Thread by @TurnerNovak

Snap Q2 earnings:

- 239m DAUs, up 10m in Q2 (4% QoQ, 18% YoY)
- $1.9b TTM revenue, Q2 up 17% YoY (32% thru July 19th)
- Implied 4.7b snaps sent per day, 20 per user (highest ever, growing 2x faster than DAUs)
- Time watching Snap Shows and AR playtime growing 2x faster than rev

Snap Q2 usage metrics:

- DAU’s open 30x per day (up from 25 in Q3 ‘18)
- DAU growth smooth every month in Q2
- Android rebuild in 2019 drove 37% You RoW DAU growth
- India users up 100% YoY
- Thinks Snapchat's user opportunity is 2b (at 239m DAU's today)

Snap Q2 product reach:

Users engaging with AR: 188m DAU’s
Discover: 100m MAU’s (probably much higher)
Snap Map: 200m MAU's
Snap Games: 100m unique players
Snap Kit: 150m MAU's

Snap Q2 AR / camera usage:

- 76% of DAUs engaging with AR daily (75% in Q1)
- Snaps sent per day grew 2x user growth, or ~35%. Now at 4.7 billion, or ~19.8 per user (highest it's ever reported)
- # of users playing with AR daily up 37% YoY, likely around 188 million DAU's

Snap Q2 content business:

- Snap Originals reached 75% of US Gen Z in 2020
- Added 180 new Discover channels
- Some Snap Shows reached over 100 million people in 2020
- Not much new since the partner summit (more here 👇)

turner.substack.com/p/snap-partner…

No updates on when Snap thinks content teams will be back in production studios. This is an outstanding risk for any premium content company, and a big headwind for pure UGC video platforms like TikTok and text-based like Twitter

https://twitter.com/TurnerNovak/status/1252822776798298113

Snap Kit Q2 updates:

- Added 125 partners; now at 800 total
- 150m MAU’s
- Not much new disclosed since the partner summit (more here 👇)

turner.substack.com/p/snap-partner…

Snap Q2 ad trends:

- impressions up 26% QoQ, up 98% YoY
- pricing down 4% QoQ, down 24% YoY

Contrast with time spent / usage:

- Snap Show DAU’s up 45% YoY
- Snaps Sent per Day up 37% YoY
- Map MAU’s up 100% from Q4 ‘17
- Snap Kit MAU’s up 50% from Q3 ‘18

Snap’s ad business in Q2:

- Active advertisers at all-time high (Snap should disclose these #’s)
- Snap Pixel-verified purchases up 4x YoY
- Facebook boycott mostly impacting brand deals at CEO / CMO level. Snap's business is largely direct response now, not expecting a benefit

More on Snap’s Q2 ad biz:

- Launched “First Commercial”; advertisers bid on first ad user sees in a Show
- Launched Brand Profiles; dedicated pages for brands. (think FB Pages, IG Profile, etc);
- Brand Profiles like tie into AR lenses, Minis, and Snap Map soon

Snap launched Dynamic Ads globally in Q2:

- Auto ad placements based on ROAS targets, has $100m+ of products in catalog
- Adidas saw 52% growth in ROAS in Europe within weeks
- Chipotle saw 171% higher ROAS vs Q1
- Covergirl’s Q2 Snap campaign reached audience 62% unique to Snap

I think of Snap's advertising business through this lens: every product is designed to eventually generate revenue.

“Evan views advertising as a product, while most Internet founders view advertising as a necessary evil.” - @dottkhan, May of 2015

bloomberg.com/news/features/…

11% of Snap’s revenue now comes from China. This is up from the 10% it last disclosed in Q3 ‘19.

Snap's RoW revenue was up only 2% YoY. They hinted COVID had a big impact via supply chain disruptions and that many RoW direct response ad transactions are still paid in cash (?!!?)

Snap didn't actually give Q3 guidance, but estimates:

- DAU’s to 242-244m, up 16% YoY
- Revenue up 20% YoY (at 32% YoY thru July 19th)
- $2.8b cash-on-hand + access to $1b line of credit

Overall, Snap still sees lots of COVID-related uncertainty and short-term impact in 2020

meant tailwind* here

DAU's now at 238 million, not 239 million. And uncertainty on production teams being allowed back in studios is a tailwind for TikTok, not a headwind.

cc'ing Jack for that edit button