Snap 1Q17 Earnings Call Notes

Evan Spiegel

We need to be a creative company and when we create great stuff other people are going to copy it

“Look, I think if there’s one thing that I’d want to communicate today, it’s probably just the overall importance of creativity to our business. And I mean this from every perspective, from the team that we hire to how they work together; the creative culture that we have; the products that we have that inspire people to create. And I think our overall strategy, obviously which is to deliver value through creativity. And I think the bottom line is, like, if you want to be a creative company you’ve got to get comfortable with and basically enjoy the fact that people are going to copy your products if you make great stuff.”

Everyone is going to develop a camera strategy

And I think we’ve seen this happen a lot in technology. When Google came along, everyone really felt like they needed a search strategy. When Facebook came along, everyone felt they needed a social strategy. And now I think with Snap, with our company, we believe that everyone is going to develop a camera strategy. Because I think we really help people understand how valuable the camera is, because it’s really the center of everything that we do. And I think, at the end of the day, just because Yahoo, for example, has a search box, it doesn’t mean they are Google.”

Snap’s (SNAP) Q1 2017

Evan Spiegel – Co-Founder and CEO

On competition from Facebook

“if you want to be a creative company you’ve got to get comfortable with and basically enjoy the fact that people are going to copy your products if you make great stuff….And I think, at the end of the day, just because Yahoo, for example, has a search box, it doesn’t mean they are Google.”

 

Imran Khan – Chief Strategy Officer

18-34-year-olds are their prime audience

“…Nielsen found that 45% of 18- to 34-year-olds in the U.S. are reached by Snapchat on any given day. This is nine times more than the average daily reach of the top 15 TV networks and nearly 5 times more than the top TV network. 87% of our U.S. daily active users between the ages of 18 and 34 cannot be reached by any top 15 TV network.”

They are growing internationally

“in Q1, 14% of our revenue came from international market. That is up from 7% a year ago. I think we’re still early on with many market, like for example in Germany, we’re just getting started. We’re just getting started in Nordic markets and Netherlands and things like that.”

Drew Vollero – CFO

The North American markets remains key

We believe North America remains a leading indicator for the scale potential of our business. North American ARPU was $1.81, more than double our global average which was up 170% versus last year.