Snap (SNAP) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, May 7, 2026 astatine 10:44 AM CDT 35 min read

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DATE

May 6, 2026, 5:00 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Evan Spiegel

• Chief Financial Officer — Derek Andersen

Full Conference Call Transcript

Evan Spiegel: Hi, everyone, and invited to our call. Last fall, we described a crucible infinitesimal for Snap and the imperative to turn our assemblage and engagement, reaccelerate gross maturation improved gross margins and found a clearer way to nett income profitability. We made meaningful advancement connected each of these priorities successful Q1. Q1 marked a instrumentality to maturation successful regular progressive users reaching $483 million, portion monthly progressive users grew to 956 million. Revenue accrued 12% year-over-year to $1.53 billion, including a 3% year-over-year summation successful advertizing gross to $1.24 cardinal and an 87% year-over-year summation successful different gross to $285 million. Net nonaccomplishment improved to $89 million. Operating currency travel was $327 million.

Free currency travel was $286 million, and adjusted EBITDA was $233 million. These results bespeak that we are closing the spread betwixt engagement and monetization portion converting gross maturation into a much durable way towards GAAP profitability. As we look ahead, our priorities are clear: first, turn our assemblage and deepen engagement crossed Snapchat, with a absorption connected highly monetizable geographies; second, accelerate and diversify gross growth; and third, physique a much profitable and currency generative halfway concern portion investing with subject and specs and our semipermanent accidental successful intelligent eyewear. Our archetypal precedence is increasing our assemblage and deepening engagement by making Snapchat the champion spot to pass with adjacent friends and family.

Engagement connected our level is built astir relationships. People usage Snapchat to speech to their friends, to explicit themselves visually, to shar what they're seeing, and to enactment connected to what is happening astir them. That is wherefore we proceed to judge that our connection work is our strongest semipermanent advantage. In Q1, we proceed to put successful caller speech starters to marque communicating with friends easier and much fun. Topic Chats, which allows Snapchatters to enactment successful nationalist conversations astir trending topics and events, gained momentum arsenic we broaden the rollout successful Q1.

For example, the March Madness Topic Chat was 1 of the astir progressive real-time radical jets with much than 90,000 messages sent and highest concurrent information exceeding 40,000 people. Games are besides emerging arsenic a fashionable speech starter with caller 2-player term-based experiences, creating debased friction ways for friends and household to connect. We besides added caller introduction points for games successful Q1 to amended discovery, contributing to games reaching 255 cardinal monthly progressive users. In addition, we enhanced our messaging infrastructure by improving notification, timeliness and relevance and by making it easier for Snapchatters to seamlessly stock contented into conversations.