks andhighly liquid investments in U.S.govern

278、ment and agency securities,publicly traded equity securities,corporate debt securities,certificates of deposit,andcommercial paper.Our primary source of liquidity is cash generated through financing activities.Our primary uses of cash include operating costs such aspersonnel-related costs and the in

279、frastructure costs of the Snapchat application,facility-related capital spending,and acquisitions and investments.There are noknown material subsequent events that could have a material impact on our cash or liquidity.We may contemplate and engage in merger and acquisitionactivity that could materia

280、lly impact our liquidity and capital resource position.In October 2023,our board of directors authorized a stock repurchase program of up to$500.0 million of our Class A common stock.During thefirst quarter of 2024,we repurchased and retired 21.0 million shares of our Class A common stock for an agg

281、regate of$235.1 million,including costsassociated with the repurchases.As of March 31,2024,35Table of Contentsthe remaining availability under the stock repurchase authorization was$75.9 million.This program was completed in April 2024.In February 2024,we entered into various privately negotiated re

282、purchase transactions(collectively,the“Note Repurchases”)with certain holders ofthe 2025 Notes and 2026 Notes,pursuant to which we agreed to repurchase$100.0 million in aggregate principal of the 2025 Notes and$351.2 million inaggregate principal of the 2026 Notes for a cash repurchase price of$440.

283、7 million,including costs associated with the Note Repurchases.In May 2022,we entered into a five-year senior unsecured revolving credit facility,or Credit Facility,with certain lenders that allows us to borrow upto$1.05 billion to fund working capital and general corporate-purpose expenditures.Loan

284、s bear interest,at our option,at a rate equal to(i)a term securedovernight financing rate,or SOFR,plus 0.75%or the base rate,if selected by us,for loans made in U.S.dollars,(ii)the Sterling overnight index average plus0.7826%for loans made in Sterling,or(iii)foreign indices as stated in the credit a

285、greement plus 0.75%for loans made in other permitted foreign currencies.The base rate is defined as the greatest of(i)the Wall Street Journal prime rate,(ii)the greater of the(a)federal funds rate and(b)the overnight bank fundingrate,plus 0.50%,and(iii)the applicable SOFR for a period of one month(b

286、ut not less than zero)plus 1.00.The Credit Facility also contains an annualcommitment fee of 0.10%on the daily undrawn balance of the facility.As of March 31,2024,we had$60.8 million in the form of outstanding standby lettersof credit,with no amounts outstanding under the Credit Facility.In February

287、 2022,we entered into a purchase agreement for the sale of an aggregate of$1.50 billion principal amount of convertible senior notes duein 2028.The net proceeds from the issuance of the 2028 Notes were$1.31 billion,net of debt issuance costs and the 2028 Capped Call Transactions discussedfurther in

288、Note 7 in our consolidated financial statements.The 2028 Notes mature on March 1,2028 unless repurchased,redeemed,or converted in accordancewith their terms prior to such date.The sale price requirement for conversion was not satisfied as of March 31,2024 and as a result,the 2028 Notes will not beel

289、igible for optional conversion during the second quarter of 2024.As of March 31,2024,the outstanding principal of the 2028 Notes was$1.50 billion.In April 2021,we entered into a purchase agreement for the sale of an aggregate of$1.15 billion principal amount of convertible senior notes due in2027.Th

290、e net proceeds from the issuance of the 2027 Notes were$1.05 billion,net of debt issuance costs and the 2027 Capped Call Transactions discussedfurther in Note 7 in our consolidated financial statements.The 2027 Notes mature on May 1,2027 unless repurchased,redeemed,or converted in accordancewith the

291、ir terms prior to such date.The sale price requirement for conversion was not satisfied as of March 31,2024 and as a result,the 2027 Notes will not beeligible for optional conversion during the second quarter of 2024.As of March 31,2024,the outstanding principal of the 2027 Notes was$1.15 billion.In

292、 April 2020,we entered into a purchase agreement for the sale of an aggregate of$1.0 billion principal amount of convertible senior notes due in2025.The net proceeds from the issuance of the 2025 Notes were$888.6 million,net of debt issuance costs and the 2025 Capped Call Transactions discussedfurth

293、er in Note 7 in our consolidated financial statements.The 2025 Notes mature on May 1,2025 unless repurchased,redeemed,or converted in accordancewith their terms prior to such date.The sale price requirement for conversion was not satisfied as of March 31,2024 and as a result,the 2025 Notes will not

294、beeligible for optional conversion during the second quarter of 2024.As of March 31,2024,the outstanding principal of the 2025 Notes was$184.1 million.In August 2019,we entered into a purchase agreement for the sale of an aggregate of$1.265 billion principal amount of convertible senior notes duein

295、2026.The net proceeds from the issuance of the 2026 Notes were$1.15 billion,net of debt issuance costs and the 2026 Capped Call Transactions discussedfurther in Note 7 in our consolidated financial statements.The 2026 Notes mature on August 1,2026 unless repurchased,redeemed,or converted in accordan

296、cewith their terms prior to such date.The sale price requirement for conversion was not satisfied as of March 31,2024 and as a result,the 2026 Notes will not beeligible for optional conversion during the second quarter of 2024.As of March 31,2024,the outstanding principal of the 2026 Notes was$487.3

297、 million.We believe our existing cash balance is sufficient to fund our ongoing working capital,investing,and financing requirements for at least the next 12months.Our future capital requirements will depend on many factors including our growth rate,headcount,sales and marketing activities,research

298、anddevelopment efforts,the introduction of new features,products,and acquisitions,and continued user engagement.We continually evaluate opportunities toissue or repurchase equity or debt securities,obtain,retire,or restructure credit facilities or financing arrangements,or declare dividends for stra

299、tegic reasons orto further strengthen our financial position.36Table of ContentsAs of March 31,2024,approximately 4.0%of our cash,cash equivalents,and marketable securities was held outside the United States.These amountswere primarily held in the United Kingdom and are utilized to fund our foreign

300、operations.Cash held outside the United States may be repatriated,subject tocertain limitations,and would be available to be used to fund our domestic operations.However,repatriation of funds may result in additional tax liabilities.We believe our existing cash balance in the United States is suffic

301、ient to fund our working capital needs.The following table sets forth the major components of our consolidated statements of cash flows for the periods presented:Three Months Ended March 31,20242023(in thousands)Net cash provided by(used in)operating activities$88,352$151,102 Net cash provided by(us

302、ed in)investing activities(131,183)5,838 Net cash provided by(used in)financing activities(675,751)(1,999)Change in cash,cash equivalents,and restricted cash$(718,582)$154,941 Free Cash Flow$37,904$103,472(1)For information on how we define and calculate Free Cash Flow and a reconciliation to net ca

303、sh provided by(used in)operating activities to FreeCash Flow,see“Non-GAAP Financial Measures.”Three Months Ended March 31,2024 and 2023Net Cash Provided by(Used in)Operating ActivitiesNet cash provided by operating activities was$88.4 million for the three months ended March 31,2024,compared to net

304、cash provided by operatingactivities of$151.1 million for the same period in 2023,resulting primarily from our net loss,adjusted for non-cash items,including stock-based compensationexpense of$263.8 million and depreciation and amortization expense of$41.7 million.Net cash provided by operating acti

305、vities for the three months endedMarch 31,2024 was also driven by a$162.2 million decrease in accounts receivable due to higher collections and a reduction in billings in the period,partiallyoffset by a$34.1 million decrease in accounts payable and a$18.4 million decrease in accrued expenses and oth

306、er current liabilities,primarily due to thetiming of payments.Net Cash Provided by(Used in)Investing ActivitiesNet cash used in investing activities was$131.2 million for the three months ended March 31,2024,compared to net cash provided by investingactivities of$5.8 million for the same period in 2

307、023.Our investing activities for the three months ended March 31,2024 primarily consisted of purchases ofmarketable securities of$465.7 million and purchases of property and equipment of$50.4 million,partially offset by maturities of marketable securities of$384.9 million.Net cash provided by invest

308、ing activities for the three months ended March 31,2023 primarily consisted of maturities of marketable securitiesof$924.3 million,partially offset by purchases of marketable securities of$874.1 million.Net Cash Provided by(Used in)Financing ActivitiesNet cash used in financing activities was$675.8

309、million for the three months ended March 31,2024,compared to net cash used in financing activitiesof$2.0 million for the same period in 2023.Our financing activities for the three months ended March 31,2024 primarily consisted of repurchases of ourConvertible Notes for$440.7 million and repurchases

310、of our Class A common stock for an aggregate of$235.1 million.Our financing activities for the threemonths ended March 31,2023 were not material.Free Cash FlowFree Cash Flow was$37.9 million for the three months ended March 31,2024,compared to$103.5 million for the same period in 2023.Free CashFlow

311、in all periods was composed of net cash provided by(used in)operating activities,resulting primarily from net loss,adjusted for non-cash items andchanges in working capital.Free Cash Flow also included purchases of property and equipment of$50.4 million and$47.6 million for the three months endedMar

312、ch 31,2024 and 2023,respectively.See“Non-GAAP Financial Measures.”(1)37Table of ContentsNon-GAAP Financial MeasuresTo supplement our consolidated financial statements,which are prepared and presented in accordance with GAAP,we use certain non-GAAP financialmeasures,as described below,to understand a

313、nd evaluate our core operating performance.These non-GAAP financial measures,which may be different thansimilarly titled measures used by other companies,are presented to enhance investors overall understanding of our financial performance and should not beconsidered a substitute for,or superior to,

314、the financial information prepared and presented in accordance with GAAP.We use the non-GAAP financial measure of Free Cash Flow,which is defined as net cash provided by(used in)operating activities,reduced bypurchases of property and equipment.We believe Free Cash Flow is an important liquidity mea

315、sure of the cash that is available,after capital expenditures,foroperational expenses and investment in our business and is a key financial indicator used by management.Additionally,we believe that Free Cash Flow is animportant measure since we use third-party infrastructure partners to host our ser

316、vices and therefore we do not incur significant capital expenditures to supportrevenue generating activities.Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash.Once ourbusiness needs and obligations are met,cash can be used to maintai

317、n a strong balance sheet and invest in future growth.We use the non-GAAP financial measure of Adjusted EBITDA,which is defined as net income(loss),excluding interest income;interest expense;other income(expense),net;income tax benefit(expense);depreciation and amortization;stock-based compensation e

318、xpense;payroll and other tax expenserelated to stock-based compensation;and certain other items impacting net income(loss)from time to time.We believe that Adjusted EBITDA helps identifyunderlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude in

319、Adjusted EBITDA.We believe that both Free Cash Flow and Adjusted EBITDA provide useful information about our financial performance,enhance the overallunderstanding of our past performance and future prospects,and allow for greater transparency with respect to key metrics used by our management forfi

320、nancial and operational decision-making.We are presenting the non-GAAP measures of Free Cash Flow and Adjusted EBITDA to assist investors in seeingour financial performance through the eyes of management,and because we believe that these measures provide an additional tool for investors to use incom

321、paring our core financial performance over multiple periods with other companies in our industry.These non-GAAP financial measures should not be considered in isolation from,or as substitutes for,financial information prepared in accordancewith GAAP.There are a number of limitations related to the u

322、se of these non-GAAP financial measures compared to the closest comparable GAAP measure.Some of these limitations are that:Free Cash Flow does not reflect our future contractual commitments;Adjusted EBITDA excludes certain recurring,non-cash charges such as depreciation of fixed assets and amortizat

323、ion of acquired intangible assets and,although these are non-cash charges,the assets being depreciated and amortized may have to be replaced in the future;Adjusted EBITDA excludes stock-based compensation expense and payroll and other tax expense related to stock-based compensation,which havebeen,an

324、d will continue to be for the foreseeable future,significant recurring expenses in our business and an important part of our compensationstrategy;andAdjusted EBITDA excludes income tax benefit(expense).The following table presents a reconciliation of Free Cash Flow to net cash provided by(used in)op

325、erating activities,the most comparable GAAPfinancial measure,for each of the periods presented:Three Months Ended March 31,20242023(in thousands)Free Cash Flow reconciliation:Net cash provided by(used in)operating activities$88,352$151,102 Less:Purchases of property and equipment(50,448)(47,630)Free

326、 Cash Flow$37,904$103,472 38Table of ContentsThe following table presents a reconciliation of Adjusted EBITDA to net loss,the most comparable GAAP financial measure,for each of the periodspresented:Three Months Ended March 31,20242023(in thousands)Adjusted EBITDA reconciliation:Net loss$(305,090)$(3

327、28,674)Add(deduct):Interest income(39,898)(37,948)Interest expense4,743 5,885 Other(income)expense,net81(11,372)Income tax(benefit)expense6,932 6,845 Depreciation and amortization38,098 35,220 Stock-based compensation expense254,715 314,931 Payroll and other tax expense related to stock-based compen

328、sation15,970 15,926 Restructuring charges 70,108 Adjusted EBITDA$45,659$813(1)Restructuring charges primarily include$68.2 million of cash severance,stock-based compensation expense,and other charges associated with the2024 restructuring.These charges are not reflective of underlying trends in our b

329、usiness.Refer to Note 15 in our consolidated financial statements.ContingenciesWe are involved in claims,lawsuits,tax matters,government investigations,and proceedings arising in the ordinary course of our business.We recorda provision for a liability when we believe that it is both probable that a

330、liability has been incurred and the amount can be reasonably estimated.We alsodisclose material contingencies when we believe that a loss is not probable but reasonably possible.Significant judgment is required to determine bothprobability and the estimated amount.Such claims,suits,and proceedings a

331、re inherently unpredictable and subject to significant uncertainties,some of whichare beyond our control.Many of these legal and tax contingencies can take years to resolve.Should any of these estimates and assumptions change or prove tobe incorrect,it could have a material impact on our results of

332、operations,financial position,and cash flows.CommitmentsWe have non-cancelable contractual agreements primarily related to the hosting of our data processing,storage,and other computing services,as wellas lease,content and developer partner,and other commitments.We had$2.6 billion in commitments,as

333、of March 31,2024,primarily due within three years.For additional discussion on our leases,see Note 9 to our consolidated financial statements.Critical Accounting Policies and EstimatesWe prepare our financial statements in accordance with GAAP.Preparing these financial statements requires us to make estimates and assumptionsthat affect the reported amounts of assets,liabilities,revenue,expenses,an