Is Snap Stock Worth Your Attention? (NYSE:SNAP)

Carl Courtroom

Introduction

After a really lengthy break, I made a decision to renew my writing right here on In search of Alpha beginning with Snap Inc. (NYSE:SNAP). That is going to be the second time I’m writing in regards to the firm – theright here

R&D, % of Revenues

Firm’s 10Ks, creator’s calculation

DAU composition by region

Firm’s 10Ks, 8Ks and creator’s calculations

DAU growth decomposition & contribution

Firm’s 10Ks/8Ks and creator’s calculations

Revenue contribution by region

Firm’s 10Ks/8Ks and creator’s calculations

ARPU decomposition & contribution

Firm’s 10Ks/8Ks and creator’s calculations

YoY ARPU growth in North America

Firm’s 10Ks/8Ks and creator’s calculations

ARPU by Area

PINS

Q1’2022

Q1’2023

N.A.

$5.0

$5.1

Europe

$0.7

$0.7

Remainder of W

$0.1

$0.1

TOTAL

$1.33

$1.32

ARPU by Area

META

Q1’2022

Q1’2023

N.A.

$48.3

$48.9

Europe

$15.4

$15.5

Remainder of W*

$3.8

$3.9

TOTAL

$9.54

$9.62

YoY Total revenue growth

Firm’s 10Qs and creator’s calculations

TTM Q1’2019

TTM Q1’2020

TTM Q1’2021

TTM Q1’2022

TTM Q1’2023

EBITDA

-$1,111.1

-$940.8

-$740.8

-$395.7

-$1,243.4

SBC

$567.5

$695.5

$835.2

$1,130.5

$1,427.3

Adj EBITDA

-$481.2

-$160.0

$124.7

$682.9

$313.9

SBC contribution

90%

89%

96%

105%

92%

Fairness

After-Tax

Debt

Capital

Weight in Value of Capital

83.3%

16.7%

100%

Part value

13.44%

4.44%

11.93%

Valuation model results

Writer’s calculations

Monte Carlo simulation result for SNAP value per share

Writer’s calculations

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