Snap Inc. (SNAP) Earnings Call Transcript & Summary

Hi, everyone, and welcome to our Third Annual Partner Summit. We're thrilled to be here with all of you, and we're so grateful for all of the amazing things we've been able to build together, especially during such a challenging year for our community and the broader world. Working together and serving our community has been a source of joy and hope for all of us. Today, we'll share exciting new products and partnerships across our developer, creator and augmented reality platforms. Snapchat has evolved so much over the past 10 years. And through your partnership and ingenuity, we've brought amazing content, AR experiences, games and so much more to Snapchatters around the world. Our camera is playing a meaningful role in people's lives, not just because it allows people to document and save important moments, but because it empowers a new type of human connection through visual communication. We've seen the way that people can build deeper relationships when they're able to express a full range of human emotion through our camera, not just the pretty and perfect moments made for social media, it's everything in between that helps to bring us closer together. We're focused on contributing to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together. As a result, people open Snapchat 30 times every day on average to connect with their friends. Snapchat reaches over 280 million daily active users around the world. And we now reach over 500 million monthly active users and nearly 1 of every 2 smartphone users in the United States is on Snapchat. In the U.S., France, U.K., Australia and the Netherlands, Snapchat is becoming an indispensable part of people's lives, reaching 90% of 13- to 24-year-olds and 75% of 13- to 34-year olds. Our community outside of North America and Europe is growing rapidly, with over 50% year-over-year growth for the past 2 quarters. In fact, roughly 40% of our community is now located outside of North America and Europe. For example, in India, we have grown daily active users over 100% year-over-year in each of the last 5 quarters. Our community of partners is growing too. We now serve over 500 content partners on our Discover platform and over 250,000 developers with Snap Kit. And our partners continue to grow their businesses with Snapchat. In fact, last year, we grew our payments to creators and partners by over 100%. As we continue to develop new experiences for Snapchatters, it's the trust that we have built with our community over the last decade that allows us to rapidly experiment with new technologies. With the evolution of the camera from a communications tool to an augmented reality platform, that trust has never been more important. One of the ways we try to improve our business is by looking critically at our products to make sure they are inclusive of all members of our global community. The camera itself was initially optimized to capture the appearance of white skin. While cameras have evolved and become better at capturing different skin tones, there's still a lot more work to do, and we are determined to contribute to these efforts. We want to build a more inclusive camera that works for each Snapchatter regardless of who they are and what they look like. [Presentation]

Of course, we will bring these features to Camera Kit so developers all over the world can easily make their cameras more inclusive. We're always thinking about new ways that we can use our platform to make a positive impact in the world. From well-being and mental health, to privacy and data protection, our community deserves support from our team and partners. We are determined to operate our business within Earth's planetary boundaries. Earlier this week, we announced that we're now carbon neutral and that we've committed to further reducing emissions and purchasing 100% renewable electricity. Today, we're gathered in a forest, inspired by Southern California's National Forest and State Parks, which are home to a biodiversity hotspot, a region that contributes significantly to the diversity of life on our planet. Today, we are launching a new multiyear partnership with Re:wild, an organization that protects and restores the wild. Together with Re:wild and the National Park service, we will be rewilding Southern California's incredible parks and working to protect the region's extraordinary biodiversity. We will also launch an in-app educational awareness campaign this fall to empower our community to learn more about the environment and how restoration can help. Our responsibility to the environment is one of the ways we continue to support our partners and care for the planet that we share. Thank you again for joining us today. And now I'd like to turn it over to my friend, Ben Schwerin, for more on our partnerships.

Thanks, Evan. We are so excited to be here today with all of our partners. We love the Snap Partner Summit because it's a day of celebration. It's an opportunity to welcome our partners and share all the things we're building together to enrich friendships and to entertain, inform and delight Snapchatters all over the world. When we first launched Snap Kit, we saw the opportunity to build the developer platform that makes it easy for partners to integrate our most powerful features. We insured it was designed with a privacy centric approach and helps developers innovate, extend their reach and grow their businesses. Snapchat has changed the way people communicate, tell stories and use AR in their daily lives. Through Snap Kit, developers can leverage Login, Stories, Bitmoji, the Snapchat camera and our Minis to enhance their own services. It's our way to bring the world into Snapchat and Snapchat into the world. Today, Snapchatters share our partners' content, like tweets from Twitter and tracks from SoundCloud into our camera nearly 600 million times per month. Let's take a look at one of our new partners who is reaching the Snapchat community through the power of visual communication. YouTube and YouTube Music will use Snap Kit to share videos to the Snapchat camera. Later this year, everything from makeup tutorials to music videos on YouTube can be part of the conversations you're already having. For developers, integrating with Snapchat can enhance the rich visual conversations our community has every day with their real friends and bring Snapchatters back to their own apps with a single tab. Last year, we launched 2 new products, which make it easy for developers to build AR experiences for their customers. Dynamic Lenses bring real-time information from our partners apps to Snapchat, to expand their reach and Camera Kit makes it possible to integrate Snap's AR technology directly into our partners' apps for an added layer of engagement. Los Angeles based Sendit uses Dynamic Lenses to create quick and catchy games. Users can create trivial lenses right in the Sendit app and send them to their Snapchat friends. Sendit's innovative use of Dynamic Lenses generated over 1 million app installs and rose to the top of the app store within 1 month after launch. We're also helping companies around the world offer their customers locally relevant AR experiences. In India, ShareChat's Moj app is used by over 85 million people every month to make short-form videos and compete in daily challenges. They brought our camera into their own app and plan to create 200 lenses this year through our Camera Kit integration. Some of our top lens creators in India are creating these lenses, which are viewed over 45 million times a day on Moj. Last year, Samsung leaned in early to our platform, and brought Bitmoji to their Galaxy smartphone keyboards. This year, they added Snapchat lenses to their native camera app across their popular Galaxy A series. We believe that the success of augmented reality is dependent on a diverse developer community to help push the boundaries of AR experiences. And because the Snapchat generation is 150% more likely to preferred communication with images rather than words, the camera will become even more central to the way we interact and build relationships. Camera Kit can help the future of online dating be more expressive and give matches a creative way to kickstart conversations. Bumble is helping its users take a more personal approach to their dating journey through our camera technology right inside their app. Beginning today, matches can send video notes and use Snapchat lenses to make their getting-to-know-you chats more engaging. Our lens technology has the power to transform some of the most iconic locations in the world through augmented reality. From the Eiffel Tower to Big Ben, to the flat iron building in New York, Snapchat lenses help you see the world in an entirely new way. So in collaboration with Disney Photopass Service and Walt Disney World Resort, we asked what if Camera Kit could be used to bring AR to the most magical place on Earth. We're excited to share that later this year we're collaborating to bring our camera technology to Walt Disney World Resort. Disney guests can capture memories like never before, with experiences powered by Snap. Starting today, fans can get an early preview on Snapchat with new Mickey Mouse and MiniMouse lenses available for a limited time. This fall, using the My Disney Experience app, you'll be able to snap once in a lifetime moment at iconic locations with your favorite characters. During your next visit, imagine adding fun AR extras to photos and videos you take, including Disney Parks balloons and Mickey ears. And there's more to share. Let's learn how Disney will use Snap's Camera Kit technology to commemorate a very special upcoming occasion. Please welcome Gary Daniels, the Vice President of Digital Experience at Disney Parks, Experiences and Products.

Thanks, Ben. It's hard to believe it's been nearly 50 years since we first opened our gates. Since then, we've immersed our guests in their favorite Disney stories and taking them on far off adventures. Generations have made memories together at Walt Disney world. And this fall, get ready for a celebration 50 years in the making, the Walt Disney World Resort, 50th anniversary, the world's magical celebration. To mark the occasion, we will be offering guests a new way to commemorate their visit with the help of Camera Kit. Let's take a look. Using the My Disney experience app, you'll be able to help transform Cinderella Castle at Magic Kingdom Park, place your PhotoPass photo onto the Castle and augmented reality. Now when you step back and look through your lens, you'll see a mosaic of memories shared by fellow guests, much like what you see now. The best part is you can share your photo on the castle with your friends and family. And the next time you return during the celebration, your photo will be there waiting for you. Snap's augmented reality brings a fresh perspective and new dimension to Disney story telling in our parks and at home for memories that will last a lifetime. We're thrilled to work with Snap on this in the coming months.

Thanks, Gary. All it takes is some imagination and Camera Kit to bring this magic to life. Snap's developer platforms make it possible to bring the intelligence and power of the Snapchat camera to partners apps and build sustainable businesses with Snapchat. We can't wait to help you create. Up next, John will share the latest on creative tools and our offerings for game developers.

Thanks, Ben. On Snapchat, visual communication is complemented by a suite of creative tools, which are used nearly 1 billion times per day across snaps and chats. There's a perfect Bitmoji, Sticker and GIF for every mood, situation and reaction and a friendmoji that captures every friendship. They add so much expressiveness to the moments you capture and want to share. We're now offering this entire library to developers with Sticker Kit. Sticker Kit adds so much expressiveness to the moments you capture and want to share. Through one convenient interface, developers can easily integrate creative tools into your app experiences. Now over 34 million Bitmoji, stickers and GIFs are at your communities fingertips. Sticker Kit offers a multitude of ways to add creative elements into your messaging and camera experiences that make conversations more expressive than texts alone. For example, our Camera Kit partner, Bumble, has made the perfect match with Sticker Kit for online dating. Later this year, they're bringing Bitmoji and stickers to their platform, so matches can flirt as their virtual selves and keep chats going with their favorite GIFs. But creative tools like Bitmoji have evolved to become far more than just fun avatars for visual communication, their way to express personal style and truly reflect you. Some of the world's most iconic brands like Ralph Lauren and Jordan have brought their virtual apparel to Bitmoji. In less than 1 year, Bitmoji looks from branded collections have been tried on over 5 billion times. And this year, we're broadening the representation possibilities for our community. We recently introduced wheelchair stickers for Bitmoji. And in the first month, they were used by our community to represent themselves over 1 million times in conversations with friends. But we know that there's much more to inclusion. So we're taking feedback directly from our community to inform future design, so that Bitmoji can better represent everyone exactly how they want to appear. Because Bitmoji feels so personal, we've seen that Snap Games players with Bitmoji's spent twice as much time playing than those without. Last year, we introduced Bitmoji for games. So developers can leverage the connection people have to their Bitmoji, and players can find themselves in starring roles in their favorite games. Today, Bitmoji for Games is coming to the Unity platform. Developers can deepen engagement and customization for their players across mobile, PC and console games. Our Unity plug-in makes it possible for some of the most creative minds in the world to bring 3D Bitmoji into their player experience. With 200 million people using Bitmoji every day, the competition in your game is about to get personal. For iOS and Android developers, creating a game and building an engaged audience is no easy win. Over the past 2 years, we've been building a platform for game developers to create shared experiences for Snapchat's global community and leverage our real friends network. Today, you can find more than 30 games that developers have built for Snapchat in just 2 years. With nearly 30 million snapchatters playing every month, it is all fun in games. Let's take a deeper dive into the success of one of our favorite games this year. Aquapark.io is a water slide game published by Voodoo, which was reimagined as a real-time multiplayer game just for Snapchat. Race your friends to the end of the water slide and bump into your friends to improve your chances. If you really want a wild ride, take a leap of faith and slide off the side. Aqua Park has been a tidal wave hit with Snapchatters. The easy game mechanics make it a natural fit for playing with friends. Since launching on Snapchat last fall, it has reached nearly 45 million players. After getting their feet wet with aquapark, the Voodoo team is now diving in head first, introducing 5 more game titles on Snapchat this year. With our platform, it's easier for publishers like Voodoo to broaden the engagement and revenue opportunities for the hundreds of developers they work with. I'll now hand it off to Will to share our partners big success with Minis built on the same foundation that Powers Snap Games.

Thanks, John. Friendship is more than what we talk about. It's the moments we share with each other, whether it's playing games, sharing what you're up to, studying for a test or planning a trip, Snap Games and Minis offer a novel way to create social experiences on Snapchat. They're easy to use and seamlessly share into the camera to encourage your friends to join in. Rather than build 2 separate apps for Android and iOS, partners can build one game or mini that launches instantly with no installation required. And now partners can earn revenue through our popular format Snap Ads, Snap Tokens or by offering their goods for purchase. In just 2 years, more than 200 million Snapchatters have played with Games and Minis. Let's look at some recent Minis from our partners. Givingli's small team build a Minis so you can celebrate friendships with customizable virtual greetings. Instead of spending hours, browsing the card isle to find the perfect one, the Mini makes it easy with hand-illustrated greetings from independent artists that feel as special as receiving a snail mail delivery. Over 2 million Snapchatters used Givingli to design digital cards for Valentine's Day. And in a year where Snapchatter's wanted their voices to be heard, Minis provided them the opportunity to get out the vote. The TurboVote in Mini helped 30 million Snapchatters learn about the election and over 1 million registered a vote. Let's check out some upcoming Minis, bringing e-commerce to real friends on Snapchat. With the Poshmark Mini, you can join daily shopping events hosted by Poshmark, browse and shop themed "Posh Parties" that range from athleisure to evening wear, snap your favorite items to your friends and invite them to join the sale, then check out, all without leaving Snapchat. And the new Ticketmaster Mini lets you swipe right or left on different artists playing around the world and connect with Snapchat friends who want to see the same show. Now Snapchat has always opened to camera. And soon, Games and Minis will have a new home, which you can find by just swiping down, pin and organize your favorites, so they're always within reach, and you never miss a moment. Timely updates from Games and Minis will appear there too, whether there is an upcoming show to see with your friends or someone special's birthday is coming soon. It's essential destination that makes Games and Minis easier to discover, quicker to access and makes it possible for our community to connect more closely with partner experiences. Next, we wanted to talk about one of our community's favorite features, the Snap Map. We launched Snap Map in 2017 and set out to make the world's most personal map. It's where you can connect with the people, places and things you care about, no matter where they are. Now more than 250 million Snapchatters are using the Map every month. With just a quick swipe around the world, you see an ever-evolving view of where your closest friends are and what they're up to. You can also see what's happening in real-time through Snaps shared by the community. We've started integrating businesses, stores and universities into the Map, helping our community connect with familiar places and discover new ones. There are more than 30 million businesses on the Map and a growing number of small businesses see our Map as a new way to build relationships with Snapchatters. And we've been working to bring AR to the Snap Map with markers for special lenses. Earlier this year, we reimagined the streets of L.A. through our partnership with Los Angeles County Museum of Arts. These geolocated lenses across the world are even better when shared in person. Today, we're introducing a new feature to the Snap Map called Layers. They're a way to find specialized experiences from select partners and Snap right on top of our Map personalized just for you. Let's take it to the streets to check out our upcoming Layers. Select our memories layer to take a virtual walk down memory lane. As you move around the map, you'll see Snapchat memories where they took place, whether you're in your home town or on trips around the world; from there, share them with your friends to relive those moments. And when you and your friends are looking for amazing eats nearby, the Infatuations Layer has you covered. I'm on the hunt for the best Mexican food in L.A., and it looks like restaurants serving up the tastiest tacos and ceviche are only a few steps away. Let's head to New York City to explore our next map later. Tap the Ticketmaster Layer to see what concerts are coming up and who is playing your favorite venues nearby. It will lead right into the new Ticketmaster Mini, where you can buy tickets to the show. All these layers will roll out in the coming months. And with these new ways to explore and places to visit, the Snap Map continues to evolve into a world view built for friends. On our platform, partners can spend their time creating unique experiences, knowing that on Snapchat, they're building for a global audience of close friends, benefiting from our chat capabilities, Bitmoji, AR, creative tools and maps, all for free. We love working with new partners to bring creative ideas to life. I'll welcome Reesha to share more on creators, Snap Stars and the latest on spotlight.

Thanks, Will. On Snapchat, everyone is a creator, whether you're making a special snap to send to a friend, capturing a hilarious moment to share with the whole community or starring in Snap Originals. Snapchat is a place where anyone can bring their creative ideas to life. Six months ago, we introduced Spotlight, our community-driven entertainment platform where you can share creations in a way that's safe and fun, regardless of whether you have a private account or a public profile. Top Snaps can reach a massive audience, no matter who created them and how many subscribers they may have. It's helping a new generation make their way to center stage. And their passions and talents are on display from oddly satisfying Snaps, wild magic tricks and ingenious inventions to the compelling way Snapchatters are using Lenses and Sounds. The creativity of our entire community is shining. Spotlight is rolling out globally and already reaches over 125 million monthly active users, and our community loves what they're seeing. The number of viewers watching Spotlight for at least 10 minutes per day grew by over 70% from January to March. Snapchatters are continually rewarded for their creation, and anyone can earn from the millions per month we offer to those who make top videos. Since we launched in November, over 5,400 creators, have collectively earned more than $130 million. Success on Spotlight has helped Mike Mulligan spread awareness and support for people who are blind and visually impaired. It's helped Katie Feeney apply to her dreamlist of colleges that were previously out of her financial reach, and it's enabled Dominic Andre to start his content house for creators passionate about education. Beyond Spotlight, emerging and established creators are thriving on Snapchat. They can meaningfully grow their audience as they connect with fans through their public stories and entertain our community with shows and Snap Originals on Discover. Top creators like Model Roz, Rickey Thompson and Salice Rose, delight Snapchatters around the world every day and are an essential part of the Snapchat experience. In India, this fall, we announced the first ever locally produced slate of creator shows, featuring popular television actress, Anushka Sen, comedian Vir Das and more. These series are available to the more than 70 million viewers in India, who watched Snapchat shows last year. In 2020, our Snap Star program in the Middle East grew by over 300% and now includes talent like famous Saudi Arabian singer, Abdul Majeed Abdullah, and Arab Idol winner, Mohammed Assaf. 300 million views were garnered there on average each day in the first quarter from Snap Star stories. It's been exciting to see creators globally build their businesses on our platform. Comedy creator, Ross Smith, has built a highly successful multimillion-dollar business on Snap. His 3 shows have collectively amassed 20 million subscribers and have already reached over 100 million viewers this year. Many have gone on to capture the attention and adoration of our community with their own Snap Originals. The second season of Beauty Mogul Nikita Dragun's hit show, Nikita Unfiltered aired in March. And the series has now been watched by over 30 million Snapchatters. Long time Snap Star Loren Gray's new series, Honestly Loren premieres next month, giving her fans a real introspective look at what it means to be an influencer. Let's take a look at how all kinds of creators are expressing their ideas and finding success through the Snapchat camera. [Presentation]

We're thrilled by the success creators are having on Snapchat, and we want to give them even more support in bringing their ideas and perspectives to life. Today, we're announcing new tools and workflows so creators have the flexibility to work how they want, introducing Story Studio. It's a new app offering creators a suite of easy-to-use powerful editing tools to make professional content for mobile, on mobile. It's a fast and fun way to make original, engaging vertical videos that share right to Snapchat and anywhere else, explore insights into what's trending across Snapchat Sounds, Topics and Lenses or simply tap to get started on your own creation. From there, you can trim, slice, cut and layer your videos with frame by frame precision, place creative elements in your scenes with captions, stickers and sounds and then layer on visual effects across your Snaps, using Lenses. Let's take a closer look at Story Studio. [Presentation]

We're building Story Video alongside an early wave of creators, whose feedback is helping shape what will roll out late this year on iOS. For creators and brands who prefer to work on desktop and lean on tools like Final Cut Pro, we're now making it simple to upload content into Spotlight directly from Chrome or Safari, even in 4K. And there's a new destination for Spotlight Snaps on the web. So anyone, anywhere can get a taste even without a snapchat account and see what's happening. Head here to check it out. We're also working on new ways to support creators careers through audience engagement on Snapchat. Last year, we rolled out Story Replies, an easy way to connect with creators about a Snap they've posted. Our creator community use the Story Replies as a way to build stronger relationships and engage with their fans. In the Middle East, for example, over 90% of Snap Stars received Story Replies in response to their posts. Through this feature, we give creators control over the types of messages they receive with custom filtering, so conversations stay respectful and fun. Now we're introducing a new monetization platform for creators through Story Replies. It's called Gifting. A gift is a show of support creators can receive from their fans, who want to build meaningful personal relationships with them. When a subscriber sees Snaps that brought delight to their day, they can send gifts and kickstart conversations with stars they love. Snap Stars own a share of the revenue from gifts received through Story Replies. Gifting will start to roll out to Snap Stars later this year on Android and iOS. Now please welcome Carolina to share more on how our partners are building their businesses with augmented reality on Snapchat.

Thanks, Reesha. You've heard so much about how our camera connects the Snapchat community to entertaining experiences, to chat with friends and to discover and learn. We're excited about the power of our camera platform to bring Snapchatters together with the businesses they care about in meaningful ways. And now more than ever, our community is eager to experience and try on, engage with and learn about products in new ways from home. More than 200 million Snapchatters engage with AR every day. Lens Studio is the foundation for any brands, partner, developer or creator, to combine a range of technical and creative capabilities to build, publish and promote Lenses to the world's largest AR community on Snapchat and in their own apps Through Camera Kit. And it's powering success for a wide range of businesses. Gucci showcased some of their coolest kicks, which could be tried on through AR and purchase, reaching nearly 19 million people with their lens. Eyewear retailer, Clearly, offered a selection of frames using AR, driving a 46% increase in unique page viewers to their site. And American Eagle created a virtual pop of store, generating $2 million in incremental sales. Plus our recent beta program with over 30 brands from beauty to auto, Snapchatters tried products on over 250 million times, and were more than 2x as likely to purchase than average. We've spent the last several years investing in lens capabilities. So now we got brands covered from head to toe, and we're working to improve the underlying technology to make lenses more realistic, immersive, accurate and easy to navigate. Let's have a look at a few new AR try-on experiences built with our closest fashion partners. Jewelry brands and fine watchmakers like Piaget are using wrist tracking technology, making it possible to try on some truly special time pieces. For categories like eyewear, in order to drive purchase decisions and be as useful as try-on in a store, accurate sizing is a total must. Our new true size technology helps you try on accessories in a way that mirrors the real-world experience, increasing buyer confidence and reducing returns. Now businesses like Zenni Optical can help Snapchatters find frames that fit them perfectly and hit their frame of mind. And luxury partners are investing in ways for shoppers to browse products in natural ways beyond tapping their phone screen. Take Prada, who is using our new gesture recognition capabilities that allow you to signal to our camera when you want to check out another bag or change the color of an item; or Farfetch, who is using our new voice-enabled controls. It makes try-on and shopping as fun as chatting with your own personal stylist. Let's check out what we've built together to bring your virtual closet dreams to life through their catalog of products. With this new lens, to see the latest style, just say what you're looking for. "Can you show me a windbreaker jacket?" Or ask for something else, "Maybe something with a pattern," using natural language voice command. "That's awesome, take a snap." When you love your look, you can snap it and buy it. Now creators and businesses can tap into more than 40 voice commands in Lens Studio, no custom machine learning skills needed. Also, starting today, we're introducing API-enabled lenses. For the first time, businesses can tap into dynamic and automatic ways to feature their real-time content in AR without additional work. Shopping and browsing products brings in-store experiences even closer to home when lenses are connected to up-to-date product inventory. Gone are the stock ads and gone are the out-of-stock blues. Take the Estée Lauder company. Through our partnership with Perfect Corp., they're among the first to leverage our new AR shopping platform tools. In the coming months, brands can integrate their product catalog through our API and Business Manager to upload their 3D product assets. From there, they can use our Lens Web Builder to select SKUs, build lenses from new AR shopping temples and publish right to their profile in just a few clicks. Launching today, any partner can establish a permanent presence on Snapchat through public profiles for businesses, where they can showcase their lenses, highlights and stories. You can even browse and try on through our shop feature, turning Snapchat into a new point of sale. Once you're up and running with your profile and shopping lenses, our new AR shopping analytics offer insights on lens performance and how people are using your virtual products. So brands like MAC Cosmetics can learn, which items, colors and style their customers are most interested in, making it easy to gather fast, early signals to inform marketing and targeting decisions and even upcoming product developments. Beyond shopping lenses, we're opening lens API capabilities to a select set of additional partners. With real-time data from partner APIs, lenses just keep getting smarter, and Snaps can better capture the moment you're in. Take Major League Baseball. By bringing stats from live games right into lenses, the current score becomes part of your stories as you celebrate game winning runs in the moment with friends. You can try it today. Or with Strava's Lenses, which feature their users' latest fitness metrics. After a long run, a lens will be waiting for you the next time you open Snapchat, making it easier to humble brag about your improved mile time to your workout buddies. And for anyone who wants to bring AR to their mobile experiences, but doesn't have an expert on call, we're introducing a new creator marketplace. Brands and partners can use our self-serve business manager portal to find and contact verified creators, streamlining the connection to some of the best professionals in the world and giving lens creators new opportunities to build their own businesses. Next, please welcome our co-Founder and CTO, Bobby Murphy, who will share the latest on our camera technology for lens creators across Scan and Lens Studio.

Thanks so much, Carolina. We are so inspired by how the Snapchat community all over the world uses our camera. Because it's so easy, fast and fun, more than 5 billion snaps are created every day on average, making the Snapchat camera one of the most used cameras in the world. Whether it's a quick snap to a friend or a creative masterpiece shared to Spotlight, our camera is at the center of how Snapchatters communicate with loved ones and express themselves. And through developments in hardware and software, today, we can do so much more with our camera than capture and communicate. We can understand, interpret, edit and augment scenes all in real time. Our goal is to continue to bring together digital and physical experiences through the Snapchat camera. We're building this next generation of personal computing around your perspective, with information and entertainment immediately accessible as you connect with friends, discover the world and get things done. The building blocks for this future are Scan and Lens Studio. We introduced Scan 2 years ago, allowing you to search through millions of lenses in the fastest and easiest way possible with the camera. Scan matches what you see through our camera to the most relevant AR experiences on Snapchat. Today, we're bringing the Scan button front and center, placing it right on the main camera screen of Snapchat, making it easier than ever to find fun and helpful experiences. More than 170 million Snapchatters scan the world around them every month to surface delightful and informative lenses from creators and our close partners. These lenses give you the power to identify hundreds of dog breeds, more than 600,000 plants and trees and millions of songs and products, and we're continually adding new categories of intelligence to Scan, like fashion and food. Screen Shop is now a part of Scan, giving every Snapchatter a personal shopper right in their camera. When you scan a friends outfit, Screen Shop's catalog helps you shop similar looks with recommendations from hundreds of brands or you can select a photo from memories to shop based on the looks you saved, offering a creative new way to get outfit inspiration. And Allrecipes will soon recommend recipes to our community based on the ingredients in front of you. So when you don't know what to make with a ripe avocado on your counter, you can just scan it, then suggestions for guacamole or breakfast bowl from Allrecipes are immediately at hand using the camera you already have open. Scan not only connects you to Lenses seamlessly, but will also offer suggestions for different ways to use our camera. We're introducing Camera Shortcuts. Camera Shortcuts combinations of creative tools that make it even easier to capture the moments you want to share. So if you're at the beach, watching the sunset, simply open your Snapchat camera and scan the sky. A shortcut will appear, suggesting a camera mode, a lens and even a curated soundtrack to make a smooth summer snap. Whether you're looking out at the horizon, down at your feet, dancing with friends or just home with your dog, our camera will be ready to help you capture the moment. Over time, we'll continue adding new shortcuts for different scenes, including suggestions for Spotlight. Camera Shortcuts are starting to roll out today. All lens creations starts with Lens Studio. And today, we're excited to launch Lens Studio 4.0. Lens studio 4.0 enables creators, developers and partners to build the most robust and technically advanced lenses yet. Let me step into Lens Studio to show you what's new. We're introducing visual classification. Visual classification brings the same technology that powers Scan into Lenses, allowing them to understand more than 500 categories of objects, so you can easily build AR experiences that interact with substantially more of the world. Last year, we introduced SnapML to give creators the flexibility to bring custom machine learning models directly into their lenses. We've been absolutely amazed at what people have built. This year, we're expanding SnapML to allow machine learning models to interact with sound. Now you can import ML models that analyze and generate audio. So lenses can recognize phrases, transcribe speech and even make music. Using this, the team at Artiphon built a lens that turns everyday objects around you into virtual musical instruments. So anything in your room can become your very own symphony or a synthesizer. [Presentation]

We're also adding multi-person 3D body mesh, advanced cloth simulation and a new visual effects editor, bringing incredible realism in detail to Lenses. Let's see how Snap use these new capabilities to create a lens celebrating Walt Disney Picture's upcoming film Cruella. First, multi-person 3D body mesh allows for an unprecedented level of volumetric body tracking so virtual elements look remarkably real. With cloth simulation, virtual cloth can mimic physical fabric. You can see the outfit drapes dynamically, adjusting in response to movement in different body types to look completely custom. And our new visual effects editor makes it possible to add cinematic quality effects, effects like flames, fireworks, or even falling snow look extremely high detail, thanks to this node-based programming tool. The sky is the limit on what you can create, no code required. With this lens, you can spot Cruella's infamous look just-in-time for the film's premiere. Finally, in this release, we're introducing Connected Lenses. For the very first time, friends can interact with each other through lenses from across the room or across the world. After all, everything is better together. Let's see a connected lens in action. [Presentation]

You can check out this lens the LEGO Group's Snapchat profile. Lenses are becoming more and more advanced. And with that, we want to give creators the information they need to build even more engaging and retentive experiences. So today, we're launching Lens Analytics. Lens Analytics provides deep visibility into lens engagement beyond view counts and shares. Anonymous and aggregated data bring rich detailed insights to help creators learn from their audiences and build better lenses, all while protecting the privacy of our community. These performance and engagement metrics make it easy to see the impact of a lens, so creators can understand who their lenses are resonating with and how they are being used. We can't wait to see how lenses evolve with these new analytics. Our community has grown to over 200,000 lens creators from around the world. They've made nearly 2 million lenses that have been viewed by Snapchatters more than 2 trillion times. In the past quarter, that's an average of more than 3 million views per minute. And together, we've widened the aperture on what a lens can be. We want to recognize creators, developers and small teams who are pushing technical and creative boundaries alongside us. So in support, we're introducing Ghost, our new AR innovation lab. We've committed $3.5 million to support creators' projects and have partnered with Verizon to invest an additional $1 million for 5G AR experiences, learn more and apply today. We're so amazed by the creativity of our community and the incredible power of augmented reality to change how we interact with each other and the world around us. Thanks to all the partners and creators tuning in today, we're so grateful to be building the future with you. I'll welcome Evan back for some final thoughts.

Thanks, Bobby. We couldn't be more excited about what we are building together in augmented reality. Together with the AR creator community, our journey-building Spectacles over the years has been one of exploration and learning. We've made a lot of progress, but our work here is far from over and in many ways, it's just beginning. As humans, we tend to perceive our reality based on what we're able to see, hear and touch. But we know that the miracles of life are the things we can't physically experience, what's in our minds, our hearts and our spirits. The things that we can't actually see are what make life so extraordinary. And throughout history, we've gone to great lengths to express what is inside all of us through art, design, engineering and more. This past Easter, I read a sermon by the reverend Dr. Martin Luther King Jr., where he spoke about the feeling of looking at a beautiful building and seeing the mind of the architect. But it can take millions of dollars and often many years for an architect to transform an idea into a physical structure. What if we could make our imagination real in minutes, if we could take what is inside our minds and seamlessly share it and experience it in the world together. This is the promise of augmented reality. It's why we're working so hard to build the tools and technology to make it easier to add new layers of fun and utility on the world around us. There's so much genius in the world that is yet to be seen and that hasn't been experienced until now. [Presentation]

Introducing the next-generation of Spectacles, our first pair of glasses that bring augmented reality to life, with dual 3D wave guide displays and a 26.3 degree diagonal field of view, immersive lens experiences feel like they're naturally overlaid on the world in front of you. You can view these experiences, whether you're indoors or outside and the display dynamically adjusts shining up to 2,000 nits of brightness, so lenses always appear with full image quality. Two RGB cameras, 4 built-in microphones, 2 stereo speakers and built-in touch pad controls offer a multi-sensorial experience that redefines the way we interact with and see the world. All of this is powered by our new Snap spatial engine, which leverages 6 degrees of freedom, hand and surface tracking to realistically ground digital objects in the physical world. 15 millisecond motion to photon latency means lenses react quickly and appear accurately in your field of view. At 134 grams, you can bring Snap's world of AR anywhere for boundless creativity and exploration. They're fully integrated with lens studio, so creators can simultaneously build and interact with their lenses in real time, watching them come to life right before their eyes. Start by setting up Spectacles with your phone, then take them out where they can operate on their own. You can explore, capture and create from anywhere for approximately 30 minutes at a time. Let's take a closer look at how they work. Tap on the temple's touch pad to bring up the lens carousel. There you can launch lenses, including ones creators build themselves in Lens Studio. Use the right button to activate Scan, or you can speak a command, "hey, Snapchat, let's play a game," tapping the vast potential of Snapchat's AR platform. Spectacles understand what's in their field of view, and suggest relevant lenses bases on what's around you. You can then snap the scene and send it to friends to share the full picture. We've offered the Spectacles a select group of global creators so they can bring their imaginations to life with the world as their canvas. They are a perfect match for AR development with Lens Studio. For the first time creators can build lenses, see them overlaid on the world and realize their vision by sending snaps to friends right from the glasses, push the Spectacles directly, test and iterate instantly. They're already in creators' hands. Let's take a first look. [Presentation]

We are so excited to see what people are already building for Spectacles and we know there is so much more to come. You can get started today by visiting spectacles.com. We are so grateful to all of our partners, and we can't wait to continue collaborating with you. Thank you so much, and see you soon.