Snap Inc. (SNAP) Earnings Call Transcript & Summary

Hi, everyone, and welcome to the Fourth Annual Snap Partner Summit. We've got lots of exciting things to share with you today. But first, let me just say that it is so great to be here with all of you in Los Angeles. Thank you all so much for your partnership. We're having a ton of fun working together with you. And now what was once a far-off vision for computing overlaid on the world through augmented reality is possible today through our camera. It's such a joy to serve our community of over 600 million people with more than 300 million daily active users around the world. We now reach more than 75% of 13 to 34-year olds in over 20 countries, and our global community continues to grow with 3 consecutive years of accelerating year-over-year daily active user growth. Snapchat has changed a lot over the years, and our camera has become far more powerful, evolving from a way to communicate digitally in a snap into an augmented reality platform. On average, people interact with augmented reality lenses on Snapchat 6 billion times per day using computing in totally new ways through our camera. Today, we're dedicating our Snap Partner Summit to our team members in Ukraine. Ukraine is the birthplace of Looksery, the company that laid the foundation of our augmented reality platform. The products and services we are sharing with you today wouldn't be possible without the creativity and ingenuity of our Ukrainian team members, and our hearts have been broken by the war that has taken so many innocent lives. We pray for peace in Ukraine. Augmented reality is important because it combines the power of computing with what we see and experience right in front of us in the real world. It allows us to use computing in a familiar environment, weaving technology seamlessly into our lives. Our augmented realities technology began as a playful tool for self-expression, but it has become so much more through the innovation of our partners. Creators and developers are building a range of AR experiences that give our community the ability to learn new languages through real-world interactions, experience live events like never before. Build monuments that help previously untold stories and easily try on a new pair of sneakers. Our investments in augmented reality represent our ongoing efforts to build technology that serves humanity and that feels intuitive and familiar to use. We started by opening Snapchat into the camera to empower self-expression. Then we made digital communication ephemeral just like how we communicate in person and focus on connecting real friends. We've always wanted people to feel comfortable expressing the full range of human emotion. As a result, over 90% of Snapchatters say they feel comfortable, happy and connected when they use Snapchat. And Snapchat is ranked #1 happiest platform when compared to other apps. Over the years, we've continued to evolve the ways that our partner can build for Snapchat and reach our audience with augmented reality experiences, content gains and more. Increasingly, our partners are bringing Snap technology into their own apps and services using Snap Kit, Camera Kit and Bitmoji integrations. We now work with over 0.5 million partners, creators and developers to provide our community with innovative products and services. Already more than 250,000 creators have built over 2.5 million lenses that have been viewed over 5 trillion times. There are now over 700 Discover partners in 21 countries. And last year, over 0.5 billion Snapchatters watch shows on Discover. Time spent watching Spotlight continues to grow and people now submit 5x as many snaps to spot right per week on average when compared to a year ago. Since launch, more than 340 million Snapchatters have used Games and Minis. And our first 2 layers on Snap Map, Memories and Explorer have been used over 100 million times since launch. Snap Kit developers and partners are helping Snapchatters express themselves. Over the past year, Snapchatters have shared content from our partners' apps like songs from Spotify or tweets from Twitter over 6 billion times on Snapchat. We've also been working with partners to support the next generation of young leaders who are trying to make a positive impact. Last October, we partnered with 10 nonprofits to help Snapchatters learn more about how to make a difference in their local communities by running for public office, with encouragement from friends and support from our partner organization, our Run for Office Mini is a fun and impactful way for Snapchatters to learn more about local leadership. Snapchatters can nominate friends to Run for Office and explore local positions sorted by the issues they care about all in one centralized campaign dashboard. Over 4 million people have already used the Run for Office Mini with over 25,000 sign-ups. With one of our partners, Snapchatters are already taking steps to launch their campaigns. [Presentation]

We are so inspired by the passion, creativity and optimism of the Snapchat community and all of our partners. We're excited to continue collaborating with all of you as we work together to create a brighter future. Now I'd like to introduce Bobby to talk about how our camera is transforming people's lives through augmented reality.

Augmented reality enhances the best parts of being human. It enables us to express ourselves, live in the moment, learn about the world and have fun together. We're investing in AR because it can be woven naturally into our surroundings and the places we love. There's so many exciting new tools and technologies to share with you today, and we can't wait to see what you'll bring to life in augmented reality. By making Snap AR technology available to creators and partners through Lens Studio, Camera Kit, and Spectacles, together we're redefining what's possible through our camera. Our next-generation Spectacles are already in the hands of creators. They're one of the lightest and brightest AR display glasses available, powered by the Snap Spatial Engine, Spectacles leveraged 6 degrees of freedom in hand, marker and surface tracking to overlay computing on the world. Creators are using Lens Studio to build new AR experiences, moving beyond mobile and pushing the boundaries of what is possible at the intersection of innovative hardware and software. We've already learned so much by collaborating with so many talented developers who have used our new Hand Tracking, VoiceML and Connected Lens technology to build totally new ways to interact with the world through Spectacles. Let's take a look. [Presentation]

Our approach to building camera technology is based on inclusivity, openness and responsibility. By building a more inclusive camera, Snaps can reflect the way people want to appear. We're testing new Snapchat features like tone and ring light, which more accurately capture a wide range of complexions, including darker skin tones in low-light environments. And we're constantly working to expand the way Snapchatters can express themselves and make connections through our camera. Everyone should feel that Snapchat is made for them no matter who they are. With this in mind, we strive to design products alongside our community and partners that not only evolve the way we see the world, but help us feel closer to one another. [Presentation]

We're working to advance underlying technologies like machine learning that bring powerful, helpful, impactful AR into focus. ML is what backs our gesture recognition, Body Mesh, human and world understanding tech and enable sign language Lenses, expanding empathy and connection across our community. Children's Hospital Los Angeles worked with creative agency, Electric Factory, to leverage world understanding to build this lens. Kids can follow butterflies and plant gardens around their rooms, encouraging them to move around and increase their activity. This has a potential to add joy and help reduce recovery time after surgery. Our researchers and engineers are always pushing the limits of what's possible with machine learning, taking complex and powerful neural networks and compressing them to run smoothly on hundreds of different smartphones. We're making these breakthroughs available to AR creators in Lens Studio, so everyone can bring their vision to life. From there, developers can integrate our technology into their own applications by using our Camera Kit SDK. Today, we're releasing a new version of Lens Studio to help creators build lenses that are more personalized, realistic and connected to the world. We're introducing several new capabilities that increase the realism of AR elements. With ML Environment Matching and Ray Tracing, AR objects render lighting and shadows realistically, and reflections can shine in a way that's true to life. Now AR jewelry try on can truly sparkle. Tiffany & Co's embracing this technology to build a lens featuring their signature "Bird on a Rock" approach. Ray Tracing brings a new level of dimensionality to AR and is available across a wide set of mobile devices for the first time. And Ray Tracing is heightening the realism of your favorite space ranger with this Disney and Pixar Lightyear Lens. Step into the iconic suit, thanks to our 3D Body Tracking and get ready to soar. The lens will be available for the release of Disney and Pixar's Lightyear on June 17. We've also improved our World Mesh, Body Mesh and Physics features in Lens Studio, enabling our camera to accurately represent depth and occlusion across all types of services. These capabilities can help develop build Lenses with digital elements that interact in a lifelike way and work on an extensive range of mobile devices. Last year, we introduced the API Library, providing access to real-time financial translation and weather data from partners to build smarter and more useful Lenses. For example, SPACE10 and RefractAR teamed up and launched this Lens, leveraging AccuWeather's air quality data API. Just extend a hand and a feathered friend will change colors and share a real-time report from the local conditions. Today, we're expanding the API library with new partners like astrology API. Now lenses can tap into dynamic information like daily horoscopes. We also offer creator's insight into how their lens are performing with Lens Analytics. We provide engagement metrics like views and shares while protecting Snapchatter privacy. Starting today, we'll offer additional information called Event Insights. With Event Insights, creators can better understand what's happening while their lens is in use and more easily to bug issues. We are so amazed by the creativity and technical prowess of our community. We want to give creators the opportunity to build more social AR experiences closely anchored in the world that Snapchatters can return to time and time again. That's why today, we're launching Lens Cloud. It's a collection of back-end services built on the same infrastructure that powers Snapchat. Lens Cloud vastly expand what developers can build in augmented reality. We can't wait for developers to explore what's possible. [Presentation]

Let's take a closer look at how our early developers and partners are tapping into the 3 main components of Lens Cloud. By building with multiuser services, groups of friends can interact together at the same time within the same lens. XR Studio Play is creating a game called Monsters Everywhere. Friends can fill their rooms with friendly little monsters and watch them play together. With location-based services, any developer can anchor their lenses to custom locations around the world. The Chicago Field Museum and Alchemy Immersive will use location-based services to tie a custom landmark to the geographic location of this exhibit. Soon, SUE, their celebrated T-Rex, will come to life with stunning fidelity and accuracy, overlaid on the most complete T-Rex specimen ever found. We hope this inspire the new generation of natural history lovers. Or they can utilize Snap City templates. Central London is the first one available with more launching in Lens Studio over the next year. The LEGO Group will use our City template to make the streets of London more playful using AR. To celebrate their 90th anniversary this summer, Snapchatters will be able to transform the town with Ferris wheels, roller coasters and slides around London City streets. Developers can start building with these Lens Cloud services today. And in the coming months, we'll launch Storage services, which will make it possible to build complex and interactive Lenses by storing assets in our cloud and calling them On-Demand, like Qreal, who built this Lens for New York City's Department of Environmental Protection. Friends will be able to nurture a digital community garden together with hundreds of native flowers and plants thanks to remote storage. With Storage Services, sessions can pick up where Snapchatters left off, thanks to persistent data support. Get ready for a new generation of AR experiences that are more dynamic, useful and interactive than ever before. Sophia is up next to share more about how our community is using our tools to build incredibly immersive and powerful lenses.

Snaps community of AR developers are incredibly creative, technically advanced and are building real businesses around the world. Representing almost every country, more than 250,000 partners are creating on our platform. There are so many AR creators making a name for themselves in the industry. Over 300 developers have reached more than a billion views on their Lenses. From Paige Piskin's eye-catching makeup looks to Fahad Mutlaq's playful 3D creations, a whole new AR economy is growing. As more businesses integrate Snap's AR technology into their applications using Camera Kit, there's increasing demand for extraordinary AR experiences. We are focused on finding ways for our community to grow their careers and build businesses by using our platform. As part of the Snap Lens network, top AR developers receive access to our new tools before they're publicly available. We also invest in experimental projects and paid opportunities to work with brands. Plus, they get the benefit of a verified Snapchat profile that offers them even greater reach to Snapchatters globally. A member of the Snap Lens Network, GoSpooky, received early access to our Lens Studio features. Using enhanced scene understanding and Snap ML, they built this Lens, which replaces motor vehicles with digital gardens. Cityscapes become a canvas for considering our environmental impact. Ghost, our AR innovation lab is another way we support the Snap AR ecosystem. Developers and small teams can receive funding to advance the technical and creative limits of AR. Let's look at what they've been building. Balti Virtual created a new Lens, where multiple Snapchatters can spar as their 3D Bitmoji in lighthearted, hand-to-hand duels. MODEM is developing this posture coach lens which helps Snapchatters pose, practice yoga and get feedback about their positions, thanks to Body Tracking technology. There's also Ecobatics, a Boston-based team, helping people with low vision, better interact with touchscreens and appliances. They built a Spectacles Lens that reads the words the wearer points at by leveraging text recognition and hand tracking. We'll continue to invest in machine learning-based projects with a new Ghost innovation track dedicated to Snap ML research, offering funding along with hands on support from the Snap team. We're seeing so much innovation occur, not just on mobile but also on our next-generation Spectacles. There are already hundreds of developers from 30 countries using our Spectacles' AR glasses to design, build and explore the world using Lenses. Connected Lenses, our multiuser AR framework, powers incredible experiences on Spectacles and our community is already exploring all new kinds of interaction. This first-person AR wand dueling game, created by Alan Yde, is made for 2 players to cast spell to each other like wizards. Creators can apply to receive a pair of Spectacles as we continue to expand our early access on spectacles.com. There's a wide range of partners using Camera Kit to bring our camera technology directly into their own applications using our SDK. From global brands like Disney and Microsoft Flipgrid, the developer is making an app for the very first time. Camera Kit offers a tremendous opportunity to bring AR creations to new partner apps and audiences. Take Samsung, who brought Lenses to their native camera last year on the Galaxy A series. Their customers played with Snap lenses over 1 billion times. Based on this success, they have expanded into the Galaxy F and M Series devices. Using our Camera Kit SDK, businesses can bring a new dimension to their customer experience and dream of new applications for our underlying AR technology. Zoog is an app built in Tel Aviv for reading children's books and creating memories when families can't be together. Parents make story time videos using lenses, effects and sounds as they read. Using Lens Studio, Zoog has built a series of lenses where readers can become a whole cast of storybook characters, making bedtime magic for families. Visionaries777 and XR Studio based in Hong Kong use Camera Kit for their AR tutorial platform. Using Snap AR, they teach people how to find their way around vacation rental homes or even how to use machinery like 3D printers. Smule is a San Francisco-based karaoke app, offering millions of songs to sing with friends. Using Camera Kit, any recording becomes a full theatrical performance. Smule teamed up with blnk through our Creator Marketplace to build new custom Lenses and the engagement has been incredible. Performances recorded with lenses to nearly 50% more views than those without. Starting today, we're opening applications for our Creator Marketplace to anyone, so businesses can search and partner with Snap's top Lens creators to build AR experiences. This year, we'll continue to work closely with new partners to integrate Camera Kit and develop new use cases for AR. Get in touch with us to get started. Next, Carolina will share more on how retail partners have adopted our camera to evolve their customers' shopping experiences.

What we wear is a big part of who we are and how we express ourselves. For Snapchatters, the ability to try and clothing and accessories to augment reality or show off their personal style with their Bitmoji is as important as how they dress at school, at work or out with their friends. Bitmoji became part of the Snap family over 5 years ago, with a shared mission to empower people to express themselves. Today, over 1 billion Bitmoji avatars have been created. Wherever people want to show digitally, their Bitmoji can too, from messaging to games and other apps. Snapchatters love to stand out from the crowd with their own unique style, and we know they like to update their digital outfits to suit the occasion. We've been partnering closely with iconic brands to bring their styles to our community. We launched the Nike collection late last year, and people tried on Nike products on their Bitmoji avatars more than 2 billion times in just 2 months. Today, we're launching an unlockable fashion platform. So partners can drop limited edition fashion items just for Bitmoji. Those who registered for today can grab this digital Snap Partner Summit hoodie, which was cocreated with New York-based brand, Public School. More drops from partners will roll out in the coming months. On Snapchat, the shopping experience is personal, accessible and fun with friends. Through AR, it's possible to shop and explore clothing accessories, beauty products and home goods and our community can't get enough. Since January of last year, more than 250 million Snapchatters have engaged with AR shopping lenses, more than 5 billion times. They also ranked Snapchat the #1 platform for sharing shopping moments. From large retailers to start-ups, our shopping capabilities can transform businesses of all sizes. Studies show that AR-guided purchases lead to a 25% decrease in returns and interacting with products in AR have a 94% higher conversion rate. From handbags to home goods, we continue to invest in platform capabilities to support new product categories and make them incredibly realistic, like with glasses. Zenni Optical's AR lenses have been tried on over 60 million times by Snapchatters. Lenses that used our TrueSize technology drove a 42% higher return on ad spend compared to Lenses without. For products like eyewear, finding the perfect fit is essential. Today, we're introducing several new technologies to advance the way merchants bring products to their customers. We started by making it faster and easier for businesses to build augmented reality shopping experiences. Using the Snap 3D Asset Manager, brands can request, manage and optimize 3D models for any product in their catalog. From there, a simple web interface makes it easy for brands to select their product SKUs and create shopping Lenses using their 3D assets. This can be done in seconds and at no additional cost. We're also reimagining the Snapchatters Try On experience. For the first time, you can try on a new outfit without having to change your clothes. Start by taking a few full body photos and whatever you're wearing. Then our computer vision technology does the rest. Applying the product image onto your photo instantly as if you're wearing the garment. Take a Snap and share with your friends to get their opinion. Ultimately, we're going from this looks good to this is good on me. This new experience isn't just benefiting Snapchatters. It's revolutionary for businesses. We know that for apparel retailers, creating 3D clothing assets, no matter how simple the workflow can be challenging and expensive. That's why we're introducing a new technology specifically for apparel that eliminates the need for 3D assets altogether. Now retailers can leverage product images they already have in their catalogs. Using advanced AI, we segment the garment in their model photography and prepare for AR Try On Lenses, saving weeks of time, effort and money. We've also been working on a brand-new destination that brings together the best of AR fashion and Try On for creators, retailers and fashion brands. It's called Dress Up. Available just one tap away from the camera or via Lens Explorer, Dress Up invites people to browse, discover and share new looks from around the world. Snapchatters can easily return to the products they love and update their shopping preferences in Profile settings. Finally, we're offering our commerce partners a new opportunity to bring the best of Snap's camera for AR Try On right to their own apps and sites with Camera Kit for AR Shopping. Retailers and brands can now transform the shopping experience for their audience by integrating our SDK, distributing digital try on experiences everywhere their customers are. Shopping Lenses are integrated seamlessly into product detail pages. Today, Camera Kit for AR Shopping works across Android and iOS and will soon work on websites, too. Puma is our first global brand partner to use this technology, bringing AR footwear Try On to their brand-new mobile app. Shoppers can digitally try on Puma sneakers directly within the app powered by Snap's Camera Kit. From browsing to check out, let's take a look at shopping's evolution through the Snap Camera. [Presentation]

While the camera is already transforming the shopping experience of today, the opportunity for augmented reality to revolutionize the digital fashion economy is just getting started. DressX, an emerging leader in digital fashion, uses Camera Kit to power AR Try On for their community. Where DressX app users try on AR looks 22 times per day on average and 75% of users engage with AR daily. Camera Kit partners can also extend the lenses they create into Snapchat, reaching an even wider audience. We're making shopping on and off Snapchat incredibly personal, accessible and fun. We can't wait for people everywhere to try these new experiences on for size. Next, I'll welcome Ben to share how our partners are evolving the way people experience everything from concerts and football games to a day at the museum, all powered by Snap AR.

Every day, people use Snapchat for so much more than just sharing photos and videos. Our camera has become a powerful platform for creativity, exploration and learning. People want to share everyday moment in the moment. So we partnered with Google to put our camera on the lock screen of their latest phone, the Google Pixel 6. With a simple tap, it's the fastest way to take a snap. Our camera has evolved into an augmented reality platform powering the creativity of our community and businesses. We've deeply invested in augmented reality because we believe it will heighten the human experience and enhance the things we're passionate about, the places we love and the experiences we share. Our partners are integrating our AR technology, bringing new and unique dimension to the spaces and places their customers visit. With Snap AR, museums can redefine the way visitors experience their exhibits. At the Bass Museum in Miami, Snap AR brought Alex Israel's portraits into a new dimension. And our ongoing collaboration with the Los Angeles County Museum of Art called "Monumental Perspectives," turns the City of Los Angeles into an AR experience commemorating local history. A new Lens designed by Judy Baca, "The River Once Ran" explores the restoration of the L.A. River and the preservation of the great wall monument. LACMA's recent exhibit, Artists Inspired by Music: Interscope Reimagined," featured works from artists like Damien Hirst, who was inspired by Eminem's album covers. The Snapchat camera brought the work to life in an entirely new way through sight and sound. We also believe AR can transform in-person events all over the world. ComplexCon was reinvented with a gamified AR treasure hunt featuring exclusive merch drops from brands like Bathing Ape. Visitors could shop for the latest streetwear through a virtual portal and unlock a Lens to show off their new kicks to friends. Using our technology, Walt Disney World Resort created a magical new experience for their guests. Park visitors can meet their favorite characters and see attractions and iconic places like the Hollywood Tower Hotel and Star Wars Galaxy's Edge come to life using the My Disney Experience app. To celebrate the new Obi-Wan Kenobi series coming soon to Disney+, guests can choose the Dark Side of the Force and become an inquisitor. We're also thrilled to share that AR experiences will be coming soon to Disneyland Resort in California. We look forward to sharing more soon. We're also working on Lenses that enable large groups of people to share and interact together at events. At Super Bowl 56 right here in Los Angeles, Snap AR heightened the game day experience for fans no matter where they were watching. Verizon launched the first-ever 5G Connected Lens. It offered thousands of fans the ability to simultaneously compete to take control of a giant digital Airship hovering above the field. Frito-Lay turned to Snap to transform Flamin' Hot Doritos and Cheetos into a bite-size streaming platform for the premier of Megan Thee Stallion's new music video. And the National Football League integrated Camera Kit into the NFL OnePass app. They made it possible to celebrate AR with the Lombardi Trophy or try on an official jersey. The NFL also brought their national Super Bowl commercial, "Bring the House Down" to life through a Snapchat Lens. Players like Justin Jefferson, D.K. Metcalf, and Rob Gronkowski broke through phones and TVs into living rooms across the U.S. in augmented reality. For years, video screens have been a canvas for visual expression at concerts and festivals around the world. They help artists tell their stories and bring music to life. We believe Snap AR offers artists an incredible new creative tool that will change the way fans experience their performances. Today, we're excited to announce a new multiyear partnership with Live Nation that will elevate performances beyond stages and screens creating a deeper connection between artists and fans through custom-built immersive AR only available on Snapchat. From Lollapalooza in Chicago and Wireless Festival in London to Rolling Loud in Miami and The Governors Ball in New York, festivals will be enhanced through Snap AR. Electric Daisy Carnival, who helped us create the first, "Our Story" 8 years ago is using our augmented reality technology so that fans can experience festivals through a new lens. Festival goers will be able to experience live music like never before, starting at the upcoming EDC in May. [Presentation]

We're excited to see how artists bring their musical performances into a new dimension. There's much more to come from Live Nation and all of our amazing partners across Snap's platforms. Will joins us next to share more on how developers are bringing creative experiences to our community across Games and Minis.

Through Snap Kit Games and Minis, developers have the opportunity to build for our community to help them play, talk and share. Since we launched that game 3 years ago, our partners have built unique real-time multiplayer experiences that turn close friends into worthy competitors. With our platform, Snapchatters on any device can jump into seamlessly play with all of their friends without having to persuade them to install something new. For developers, this means they can instantly reach our entire global community and build their businesses. Already, more than 300 million Snapchatters have played Snap games. And more than 1/3 of our current gaming partners have made over $1 million in revenue. So it's no surprise that they keep building new games for our community. Take Voodoo. Their first 5 games reached more than 80 million Snapchatters. And this year, they've committed to building 20 more and they're not alone. Mojiworks cooked up their first breakout hit Ready Chef Go! and had Snapchatters eating it up. Then last year, they struck gold again, bringing the fun of trivia night to their latest game, Trivia Party. Next year, Mojiworks is going all in on games for the Snapchat generation with a third game to play on the way. Developer Moonfrog also saw worldwide success with their game, Ludo Club. What started as a popular pastime game in India is now a beloved game played by more than 30 million Snapchatters globally. On Snapchat, our gaming partners are finding success using our Minis platform to instantly reach people around the world. Beyond games, our Minis platform lets developers build amazing experiences for our community, whether it's shopping with friends or even registering to vote. Let's take a look at some of the latest ways our partners have enhanced their Minis. This year, partners, big and small, doubled down on new features and AR integration like Dynamic Lenses. These continued investments from our partners are helping Snapchatters better stay up to date on their favorite shows, learn about investing and much more. Our virtual greeting card partner, Givingli, even introduced a second Mini, helping Snapchatters not only share cards at moments that count, but actually purchase gifts for their friends. Gifts by Givingli is a powerful e-commerce platform, connecting Snapchatters to some of the world's most popular brands like Starbucks, Nordstrom, Nike and Xbox. Like most things, digital experiences are better when together with friends. We and our partners want to provide Snapchatters enhanced social experiences that incorporate their friends without infringing on individual privacy. So for years, our team has been working on a new framework that enables partners to incorporate users' friends and preferences into their Mini without revealing the underlying social data. It's called the Minis Private Component System. Let me show you how it works. First, developers code Minis using HTML5. And now with our new private component system, developers can add designated social elements, like places to leave reviews, recommendations and more using a special templating system. Next, our partners pass their work through Snap's code compiler that creates a secure sandbox environment around each designated social element of their Mini. Finally, when a Snapchatter goes to launch the mini, Snap's secured database populates the social elements right as the interface is rendered on the screen. Thanks to this innovative new system, the friendship data is only visible to Snapchatters and never gets passed through to third parties. This means that Snapchatters get the benefit of a personalized Mini and developers can harness the power of shared experiences without the hassles, risks and responsibilities of managing their communities' friend graphs. Let's take a look at this in practice. Last year, HBO Max launched a Mini for Snapchatters to tune into free episodes of their favorite titles. Now with the new Private Components enabled experience, Snapchatters can find shows they love even faster with reviews and recommendations from their closest friends. For example, last week, I used the Mini to try and find something new to watch. After seeing Ben was a fan of the new Gossip Girl, I decided to take the plunge and just like that, I was hooked. While this experience seems rather conventional, this is Snapchat's new system at work. This is just the start of what the Minis private component system can do. We've built Snap's values right into our developer platform from Games and Minis to the camera so partners can scale their experiences safely and help keep real friendship going strong. Next up, Brooke will share how we're able to meet the needs of content creators with our suite of creative tools, programs and of course, the Snapchat Camera.

Content creators play a critical role on Snapchat, sharing their perspectives and entertaining our global community. Snapchat has tools and support for all kinds of content creators, whether you're just getting started or you're a professional creator. Posting to stories or sharing on Spotlight are easy ways to begin the creator journey and build a massive audience. Discover, our curated content platform offers the opportunity to establish creators to syndicate a show or even start in a Snap Originals. Whether you're sharing to Stories, Spotlight or Discover, there is an audience for whatever you're inspired to make. Fans can immerse themselves across these platforms in the world of their favorite creators from their morning coffee order to their take on the latest trend or even a weekly original show. It's exciting to see creators grow their business on our platform. More than 25 Spotlight creators have syndicated shows on Discover, which were collectively watched by over 155 million Snapchatters in the second half of last year. In addition to sharing shows and stories revenue, we enable creators to monetize subscribers via gifting and our Creator Marketplace helps them connect with brands to make independent deals. We're committed to further democratizing creativity and offering meaningful rewards, distributing millions every month to eligible Snapchatters to create the top-performing Spotlight Snaps. These offerings combined have helped creators like Mia Finney who reached an audience of over 40 million Snapchatters on Spotlight in just 3 months, generate 6 figures from Snapchat last year. In the U.S., we've recently launched Spotlight Challenges, which offer eligible Snapchatters the chance to win cash prizes for creating the best Spotlight Snaps using specific Lenses, Sound or #Topics. Our Kindness Challenge hosted by Kim Kardashian and Kris Jenner, prompted Snapchatters to surprise a loved one with a compliment or random act of kindness for their case to win a share of $100,000. In the coming months, we'll be rolling out Spotlight Challenges to additional countries, so even more Snapchatters will be able to get in on the fun. We're continuing to invest in creators globally. The number of Snap stars in France has nearly doubled over the past year, and now we have thousands across the Middle East and India. Our new Creator Hub is a go-through destination where aspiring and professional creators are learning how to stand out on Snapchat. Start your journey by setting up a public profile and building a content strategy, then get advanced tips, like how to use the Timeline feature to edit together multiple Snaps or understand audience analytics. Lenses and creative tools help make videos pop on Snapchat and anywhere else they're shared. And today, we're making it even easier to create videos that stand out. Let's check out our new Director Mode. [Presentation]

In the coming months, Director Mode will roll out to iOS, followed by Android later this year. Just look for the Director Mode icon in the camera tool bar or tap the Create Button in Spotlight to get started. With that, let's welcome Evan back for one last thing.

We first created Snapchat as a new way to use the camera for self-expression and communication. From Lenses to Spectacles, there are so many ways to share your perspective. Today, we're taking the power and the magic of the Snap camera, the spontaneity, the joy, and the freedom to new heights. A new camera to match the limitless potential of your imagination. Meet Pixy, the world's friendliest flying camera. It's a pocket-sized free flying sidekick for adventures, big and small. Everything you need to capture the spontaneity and fun at the moment from new perspectives is right in the palm of your hands. With the simple tap of a button, Pixy takes flight and joins you on your journey. With 4 preset flight paths, Pixy floats, orbits and follows wherever you lead. Pixy is ready to fly at a moment's notice. There are no controllers. There's no complex setup. Simply set a flight path and let Pixy take it from there, floating above you as they capture photos and videos. And it knows when and where to return, landing gently in the palm of your hands, wirelessly transfer your aerial Snaps to memories after the flight and take your editing studio on the go, apply assess like speed ramps, jump cuts and even 3D bounce to the moments you capture. Then add sounds and lenses before sharing on Stories, Spotlight or any other platform. Pixy is the perfect new addition to your creative toolbox, helping capture new angles and making every moment fly. [Presentation]

Pixy is available for purchase today in the United States and France while supplies last. Search for Pixy in the Snapchat app or head to pixy.com to learn more. We can't wait to see what you will create on your next flight. We're so grateful for the opportunity to collaborate with such amazing partners, developers and creators and we look forward to continuing this incredible journey together. Thank you so much for joining us today.