# Snap Inc. (SNAP) — Stock CV

Snap Inc. is a $10.5B technology company. Revenue grew 12.6% over the last year, it currently loses money, and its net debt equals ~0.8 years of free cash flow.

> Snap is a technology company best known for its marquis social media application, Snapchat, a visual messaging application that has amassed hundreds of millions of users. The app was initially only used to communicate with family and friends through photographs and short videos (known as "Snaps").

## Identity

- **Ticker**: SNAP
- **Sector**: Technology
- **Industry**: Services-Computer Programming, Data Processing, Etc.
- **Headquarters**: SANTA MONICA, CA
- **Employees**: 5 261
- **Website**: https://www.snap.com
- **Market cap**: $10.5B
- **Last price**: $6.22
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $6.35B
- **Net income**: -$311M
- **Free cash flow**: $706M
- **Net debt**: $596M
- **Revenue growth (YoY)**: 12.6%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 65 |
| Growth | 12 |
| Profitability | 0 |
| Health | 45 |
| Quality | 40 |
| Moat | 25 |

## Qualifications (beginner checklist) — 5 of 9 passed

- [x] Revenue growing — +12.6% YoY
- [ ] Profitable — -$311M TTM
- [x] Profit growing — +34.0% YoY
- [x] Generates cash — $706M TTM
- [x] Debt under control — ~0.8y of cash flow to repay
- [x] Established company — $10.5B market cap
- [ ] Not printing shares — +16.4% shares over ~5y
- [ ] Proven track record — 0/9 profitable years
- [ ] Financially stable — health score 25/100

## Experience (career milestones)

- **2022** — These stacks were being sold to US investment banks during the Biden administration (2022–2024) to swap the…
- **FY2021** — Positive free cash flow every year since: 5-year streak
- **FY2018** — Revenue crossed $1B: $1.18B for the year
- **2018** — The company developed and launched Spectacles V2 first in April 2018
- **2017** — The company went public under the trading symbol SNAP
- **2017** — The company acquired the location sharing app Zenly in a cash and stock deal
- **Feb 20, 2017** — Snap Spectacles became available for purchase online
- **2016** — The company acquired Bitstrips for $100 million, Obvious Engineering, the…
- **2015** — The function was launched in September 2015
- **2014** — Bitmoji was originally launched by Bitstrips in 2014
- **2014** — In December, the company acquired Vergence Labs for $15 million in cash and stock, who were the developers of…
- **2011** — Snap Inc. is an American technology company, founded in September 2011, by Evan Spiegel, Bobby Murphy

## Strengths

- High gross margin (57.5%)
- Revenue growing 12.6% year over year

## Watch-outs

- Not profitable — 4.9% net margin
- Thin interest coverage (-73.2×)
- Loss-making in 9 of the recent years

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $4.12B | -$488M | $223M |
| FY2022 | $4.60B | -$1.43B | $55.3M |
| FY2023 | $4.61B | -$1.32B | $34.8M |
| FY2024 | $5.36B | -$698M | $219M |
| FY2025 | $5.93B | -$460M | $437M |

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Source: https://stockcv.com/SNAP — derived from company filings; may be delayed or incomplete. Information, not investment advice.