Snap Inc. (SNAP) Earnings Call Transcript & Summary

Welcome, everybody. We are so excited to kick off the Snap Partner Summit. Thank you so much for joining us today. How is everyone doing? This year, we're doing things a little bit differently. We brought together our Snap Partner Summit with Lens Fest. And Lens Fest is our annual get-together for Lens developers, creators and hobbyists. And we're so excited. For the first time, we've got everybody here together today. We feel so fortunate to be able to serve over 850 million people all around the world, including more than 100 million Snapchatters who have joined us since the last Partner Summit. So welcome. Thank you. We built Snapchat differently to bring people together with their friends and family, and independent research shows that Snapchat improves well-being and strengthens relationships. So we decided to do a little bit of our own research this year, and we searched far and wide. We looked all over for Snapchatters with the longest streaks to hear how Snapchat has helped support their relationships with one another. Let's take a look. [Presentation]

So we have some very special guests with us today. Where is the Crabtree family? Thank you so much for joining us all the way from Missouri. There they are on the big screen. Today marks 2,886 days that they've been together, talking, staying in touch on Snapchat. And Mrs. Crabtree, a very happy belated birthday to you. So thank you so much for being here. Now we know we have a big responsibility to our community, and we are determined to make a positive impact. That's why we're partnering with Common Sense Media to develop a first-of-its-kind program that educates families about online harms. And with Safe and Sound Schools, we're providing educators with toolkits that help support the safety and well-being of students online. We are so grateful for the opportunity to work together with all of you to serve the Snapchat community. Thank you so much. Now let's get this show on the road. The team has been working so hard. We've got a ton of great stuff to share with all of you today. So I'd like to introduce you to Ceci, our Head of Product, to talk about what's new on Snapchat.

Thank you so much, Evan. Snapchat is built for relationships, and that's why we opened the camera so you can instantly capture a Snap and share it with your friends to kick start a chat. That's why the Snap Map is focused on your friends and the places they love. That's why Stories and Spotlight are designed to spark conversations and community. But when we take a step back, there are really 3 things we all use our phones for every day: communicating with friends and family, taking pictures, and entertainment. So that's why we recently began testing Simple Snapchat, a new simpler version of Snapchat organized around these 3 things: chatting, snapping and watching entertaining videos. With this streamlined design, as always, you'll open the camera to take a Snap. On the left is Chat, but now it's Stories at the top of conversations because sharing and replying to stories is part of how we all communicate. And with Snap Map now accessible right here, it's easy to translate conversations into real-world plans. And on the right, we've centralized entertainment into a simplified viewing experience that combines Stories and Spotlight videos in one place based on your interests. We're testing now with a select group of Snapchatters around the world and look forward to sharing more as we continue to evolve this new Snapchat experience. So now let's take an even closer look at how it works. So Snapchat has always opened to the camera, so that the first thing you see is your world, so you can easily take and share a Snap with friends. Snapping changed the way people communicate by making it easy to talk with pictures. Instead of texting my friends, I'm pregnant, I Snap them. And when they responded, they said it all with a Lens, the augmented reality technology we pioneered 9 years ago that transformed the way we all express ourselves visually. And now with AI, we are revolutionizing the way Snapchatters express themselves once again. Just select an AI-powered Lens on the carousel and tap to go back in time. To relive the '90s, to live out your pro tennis dream, or to get a glimpse of the future, with this new Grandparents Lens, launching globally today. In the future, I guess, I'm a host of The Great British Bake Off. Even just a few months ago, you had to upload a bunch of selfies and wait minutes to get an AI image that looks like you. But now, thanks to our breakthrough One Snap technology, Snapchatters can generate an AI Snap of themselves in seconds. It's AI, made simple and fun. And you can do it with friends, too. So for example, with the Our Kid Lens that uses AI to combine your features, my husband, Henry, and I got a sneak preview of who we're expecting to join our family any day now. Cute. And AI has been helping me in other ways, too. I can now Snap My AI to learn more about this funky flower. And we're not just bringing AI to the camera, we're bringing it to Memories, too. Snapchatters save over 900 million Snaps every day to remember their favorite moments. And now with a swipe up from the camera, you can view Memories in full screen and the collages and video mash-ups of your favorites. AI will even act as a personal creative director, adding captions and Lenses to Memories, giving you a whole new reason to share. And you'll also see totally new AI Snaps inspired by your friendships and special moments, like this one I sent to my friend and colleague, Catarina, to say happy birthday. These special AI Snaps rely on a brand new feature called My Selfie that let Snapchatters create and manage their Snap AI identity. After onboarding their selfies, Snapchatters can see themselves in AI-generated images. And with easy toggles, they can choose to see themselves with friends, too. And today, we are also introducing a new AI video generation tool for creators available from the web, to start. Select creators in our early beta can make engaging videos with AI from a simple prompt. It's incredible. And we know it's important for our community to be informed when AI has been used to generate content. So we use icons and Context Cards to let you know when a Snap is made with Snap AI. But now let's take a closer look at how Snapchatters are using AI to have fun with their friends. [Presentation]

AI is changing how we communicate with our friends. And communication is, of course, what Snapchat is all about. So let's head over to the Chat tab, just to the left of the camera, to see what else is new. So as I mentioned, Stories are now right above my conversations with friends. That's because Stories let me see what my friends and favorite creators are up to and reply to what they've shared. As you can see, you can now also jump into the Snap Map from here, making it easy to go from talking about plans to making them happen in the real world. 350 million Snapchatters visit the map every month. And soon, with Promoted Places on the map, it will be easier than ever to find great spots to visit friends. When you're posting, chatting or making plans with friends, we know that you need to feel comfortable and safe expressing yourself. That's why by default, we require you to be friends with someone or already have them in your contact book before you can communicate back and forth. And if you're under 18, we will warn you to block or remove someone right there in chat if we predict you've added someone who may not be your real friend. And while location sharing is always off by default, until you choose which friends to share it with, there's no option to ever share your location with people you're not friends with. This all helps our community be themselves in every way across Snapchat, including there, Bitmoji. With our latest 3D upgrades, Bitmojis are even more unique to you. I love how Bitmoji stickers really capture my expression in my conversations with friends. And with the new Bitmoji friendship poses, I can also see myself with a friend hanging out on our friendship profile. So here's me and product designer, [ Soreya ], work our posing together and wearing the latest Bitmoji fashion. And for a night out on the town, we're sporting handbags from our upcoming partnership with Prada and Miu Miu. Or we can keep it casual with these new Snap Yellow Crocs that just launched today. And thanks to Snapchat+, friends can even see a little realistic Bitmoji of my dog, Merlin, appear by my side when I'm typing as well. Even beyond Bitmoji, everything about my chats is designed to be unique to my friendships. So take, for instance, my conversation with my best friend, Heather. Our wallpaper is customized with a photo from a recent trip to the beach, and the localized time zone let's me know it's getting late for her in London. But sometimes, there is no replacement for getting a call, to hear someone's voice, and see what they're up to. So we've spent the last year investing in our voice and video calling experiences. You can now keep chatting while on a call and leave a Snap Mail for when your friend doesn't pick up and you still want to leave a message with a Snap. All together, we think these features make Snapchat the most authentic way to communicate with friends and family. And when we want to share our creativity even further, Stories and Spotlight videos give our community the most authentic way to express themselves to a broader audience. So now let's head over to the right of the camera to where we watch content. We have always done content differently. For example, public-created videos are moderated before they reach a large audience, and we take a privacy-first approach. Friends can't see the videos you favorite-d, and you have control over who can see the content that you create. And for parents of Snapchatters under 18, we also offer content controls and additional tools through our Family Center that provide insight into how their teen is using the service. With this new simpler Snapchat, when you swipe to the For You tab, you will see Stories and Spotlight videos together in one place, full screen and recommended based on your interests. This new viewing experience is powered by our first-ever unified recommendation system that makes for our most personalized experience yet. Videos from friends are prioritized, so you'll never miss your friend's outfit of the day. Recommendations are based on what you love sharing to your community, what's trending among your circle and, of course, what you love to watch. So for example, my Snapchat knows I'm always looking for new outdoor activities to try around L.A. Across every screen, I am so excited about how this new version of Snapchat helps our community focus on what matters most: relationships, chatting with friends and family, snapping them through the camera, and watching and sharing Stories and Spotlight videos together. I'll now pass it to Brooke to talk about how we are supporting creators on Snapchat. Thank you.

Relationships are at the core of every experience on Snapchat. So naturally, relationships are at the heart of our content experience, whether you're the one making Snaps or watching videos created by the community. Snapchat encourages people to strike up a conversation, and it's inspiring to see our community feel so comfortable sharing their lives. Over the last year, over 1 billion Snaps are shared publicly every month by our community, creators and media partners. That's a lot of creativity. That's why we're so excited that Simple Snapchat makes it even easier to explore and discover the most relevant videos from across Snapchat. See Olympic gymnast Suni Lee sharing her life outside of training. Right after that, take in the latest breaking news from The Wall Street Journal, and then a glimpse at life in Sydney. It's easy to create, watch and chat about it all on Snapchat, making you feel closer to the world around you and closer to the people you care about most. Snapchat is where creators can be themselves, and our creator community has grown tremendously this year. Creators in countries all around the world are showing off their talents in entertaining videos and sharing a candid look at a day in their lives. Over the last year, creators garnered trillions of views on the Snaps and their Stories. And now more than 500 million people watch Spotlight videos. Creators constantly tell us that they feel most connected to their fans on Snapchat. Opening to the camera keeps them in the moment, encouraging them to share an authentic look at a day in their lives and driving a culture of realness. And our community tells us that watching videos from creators on Snapchat feels personal. We're thrilled to make it even easier to foster those important relationships and engage with their friends and fans. To start, we've simplified the profile design so that Snapchatters aged 16 and older have the option to easily toggle between their personal and public accounts. If you want to connect with real friends, personal. And if you choose to reach a wider audience, public. Snapchatters have control over their information and for Snapchatters aged 16 and 17, the highest privacy and safety settings are on by default. So many of Gen Z aspire to have a career in content creation, and it's never been easier to kick off your creator journey on Snapchat. In fact, the number of creators posting publicly has more than tripled over the past year. Just as Brooke Monk, who started using Snapchat at 16 to chat with friends, then began using her public profile to post about life and love, and now has over 3.5 million followers on Snapchat. And for established creators, collabs just got a whole lot easier. Now when a fellow creator, fan or brand mentions you in a public story, you can repost it for your whole audience to see. Simply go to the Activity Center from your profile and tap Add To Story. That's it. Pin your favorite Snaps to the top of your profile so that new viewers can immediately get a sense of the type of videos you create and then follow for more. Creators can also share their content across services. Looking for a little inspiration, templates make it even easier to create videos from your memories and camera roll. Stay in the moment and post a recap of your once-in-a-lifetime vacation when you're ready. And they all come sound tracked with music from some of the top artists in the world as well as artists on the rise whose songs may become your new favorite. Every day, there are nearly 15 billion interactions between creators and their fans on Snapchat. Creator Julia Raleigh put it best when she said, "Community on Snapchat is a deep connection. It's not just a look and a swipe." That's because the community creators are able to build on Snapchat are made up of real people who care about your journey. The Replies feature is one of creators' most loved ways to engage with fans and create a close community. This enables Snapchatters to reply directly to a creator's Snap. The creator can then turn that message into a photo or video response. Creators have control over the types of messages they receive to help them keep interactions respectful and fun. Rapper DDG is sharing an intimate look at life as a new dad. Fans love his use of the Replies feature to answer their questions. Just in the first half of this year, DDG garnered over 3 billion views on the Snaps and his story. We are constantly rolling out new features to scale these conversations. Have friends visiting from out of town and not sure what to do? Add our question sticker to a Snap to prompt story viewers to send you suggestions, then share a look at the awesome day you planned. By the way, I recommend a nice stroll down Venice Boardwalk. Our suite of editing and creative tools have helped to support an ecosystem, where there are a lot of opportunities to find success. Emerging artists have had tens of millions of videos created with their music on Snapchat via the Sounds tool. This has fueled discovery as they build a fan base. For example, the Snaps created with global Punjabi artist, Diljit Dosanjh's song, Hass Hass, have over 500 million views globally. And over 130 million Spotlight videos were created this year, featuring Lenses made by our talented community of Lens creators, proving that there is an audience for all of your talents. It's inspiring to see creators of all kinds get rewarded for their Stories and Spotlight videos, all while being themselves. Gianna Christine is a creator on the rise known for sharing a day in her life as she navigates New York City. Her community can't get enough with Snapchatters frequently spending more than 10 minutes watching her Stories, and she's been able to earn over 6 figures in our Stories revenue share program. Just Riadh is one of the most popular creators in France. Since 2018, he's been snapping his daily life in Paris, using rewards from Snapchat to support his travels around the world, bringing his big sense of humor along the way. And Nutshell is one of hundreds of creators who received 6 figures from Snapchat over the last year. His short-form animated comedy videos have been viewed over 75 million times in the past 3 months. We are excited that now, creators have more opportunities to build their business on Snapchat by partnering with brands in a way that feels authentic to their voice. Our Snap Star Collab Studio accelerates partnerships between creators and brands. And we're making it easier for professional creators to get discovered. Through our preferred partners and new self-serve tools, creators can choose to show off their engagement and demographic data to brands. And soon, they'll be able to share this information directly with any advertiser on Snapchat. Let's see what some of our top creators have to say about their experience on Snapchat. [Presentation]

Where's my creators? Oh, yes. Make some noise. Let me hear you. There we go. That's what I like. We're proud that each year, we pay out hundreds of millions of dollars to our creator community, rewarding them for sharing their talents and celebrating that we're all unique. Next, Sophia will share how partners are using AR and creative tools to transform the way our community experiences the world. Thank you.

For years, we've watched our partners push the boundaries of what's possible with augmented reality. They've helped us experience the things we care about in new ways, from art and science to sports, music, beauty and shopping, and everything in between. And what started with self-expression and iconic Lenses like the puppy dog or vomiting rainbow has evolved to make those interests more shareable and immersive and moments with friends become even more memorable. Today, over 300 million Snapchatters engage with augmented reality every day on average. Partners are inspiring people to use the Snapchat camera to see the world in a whole new way and helping them bond through immersive experiences because relationships are stronger when we share passions together, both on Snapchat and in the real world. Some of my favorite memories are days exploring museums with friends, and it doesn't get more iconic than The Louvre in Paris, so I was ecstatic when we partnered with them to unveil Egypt Augmented. This series of AR experiences reveals the materials, colors and decorations of artwork from centuries ago. Visitors can simply scan a QR code to see these artworks resurrected from the bare stone, all on Snapchat. Or if you're visiting the de Young Museum, take a look at how technology transforms the way we experience fashion and culture. Our AR Mirrors invite visitors to try on couture, like [ Cassie Guang ], featured in their exhibit, Fashioning San Francisco: A Century of Style. And Snap AR is revolutionizing the way students learn. Our partnership with Inspirit integrated custom-built Lenses directly into the middle school STEM curriculum. From an initial pilot, we found that 85% of students feel that AR made their lessons easier to remember. Now we're expanding our work together with 25 additional Lenses to inspire students nationwide. Snapchat is bringing sports fans closer to the action, whether they're at home or in the stadium. Over 170 million people watch sports on Snapchat. And with new creative tools, fandom is reaching a whole new level. Showing support for your favorite team is a huge part of being a fan. To date, Snapchatters have tried on Bitmoji team gear over 1 billion times. For the 2024 Summer Olympic Games, we united Snapchatters through AR. NBCUniversal offered a suite of Lenses that lets friends share their collective fandom for Team USA, learn about their favorite athletes, and predict what your Olympic event may be. I'm supposed to be a gymnastics star. During the first day of the games, Snapchatters in the U.S. and France engaged with Lenses 2 billion times. And entire stadiums full of fans are finding camaraderie as they turn into cartoon characters, don funny hats, and shed playful AR tears together when their team comes up short. During Super Bowl 58 this year, the NFL took over the jumbotron with Snapchat Cam, powered by Camera Kit technology, which lets partners bring their AR into their own applications, websites and even out in the real world. We took custom Lenses on the crowd, so fans of the stadium could really Viva Las Vegas. We're thrilled that we've partnered to bring Snapchat Cam to more than 50 venues, teams, artists and broadcast partners like the Indiana Fever at Gainbridge Fieldhouse and the New York Knicks at Madison Square Garden. We can't wait to make big events more memorable for the millions of attendees who visit these sites every year. Partners have used Snapchat Cam to reinvigorate the traditional broadcast to create must-see TV. ESPN and MTV have brought the magic of Lenses to their live coverage and shows. And just when you thought Mexican comedian Capi Perez couldn't get any funnier, he used Lenses during his sketch comedy show, La Resolana, to make viewers burst out laughing. Look, there's nothing like blasting your favorite song, whether or not you can actually keep up with the lyrics. Our lip synching Lenses are a hit and have been shared more than 100 million times. We just launched a Lens with Eminem for his new song, Fuel. And soon, this experience will support thousands of tracks from Snapchat Sounds library. You can rock out in real time or bring your memories to life, all with the confidence you'll never miss a beat. Snapchat's Lenses are also helping our community express themselves through beauty. NYX Professional Makeup recently introduced NYX Beauty Bestie, which uses AR to recommend pro-quality makeup looks that are easy to share with your friends on Snap. Today, we're excited to introduce an advanced version of this Lens that uses generative AI to serve up AR looks that are tailored to your taste. It even helps you find a color pallet that best suits your skin tone and features. Partners are using our technology to create experiences beyond our imagination. And it's incredible to see how they're making Snapchatters' everyday lives better, both in app and out in the real world. Next, over to Bobby to share more about how the Snap AR platform powers new possibilities for amazing community of Lens creators, developers and teams.

Thanks, Sophia. We are so excited about what our partners are building with Snap AR. Because of their work, Lenses transform our everyday lives. They teach us ancient history and new skills. They expand how we see ourselves and the world, and they give us new ways to engage with people and places we love. More than 375,000 AR creators, developers and teams from nearly every country in the world have built over 4 million Lenses. And Snapchatters love them. In just the last year, Snapchatters have engaged with Lenses made by our AR creator community more than 4.5 trillion times. Each Lens is an expression of creativity, an endeavor by someone to translate their imagination into a real-time interactive experience for others to enjoy. And our goal here at Snap is to continuously expand creative possibilities with new technology and powerful tools. We make them available through Lens Studio, our AR authoring tool. It's a versatile platform for anyone, from hobbyists to professional development teams, to build and publish Lenses to Snapchat, your mobile and web applications and Spectacles. A few months ago, we launched Lens Studio 5.0 with Gen AI Suite. We completely rebuilt it from the ground up to give our community a modern foundation to build AR for nearly anywhere. Let me show you some of my favorite parts. Now reopening your project loads up to 20x faster, so you can jump right back into your work. Teams can collaborate much more effectively with version control tools like Git. This means that designers and developers can work together on even more complex and robust experiences. We also introduced plug-ins. They're similar to extensions on a web browser, and they help developers customize their workflows. Take the Figma import plug-in, which lets creators bring their Figma designs directly into Lens Studio, seamlessly adding 2D elements into a 3D scene. Or developers can build their own plug-ins to make new tools for themselves and the broader Lens Studio community. Plug-ins can also add new creative capabilities, like our Gen AI Suite. It lets anyone make Lenses like some of our biggest hits. We handle all the complexity of working with machine learning models like the data processing, training and optimization. So if you haven't trained your own ML model before, it does not get any easier with this. Gen AI Suite empowers creators to transform people, whole camera scenes, and add newly imagined 3D objects into your Lenses. Creators have already built some amazing experiences with these new tools. We collaborated with acclaimed portrait artist, Jonathan Yeo, who has painted celebrated figures, including Malala Yousafzai, Sir David Attenborough and King Charles III, to create a series of Lenses powered by machine learning that let Snapchatters see themselves in his unique artistic style. Building on the Lens Studio 5.0 foundation, today, we're announcing a ton of new capabilities. I hope you're ready. Bitmoji is one of the most loved avatars in the world. Over 2.7 billion Bitmoji avatars have been created globally. People have spent time carefully making them a true reflection of themselves. So we brought Bitmoji into Lens Studio, letting developers build fun and personalized experiences that Snapchatters and their friends immediately connect with. You can celebrate your friendships, take the pressure off sharing your new high score or dance to your favorite song. Lenses built with Bitmoji have already been shared by Snapchatters over 40 million times. Today, we're introducing new generative animation tooling, so creators can do even more with Bitmoji. Choose from hundreds of high-quality animations from our library, then automatically blend animations together to make the movement look smooth. Look at how this walking animation seamlessly flows into the dance steps. Plus, Bitmoji now appear true to life, no matter what they're wearing. For the creators out there, that means no more clipping. And soon, if you have a specific animation in mind, making your own will be a whole lot easier. Simply describe the animation you'd like to create and see it come to life in just a few seconds. All of this is shaping a new era of creative experiences with Bitmoji. Meanwhile, some games are going viral on Snapchat. Millions of Snapchatters are comparing scores with their friends to see who's the best fruit bouncer and the most skilled pizza packer. So we're adding a new feature that creators have been requesting for a long time, leaderboards. Now creators can quickly add fun friendly competition to any Lens, like Nike Victory Mode, which challenged Snapchatters across France to play AR games, earn points and track their ranking on a leaderboard to see who took home the top spot for their country. Snapchatters love to engage with friends' Stories through Lenses, so we're expanding this prompt-and-response format to include images and other information. Now creators can make asynchronous games, visual polls and even shared [ meme billers ]. This is all the very best of Snapchat brought to Lenses, and it's all in service of strengthening relationships. We handle these APIs with privacy in mind. In Lens Studio, creators can choose from preset options for what kinds of information a Lens can reference, like who you're snapping right now, without ever seeing your personal information. So Snapchatters have peace of mind and Lens creators can focus on building creative social experiences for friends to share. The creators behind engaging Lenses are earning rewards. Creators from around the world have received rewards, ranging from a few hundred to tens of thousands of dollars, through our Lens Creator Rewards Program. Earlier this year, we expanded the program, and we're on track to pay out more per month than ever before. For your chance to receive a reward, all it takes is a few simple clicks in the Lens submission flow. Today, we're introducing new tools into the Gen AI Suite that inspire creativity, allowing us to imagine all new kinds of fun. First, Garment Generation creates custom hoodies, sweaters, bomber jackets and more. Just type what you want to see. Head Morph made it easy to create ready-to-use face-tracked 3D models. And now with Body Morph, you can generate full 3D characters, fully rigged and ready for full-body AR. Our 3D asset tool generates new 3D objects from text. It also works with image input because sometimes, it's easier to show, not tell, what you're looking for. Creators have already been able to import 3D renderings of real-world objects like this helmet here. These renderings are called Gaussian splats. They're state-of-the-art and ultrarealistic. And soon, you'll be able to upload a video of nearly any object, and Lens Studio will completely reconstruct with high fidelity and Lens ready. And finally, we know the last play to getting a new Lens in front of millions of Snapchatters is picking the perfect icon. With Icon Generation, we'll give you a number of great options, making your Lens easier for Snapchatters to discover. Hearing all this, you may be brimming with new ideas or looking to get started. Well, imagine if you could dream up something right now and type it into existence. Introducing Easy Lens. Easy Lens builds Lenses for you just by describing what you want to create. It takes just a matter of minutes, and it's super fun to use. It's perfect for quickly trying new ideas or spinning up a spur-of-the-moment experience. And it's helpful, whether it's your first time making a Lens or your hundredth. Here, let's try these. Halloween is coming up. Let's see a few costumes. Easy Lens, make me a cowboy Lens. How about a witch? What about a race car driver? How about a Lens celebrating back to school? There we go. That's perfect. As you can see, anyone can work with Easy Lens to build a wide variety of Lenses. It uses large language models to interface directly with Lens Studio components and built-in Gen AI pipelines, building project files and the scene hierarchy in front of your eyes. It's built to support extensibility from the start, which will allow us to quickly add new capabilities. We're launching in beta with a select few creators starting today. We're pushing Lens technology forward, and now Lenses are capable of a wide range of experiences. They can be real-time, 3D augmented reality, powerful, generative AI transformations, Bitmoji scenes, games and so much more. It's so exciting to see what creators, developers and teams at all levels dream up. Every single Lens is a chance for Snapchatters to express themselves and to connect with the people and places they care about most, and there's a lot more we can do. Please welcome Evan back to the stage.

Thank you, Bobby. We are so excited for you to try out all of the new features that we've announced today like Simple Snapchat that brings you closer than ever before to things you love, like snapping and chatting with friends and watching Stories, or all the new features for creators that Brooke announced that make it easier than ever to connect with your audience and grow your following on Snapchat. And of course, all of the amazing new generative AI tools in Lens Studio that make it simple to build an immersive Lens in just a few text prompts. Now I was going to say we have one more thing. But really, we've got a couple. When we started Snapchat, we wanted something different. And we didn't like the way that social media made us feel. We had a different vision. So we started to build things differently, things like vertical videos. You didn't have to turn your phone sideways to watch full screen, or ephemeral messaging that make conversations feel more natural, like talking face to face. Of course, Stories, with no likes or comments, you can share your perspective without social pressure, and Lenses to empower creativity and self-expression and so much more. And it's working. Over 850 million people use Snapchat, and it just keeps on growing. We're well on our way to over 1 billion people using Snapchat, and we feel like we're just getting started. And that's because we believe technology can be way better than it is today. And despite all of our efforts to improve the way that we use screens, they're still just screens. We can't be bound by screens forever. We need something more natural, more intuitive, something more human, something that brings people together in the real world. So we didn't want to make some new gadget that's totally unfamiliar because the best way to make technology feel more human is to make it a part of something that billions of people already use and wear every single day. No, not virtual reality headsets. I'm talking about glasses. VR headsets, they feel like you've got a laptop taped to your face, and they're isolating. They make people feel motion sick. They're heavy. They're uncomfortable. But AR glasses have see-through Lenses. They allow you to share experiences together with your friends in the real world, and they're lightweight and wearable. But making augmented reality glasses is really hard, and the industry is littered with companies that have tried. We've been working on these for a really long time. Now there's a lot of reasons why it's hard. I don't want to bore you with all the details. But basically, you've got to fit the equivalent of a really powerful computer and a 100-inch screen and a battery, all weighing over 150 pounds, into a pair of glasses weighing just 226 grams. So all of that capability with just 0.3% of the weight. Today, we're introducing the fifth generation of Spectacles and our purpose-built brand-new operating system called Snap OS. Now we're going to start with the tech specs because it is truly amazing how much capability we packed into this device. And I really didn't want to miss the chance to geek out here with all of you. And then we're going to dive into all of the amazing experiences that Spectacles enable. Spectacles are totally stand-alone. So there's no phone required, no puck, no cables, no tether, and Spectacles use see-through Lenses called waveguides, so you stay grounded in the real world. Our waveguides use billions of nano structures that reflect light from miniature projectors that are built into the temple of Spectacles. And this optical engine has been designed and built from the ground up right here at Snap, leveraging our own proprietary technology. So I mentioned a 100-inch HD display just a minute ago. Our 46-degree field of view, with a super sharp 37 pixels per degree, make that possible. And for the very first time in all of human history, we have made transition Lenses cool. So Spectacles have adaptive tint that automatically adjust to your environment. And visuals are vibrant, indoors and outdoors, even in direct sunlight. Spectacles provide more immersive experiences using less power, thanks to 2 Snapdragon processors from Qualcomm. And with a titanium vapor chamber for improved heat dissipation, Spectacles deliver a run time of 45 minutes continuously. We've built all of this amazing hardware to enable truly breathtaking software experiences. Snap OS is a new type of operating system with a natural interface that uses your hands and your voice. So there's no controllers necessary. You've never experienced an operating system like this before. Snap Spatial Engine understands the world around you, powering immersive Lenses that integrate into your natural environment. And an astounding 13 millisecond motion-to-photon latency renders Lenses with incredible accuracy. And it's so easy to use. The main menu is in the palm of your hands. So you can quickly launch Lenses with Lens Explorer. And Lenses on Spectacles are built to be shared. So that means when you're wearing Spectacles together with friends, you can interact together in the same shared experience all grounded in reality. With Spectacles and Snap OS, we're freeing people from being stuck to their screens and empowering people to use technology together with their friends and family out in the real world. And for folks who haven't quite made the transition to Spectacles yet, you can follow along on your phone with Spectator Mode to share the moment. And Spectacles work seamlessly together with your smartphone. So unlike a VR headset, you can actually check your phone while you're wearing Spectacles. And we built a brand-new Spectacles app. So you can use your phone as a custom game controller for Lenses or mirror your phone screen, make it big and bring it along with you for hands-free viewing. So I'm going to show you a couple of examples of how Spectacles are making playing, learning and working together better. Playing is way more fun with Spectacles. We got 4 boys at home, so we've really put Spectacles through their paces. And you can make a huge mess without any cleanup. You bring your imagination to life in an instant with make believe. You can play classic boardgames like chess together on the go anywhere. And with [ Beat Boxer ], you can stay active with your favorite tunes. Learning is much more engaging with Spectacles. Experiential learning, learning by doing is way more fun. Spectacles help people learn together instead of alone in front of a screen. So you can learn how to code by solving fun puzzles, understand anatomy with a life-sized human body, make music with instruments, old and new. And if you're feeling curious about something, you can always ask My AI. And work is becoming much more productive with Spectacles. You can access the Internet with a browser, call a teammate and share your perspective, use Layout to bring all of your project materials together in one space. And you can bring your home office on the road with a nearly infinite desktop so you can get work done anywhere. Now we've thought a lot about how to make Spectacles great for developers. We're developers ourselves. So we know what it feels like to deal with the arbitrary rules and the high developer taxes that platforms demand today. We know how hard it is to build something great, and we want to make it easier. We want to be the most developer-friendly platform in the whole world. So we started with terrific developer tools, and Bobby shared a ton about this earlier today. We've optimized the end-to-end experience of developing and deploying Lens. And Lens Studio makes it easy to push new Lenses to Spectacles in seconds for quick iteration. Spectacles Interaction Kit is a new user interface kit that provides the building blocks to create new Lenses that people will love, without having to start from scratch. And Lens Studio seamlessly supports complex projects with TypeScript and improved version control for team-based development. We've also built SnapML to make it easy for developers to use custom ML models in Lens Studio to track an object and augment bespoke objects. I almost forgot. We want developers on Spectacles to be able to invest in building amazing Lens experiences. So we're launching Spectacles with no developer tax. That's right. No developer tax. We want to build a platform where we can all win together. Now developers and partners are already using Spectacles. So I'm excited to share a few of the things that they've been working on. Soon, Star Wars is coming to Spectacles, thanks to Industrial Light and Magic's Immersive Studio. Wabisabi Games has invented a whole new way to play capture the flag together with your friends. The LEGO Group is launching Bricktacular, an interactive AR game, to unlock endless creativity. That's a very popular one in our house. And Niantic is also bringing some of their fun and immersive experiences to Spectacles, starting with Peridot, a friendly and very unique AR pet. And starting today, you can use Scaniverse splats in Lens Studio to bring real-world objects and scenes directly to your Lens. Now I'd love for you to hear a little bit from some developers who are already building experiences for Spectacles. Take a look. [Presentation]

Now no tech event in 2024 would be complete without an OpenAI partnership. So we worked closely with OpenAI to give developers access to powerful multimodal large language models. So soon, developers can use these tools to easily build Lenses that recognize objects around you and provide more context. So does anyone want to see a live demo? We have been so excited to share these with all of you. So Spectacles are so cool that even the tutorial is fun. Snap OS uses natural interaction, so you don't have to learn anything new. You just interact with digital objects the same way that you interact with physical ones. So if you want to select something, you just reach out and pinch to select. If an object is a bit further away, just hold up your hand until the cursor appears and pinch to select. If you want to move an object, it's easy, just pinch and drag. And to resize an object, use both hands, pinch and release. Now my favorite part of Spectacles is that the main menu is always in the palm of your hand. So just hold out your palm, tap to open a menu, you can save a Lens, exit it or resume. And the settings are on the back of your hand, so you can enter settings and toggle the tint. Can everyone see that? Toggle the tint, and tap again to close. That's it. That's all you need to know to use Spectacles. So does anyone want to see a Lens? All right. Let's see. This one is one of my favorites. It's called Imagine Together. So Imagine Together uses generative AI. So you can think of almost anything in the world and make it in just a couple of seconds. So let's try, imagine a cheeseburger, and imagine a spaceship, imagine a dancing banana. First, the object renders in 2D. Now we're going to wait a couple of seconds for the 3D mesh to render. Let's see. That looks pretty good. So you can resize it. I'm going to just pass this to my friends here in the front row. There you go. I don't know if SpaceX is going to have any competition with this guy. We can put that over there and it's pretty cute. Anyone else who want to make some? Do you have an idea? Imagine a puppy in a top hat. Anything. Don't be shy. Anything else? How about one from that section? Imagine a cupcake with sprinkles. I don't know. But where's the top hat? Anything else? Imagine a cowboy frog. That's pretty cute. That's a good one. We'll give this to the puppy over there. That's awesome. All right. Well, we could do this for hours. But this has been such an important day for us. We've been looking forward to this for so long, so I thought what we would do is try to commemorate it altogether in a Snap. So I'm going to draw a ghost here. Let's see. I've been working on this for 13 years. Okay. That's not bad. All right. Everybody, say Spectacles on the count of 3, one, two, three. I've got a little more good news to share with you. So Spectacles are available today. And they ship tomorrow as part of our developer program for just $99 a month, and that includes Spectacles and Snap support to help you bring your imagination to life. You can learn more at Spectacles.com. And everyone here in the audience, everyone here, you're going to be able to go hands-on with Spectacles today right now after the keynote. But before you all rush out of here to have a try, we wanted to give you a glimpse of how Spectacles are bringing people closer together. [Presentation]

This has been so much fun. Thank you all so much for your incredible partnership. We are so grateful for the opportunity to serve the Snapchat community together with all of you. Here's to a brighter future. Thanks, everybody.