Selected Company Metrics and Financials

FY 2019 FY 2020 FY 2021 Year End

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 2019 2020 2021
(1)
Company Metrics (in Millions)
Monetizable Daily Active Usage (mDAU): Worldwide 134 139 145 152 166 186 187 192 199 206 211 217 152 192 217
QoQ% 6% 4% 5% 5% 9% 12% 1% 3% 4% 3% 3% 3% n/a n/a n/a
YoY% 11% 14% 17% 21% 24% 34% 29% 27% 20% 11% 13% 13% 21% 27% 13%

mDAU: United States 28 29 30 31 33 36 36 37 38 37 37 38 31 37 38

QoQ% 6% 1% 4% 3% 8% 7% 0% 4% 1% -3% 2% 2% n/a n/a n/a
YoY% 8% 10% 13% 15% 17% 24% 20% 21% 13% 3% 4% 2% 15% 21% 2%

mDAU: International 105 110 115 121 133 150 152 155 162 169 174 179 121 155 179
QoQ% 6% 5% 5% 5% 9% 14% 1% 2% 4% 5% 3% 3% n/a n/a n/a
YoY% 12% 15% 18% 22% 26% 37% 32% 28% 22% 12% 15% 15% 22% 28% 15%

Revenue Mix ($ in 000's)

GAAP Revenue (Worldwide) 786,890 841,381 823,717 1,007,341 807,637 683,438 936,233 1,289,041 1,036,018 1,190,427 1,283,817 1,567,220 3,459,329 3,716,349 5,077,482
QoQ% -13% 7% -2% 22% -20% -15% 37% 38% -20% 15% 8% 22% n/a n/a n/a
YoY% 18% 18% 9% 11% 3% -19% 14% 28% 28% 74% 37% 22% 14% 7% 37%
Advertising revenue 679,466 727,123 702,257 884,546 682,192 561,994 808,449 1,154,757 898,840 1,053,411 1,140,504 1,412,937 2,993,392 3,207,392 4,505,692
QoQ% -14% 7% -3% 26% -23% -18% 44% 43% -22% 17% 8% 24% n/a n/a n/a
YoY% 18% 21% 8% 12% 0% -23% 15% 31% 32% 87% 41% 22% 14% 7% 40%
Data licensing & other 107,424 114,258 121,460 122,795 125,445 121,444 127,784 134,284 137,178 137,016 143,313 154,283 465,937 508,957 571,790
QoQ% -9% 6% 6% 1% 2% -3% 5% 5% 2% 0% 5% 8% n/a n/a n/a
YoY% 20% 4% 12% 5% 17% 6% 5% 9% 9% 13% 12% 15% 10% 9% 12%

United States advertising revenue 362,800 378,545 384,547 509,189 381,364 283,452 427,827 646,197 463,615 562,329 647,499 784,656 1,635,081 1,738,840 2,458,099
QoQ% -15% 4% 2% 32% -25% -26% 51% 51% -28% 21% 15% 21% n/a n/a n/a
YoY% 26% 29% 11% 20% 5% -25% 11% 27% 22% 98% 51% 21% 21% 6% 41%
International advertising revenue 316,666 348,578 317,710 375,357 300,828 278,542 380,622 508,560 435,225 491,082 493,005 628,281 1,358,311 1,468,552 2,047,593
QoQ% -13% 10% -9% 18% -20% -7% 37% 34% -14% 13% 0% 27% n/a n/a n/a
YoY% 10% 13% 5% 3% -5% -20% 20% 35% 45% 76% 30% 24% 7% 8% 39%

GAAP Revenue (United States) 432,356 455,201 465,409 591,056 468,430 364,881 512,637 732,888 556,220 653,075 741,879 884,586 1,944,022 2,078,836 2,835,760
QoQ% -14% 5% 2% 27% -21% -22% 40% 43% -24% 17% 14% 19% n/a n/a n/a
YoY% 25% 24% 10% 17% 8% -20% 10% 24% 19% 79% 45% 21% 18% 7% 36%
% of total GAAP revenue 55% 54% 57% 59% 58% 53% 55% 57% 54% 55% 58% 56% 56% 56% 56%

GAAP Revenue (International) 354,534 386,180 358,308 416,285 339,207 318,557 423,596 556,153 479,798 537,352 541,938 682,634 1,515,307 1,637,513 2,241,722
QoQ% -12% 9% -7% 16% -19% -6% 33% 31% -14% 12% 1% 26% n/a n/a n/a
YoY% 11% 12% 7% 3% -4% -18% 18% 34% 41% 69% 28% 23% 8% 8% 37%
% of total GAAP revenue 45% 46% 43% 41% 42% 47% 45% 43% 46% 45% 42% 44% 44% 44% 44%

(1) The sum of individual metrics may not always equal total amounts indicated due to rounding.
 Selected Company Metrics and Financials

($ in 000's)
FY 2019 FY 2020 FY 2021 Fiscal Year
Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20(2) Q3'20 Q4'20 Q1'21 Q2'21 Q3'21(3) Q4'21 2019 2020 2021
GAAP P&L
GAAP Revenue 786,890 841,381 823,717 1,007,341 807,637 683,438 936,233 1,289,041 1,036,018 1,190,427 1,283,817 1,567,220 3,459,329 3,716,349 5,077,482
Cost of revenue 264,011 277,965 281,057 314,008 284,037 288,039 361,388 432,924 381,008 416,932 484,479 515,091 1,137,041 1,366,388 1,797,510
Research and development 146,246 159,242 178,553 198,240 200,388 215,806 208,877 247,940 250,709 299,859 324,252 371,884 682,281 873,011 1,246,704
Sales and marketing 205,799 240,249 226,204 241,561 221,287 207,286 215,285 244,002 234,592 301,902 301,078 338,398 913,813 887,860 1,175,970
General and administrative 77,176 88,239 93,758 100,648 109,368 246,237 94,576 112,251 117,527 141,482 150,855 174,472 359,821 562,432 584,336
Litigation settlement, net 0 0 0 0 0 0 0 0 0 0 765,701 0 0 0 765,701
Income (loss) from operations 93,658 75,686 44,145 152,884 (7,443) (273,930) 56,107 251,924 52,182 30,252 (742,548) 167,375 366,373 26,658 (492,739)
Operating margin 12% 9% 5% 15% -1% -40% 6% 20% 5% 3% -58% 11% 11% 1% -10%
Interest expense (37,260) (38,317) (36,226) (26,377) (33,270) (39,828) (39,614) (40,166) (13,185) (13,893) (13,284) (10,824) (138,180) (152,878) (51,186)
Interest income 40,541 42,887 40,348 33,927 32,897 25,013 17,167 13,101 11,001 9,202 8,125 7,355 157,703 88,178 35,683
Other income (expense), net (436) 7,523 (504) (2,340) (7,719) (361) (3,977) (840) 6 55,739 20,625 20,759 4,243 (12,897) 97,129
Provision (benefit) for income taxes (94,301) (1,031,781) 11,241 39,321 (7,139) 1,088,899 1,024 1,903 (18,001) 15,651 (190,325) 2,971 (1,075,520) 1,084,687 (189,704)
Net income (loss) 190,804 1,119,560 36,522 118,773 (8,396) (1,378,005) 28,659 222,116 68,005 65,649 (536,757) 181,694 1,465,659 (1,135,626) (221,409)
Net margin 24% 133% 4% 12% -1% -202% 3% 17% 7% 6% -42% 12% 42% -31% -4%

Selected Balance Sheet Data

Cash, cash equivalents, and short-term investments 6,459,892 6,686,538 5,816,384 6,639,052 7,670,664 7,766,014 7,681,047 7,472,302 8,806,287 8,607,063 7,411,312 6,393,682 6,639,052 7,472,302 6,393,682
Working capital 5,634,106 5,779,045 5,861,824 6,787,599 7,757,559 7,654,180 6,654,476 6,684,282 7,827,049 7,470,222 6,534,253 6,574,503 6,787,599 6,684,282 6,574,503
Property and equipment, net 913,096 982,513 994,266 1,031,781 1,081,371 1,142,601 1,392,720 1,493,794 1,620,001 1,884,790 2,053,480 2,082,160 1,031,781 1,493,794 2,082,160
Total stockholders' equity 7,088,819 8,344,814 8,415,642 8,704,386 8,795,627 7,658,055 7,812,088 7,970,082 7,736,650 7,716,128 7,172,631 7,307,199 8,704,386 7,970,082 7,307,199

Cash Flow From Operating Activities to Adjusted Free Cash Flow Reconciliation
Cash flows from operating activities(4) 351,693 338,973 335,519 277,179 246,767 201,016 214,787 330,300 390,184 381,967 388,980 (528,442) 1,303,364 992,870 632,689
Purchases of property and equipment (83,026) (135,795) (170,252) (151,615) (122,667) (164,416) (290,746) (295,525) (181,181) (279,195) (411,227) (139,943) (540,688) (873,354) (1,011,546)
Proceeds from sales of property and equipment 1,956 1,101 1,233 1,868 1,623 2,282 1,910 3,355 1,835 3,002 2,076 1,549 6,158 9,170 8,462
Adjusted free cash flow 270,623 204,279 166,500 127,432 125,723 38,882 (74,049) 38,130 210,838 105,774 (20,171) (666,836) 768,834 128,686 (370,395)

Selected Cash Flow Supplemental Disclosures

Cash flows from investing activities 29,446 (413,828) 314,920 (1,046,512) 466,144 (578,957) (1,120,076) (327,676) 680,358 (209,781) 93,076 (511,030) (1,115,974) (1,560,565) 52,623
Cash flows from financing activities (29,101) 3,948 (954,207) 693,185 963,984 25,098 (7,812) (225,960) 1,197,678 (299,181) (1,129,621) (241,699) (286,175) 755,310 (472,823)

(2) In the second quarter of 2020, we recorded an accrual of $150 million in accrued and other current liabilities in the consolidated balance sheets and in general and administrative expenses in the consolidated statements of operations related to a draft complaint from the Federal Trade Commission.
(3) In the third quarter of 2021, we entered into an agreement to settle a shareholder class action lawsuit and recorded a charge of $809.5 million partially offset by the recognition of an insurance recovery of $5.8 million. In addition, during the quarter we recorded a benefit for insurance proceeds of $38.0 million related to the
settlement of separate shareholder derivative lawsuits.
(4) Net cash used in operating activities in the three months ended December 31, 2021 reflects a $809.5 million payment we made to settle a shareholder class action lawsuit.
 Selected Company Metrics and Financials

($ in 000's)
FY 2019 FY 2020 FY 2021 Fiscal Year
Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20(5) Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 2019 2020 2021
Net Income (Loss) to Adjusted EBITDA Reconciliation
Net income (loss) 190,804 1,119,560 36,522 118,773 (8,396) (1,378,005) 28,659 222,116 68,005 65,649 (536,757) 181,694 1,465,659 (1,135,626) (221,409)
Stock-based compensation expense 83,491 94,615 98,623 101,296 97,903 132,876 115,969 128,184 110,873 178,202 164,295 176,531 378,025 474,932 629,901
Depreciation and amortization expense 113,474 115,616 119,986 116,473 120,649 123,837 121,983 128,708 131,052 134,812 133,448 145,536 465,549 495,177 544,848
Interest and other expense (income), net (2,845) (12,093) (3,618) (5,210) 8,092 15,176 26,424 27,905 2,178 (51,048) (15,466) (17,290) (23,766) 77,597 (81,626)
Provision (benefit) for income taxes (94,301) (1,031,781) 11,241 39,321 (7,139) 1,088,899 1,024 1,903 (18,001) 15,651 (190,325) 2,971 (1,075,520) 1,084,687 (189,704)
Restructuring charges and one-time nonrecurring gain 0 (217) 0 0 0 0 0 0 0 0 0 0 (217) 0 0
Adjusted EBITDA 290,623 285,700 262,754 370,653 211,109 (17,217) 294,059 508,816 294,107 343,266 (444,805) 489,442 1,209,730 996,767 682,010

GAAP Costs and Expenses to Non-GAAP Costs and Expenses Reconciliation by Function
Total GAAP cost of revenue 264,011 277,965 281,057 314,008 284,037 288,039 361,388 432,924 381,008 416,932 484,479 515,091 1,137,041 1,366,388 1,797,510
Less: stock-based compensation expense 5,048 5,973 5,757 6,019 5,756 8,996 8,581 8,687 8,732 13,120 11,627 11,724 22,797 32,020 45,203
Less: amortization of acquired intangible assets 4,320 3,763 3,806 4,034 5,041 7,519 5,424 5,585 6,499 6,973 7,587 6,953 15,923 23,569 28,012
Less: restructuring charges and one-time nonrecurring gain 0 (13) 0 0 0 0 0 0 0 0 0 0 (13) 0 0
Total non-GAAP cost of revenue 254,643 268,242 271,494 303,955 273,240 271,524 347,383 418,652 365,777 396,839 465,265 496,414 1,098,334 1,310,799 1,724,295

Total GAAP research and development expense 146,246 159,242 178,553 198,240 200,388 215,806 208,877 247,940 250,709 299,859 324,252 371,884 682,281 873,011 1,246,704
Less: stock-based compensation expense 46,261 50,229 53,009 59,564 60,587 77,988 66,111 76,406 65,156 103,312 101,515 111,978 209,063 281,092 381,961
Less: amortization of acquired intangible assets 0 0 0 0 0 0 0 0 1,508 4,609 3,071 2,624 0 0 11,812
Less: restructuring charges and one-time nonrecurring gain 0 (73) 0 0 0 0 0 0 0 0 0 0 (73) 0 0
Total non-GAAP research and development expense 99,985 109,086 125,544 138,676 139,801 137,818 142,766 171,534 184,045 191,938 219,666 257,282 473,291 591,919 852,931

Total GAAP sales and marketing expense 205,799 240,249 226,204 241,561 221,287 207,286 215,285 244,002 234,592 301,902 301,078 338,398 913,813 887,860 1,175,970
Less: stock-based compensation expense 18,065 22,202 23,755 21,717 18,839 29,183 25,550 25,176 21,171 36,371 27,105 28,343 85,739 98,748 112,990
Less: amortization of acquired intangible assets 465 155 0 0 0 0 0 0 100 150 150 1,000 620 0 1,400
Less: restructuring charges and one-time nonrecurring gain 0 (87) 0 0 0 0 0 0 0 0 0 0 (87) 0 0
Total non-GAAP sales and marketing expense 187,269 217,979 202,449 219,844 202,448 178,103 189,735 218,826 213,321 265,381 273,823 309,055 827,541 789,112 1,061,580

Total GAAP general and administrative expense 77,176 88,239 93,758 100,648 109,368 246,237 94,576 112,251 117,527 141,482 150,855 174,472 359,821 562,432 584,336
Less: stock-based compensation expense 14,117 16,211 16,102 13,996 12,721 16,709 15,727 17,915 15,814 25,399 24,048 24,486 60,426 63,072 89,747
Less: amortization of acquired intangible assets 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Less: restructuring charges and one-time nonrecurring gain 0 (44) 0 0 0 0 0 0 0 0 0 0 (44) 0 0
Total non-GAAP general and administrative expense 63,059 72,072 77,656 86,652 96,647 229,528 78,849 94,336 101,713 116,083 126,807 149,986 299,439 499,360 494,589

Total GAAP litigation settlement, net(6) 0 0 0 0 0 0 0 0 0 0 765,701 0 0 0 765,701

Total non-GAAP litigation settlement, net 0 0 0 0 0 0 0 0 0 0 765,701 0 0 0 765,701

Total GAAP costs and expenses 693,232 765,695 779,572 854,457 815,080 957,368 880,126 1,037,117 983,836 1,160,175 2,026,365 1,399,845 3,092,956 3,689,691 5,570,221
Less: stock-based compensation expense 83,491 94,615 98,623 101,296 97,903 132,876 115,969 128,184 110,873 178,202 164,295 176,531 378,025 474,932 629,901
Less: amortization of acquired intangible assets 4,785 3,918 3,806 4,034 5,041 7,519 5,424 5,585 8,107 11,732 10,808 10,577 16,543 23,569 41,224
Less: restructuring charges and one-time nonrecurring gain 0 (217) 0 0 0 0 0 0 0 0 0 0 (217) 0 0
Total non-GAAP costs and expenses 604,956 667,379 677,143 749,127 712,136 816,973 758,733 903,348 864,856 970,241 1,851,262 1,212,737 2,698,605 3,191,190 4,899,096

Net Income (Loss) to Non-GAAP Net Income (Loss) Reconciliation

Net income (loss) 190,804 1,119,560 36,522 118,773 (8,396) (1,378,005) 28,659 222,116 68,005 65,649 (536,757) 181,694 1,465,659 (1,135,626) (221,409)
Exclude: provision (benefit) for income taxes (94,301) (1,031,781) 11,241 39,321 (7,139) 1,088,899 1,024 1,903 (18,001) 15,651 (190,325) 2,971 (1,075,520) 1,084,687 (189,704)
Income (loss) before income taxes 96,503 87,779 47,763 158,094 (15,535) (289,106) 29,683 224,019 50,004 81,300 (727,082) 184,665 390,139 (50,939) (411,113)
Stock-based compensation expense 83,491 94,615 98,623 101,296 97,903 132,876 115,969 128,184 110,873 178,202 164,295 176,531 378,025 474,932 629,901
Amortization of acquired intangible assets 4,785 3,918 3,806 4,034 5,041 7,519 5,424 5,585 8,107 11,732 10,808 10,577 16,543 23,569 41,224
Non-cash interest expense related to convertible notes(7) 30,877 31,910 30,464 20,047 21,504 26,556 26,673 27,000 0 0 0 0 113,298 101,733 0
Impairment (gain) on investments in privately-held companies 0 (8,611) 0 0 8,003 500 339 0 0 (51,894) (24,900) (24,651) (8,611) 8,842 (101,445)
Restructuring charges and one-time nonrecurring gain 0 (217) 0 0 0 0 0 0 0 0 0 0 (217) 0 0
Non-GAAP income (loss) before income taxes 215,656 209,394 180,656 283,471 116,916 (121,655) 178,088 384,788 168,984 219,340 (576,879) 347,122 889,177 558,137 158,567
Non-GAAP provision (benefit) for income taxes(8) (72,829) (1,029,343) 43,820 87,859 29,508 1,118,723 26,713 71,762 27,773 44,821 (142,461) 63,132 (970,493) 1,246,706 (6,735)
Non-GAAP net income (loss) 288,485 1,238,737 136,836 195,612 87,408 (1,240,378) 151,375 313,026 141,211 174,519 (434,418) 283,990 1,859,670 (688,569) 165,302

(5) In the second quarter of 2020, we recorded $150 million in general and administrative expenses in the consolidated statements of operations related to a draft complaint from the Federal Trade Commission.
(6) Includes a charge of $809.5 million to settle a shareholder class action lawsuit partially offset by the recognition of an insurance recovery of $5.8 million in the third quarter of 2021. In addition, during the quarter we recorded a benefit for insurance proceeds of $38.0 million related to the settlement of separate shareholder derivative lawsuits.
(7) We adopted the new accounting standard update to simplify the accounting for convertible debt on January 1, 2021 using the modified retrospective method. The adoption eliminates the non-cash interest expense related to the conversion features of the convertible notes beginning in the first quarter of 2021.
(8) The non-GAAP benefit from income taxes for the three months ended March 31, 2019 and June 30, 2019 includes benefits of $124.4 million and $1.08 billion, respectively, from the establishment of deferred tax assets from intra-entity transfers of intangible assets. The non-GAAP provision for income taxes for the three months ended June 30, 2020
includes a provision of $1.11 billion related to the establishment of a valuation allowance against deferred tax assets.