What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-02-04 compared with 2021-02-05 · 46 added, 31 removed, 155 unchanged (33% of the section changed)

14 unchanged sentences

Our augmented reality, or AR, capabilities within our Camera allow for creativity and self-expression.

We offer millions of Lenses, created by both us and our community, along with creative tools and licensed music, which make it easy for people to personalize and contextualize their Snaps.

We offer millions of Lenses, created by both us and our community, along with creative tools and licensed music and audio clips, which make it easy for people to personalize and contextualize their Snaps.

We also offer voice and scanning technology within our Camera.

2 unchanged sentences

Spectacles connect seamlessly with Snapchat and capture photos and video from a human perspective.

Our latest version of Spectacles, designed for creators, overlays AR Lenses directly onto the world.

Communication :

5 unchanged sentences

Snap Map makes it easy to locate nearby friends who choose to share their location, view a heatmap of recent Snaps posted to Our Story by location, and locate local businesses.

Places, rich profiles of local businesses that include information such as store hours and reviews, allow Snapchatters to take direct actions from Map, such as sharing a favorite store, ordering takeout, or making a reservation.

Places, rich profiles of local businesses that include information such as store hours and reviews, overlay specialized experiences from select partners on top of Snap Map, and allow Snapchatters to take direct actions from Snap Map, such as sharing a favorite store, ordering takeout, or making a reservation.

Stories feature content from a Snapchatter’s friends, our community, and our content partners.

The Discover section of this tab displays content based on a Snapchatter’s subscriptions and interests, and features news and entertainment from both our creator community and publisher partners, as well as original content in Snap Originals.

We also offer Brand Profiles, as a way for our advertising partners to memorialize and scale their content on our platform, as well as Public Profiles for our creator community.

Friends Stories allow our community to express themselves in narrative form through photos and videos, shown in chronological order, to their friends.

The Discover section of this tab displays curated content based on a Snapchatter’s subscriptions and interests, and features news and entertainment from both our creator community and publisher partners, as well as original content in Snap Originals.

We also offer Public Profiles, as a way for our creator community and our advertising partners to memorialize and scale their content and AR Lenses on our platform.

Spotlight is a way to broadly share user-generated content with the entire Snapchat community.

Here we surface the most entertaining Snaps from our community all in one place, which becomes tailored to each Snapchatter over time based on their preferences and favorites.

The Trending page allows Snapchatters to discover and engage with popular topics and genres.

Our Partner Ecosystem

1 unchanged sentence

We help them create and bring content and experiences into Snapchat, leverage Snapchat capabilities in their own applications and websites, and use advertising to promote these and other experiences to our large, engaged, and differentiated user base.

Developers are able to integrate with Snapchat in many ways, including through Games, Minis, and Snap Kit.

Snap Kit invites developers to easily build with Snapchat, bringing the best of Snapchat’s technology to grow their businesses and create engaging experiences.

Through Camera Kit, our partners can embed Snap’s AR platform directly into their application, extending our reach and expanding our opportunity to learn through new AR use cases.

Partners can access a turnkey suite of tools and services, from Lenses AR experiences creation to Lens carousel management and analytics, to enable AR technology for their community.

Snap Kit products include Camera Kit, Creative Kit, Login Kit, Bitmoji Kit, Story Kit, Ad Kit, and Sticker Kit.

AR creators can use Lens Studio, our powerful desktop application designed for creators and developers, to build augmented reality experiences for Snapchatters.

Spotlight creators can utilize our content creation tools to reach millions of Snapchatters and build their businesses through various monetization opportunities.

Our Creator Marketplace connects both AR and Spotlight creators directly with our advertising partners.

Publisher partners can expand their audiences and monetize content through our Discover platform.

In addition, we work with various telecommunications providers and original equipment manufacturers, particularly as we build our presence in new markets.

Our Advertising Products

4 unchanged sentences

Ads can be served as Sponsored Lenses or Sponsored Filters.

Lenses are designed through our camera to take advantage of the reach and scale of our augmented reality platform to create visually engaging 3D experiences.

Lenses are designed through our camera to take advantage of the reach and scale of our augmented reality platform to create visually engaging 3D experiences, including the ability to sample and try on products such as beauty, apparel, accessories, and footwear.

Filters are entertaining, artistic overlays that appear after you take a Snap.

These Lenses and Filters can be memorialized on Snapchat, through Brand Profiles that aggregate content, filters, and lenses in a single, easy to find place.

These Lenses and Filters can be memorialized on Snapchat, through Public Profiles that aggregate content, filters, and lenses in a single, easy to find place.

We let advertisers tell their stories the same way our users do, using full screen videos with sound.

10 unchanged sentences

Campaign Management and Delivery :

We aim to continually improve the way ads are purchased and delivered.

We aim to continually improve the way these ad formats are purchased and delivered.

We have invested heavily to build our self-serve advertising platform, which provides automated, sophisticated, and scalable ad buying and campaign management.

We offer the ability to bid for advertisements that are designated to drive Snapchatters to:

visit a website, visit a local business, call or text a business, download an app, or return to an app.

visit a website, make a purchase, visit a local business, call or text a business, watch a story or video, download an app, or return to an app, among others.

Additionally, our delivery framework continues to optimize relevance of ads across the entire platform by determining the best ad to show to any given user based on their real-time and historical attributes and activity.

2 unchanged sentences

Measuring Advertising Effectiveness :

We offer third-party and first-party solutions to provide a vast array of analytics on campaign attributes like reach, frequency, demographics, and viewability;

We offer first-party and third-party solutions to provide a vast array of analytics on campaign attributes like reach, frequency, demographics, and viewability;

changes in perceptions like brand favorability or purchase intent;

8 unchanged sentences

Large-scale Infrastructure :

We spend considerable resources and investment on the underlying architecture that powers our products, such as optimizing the delivery of billions of videos to millions of people around the world every day.

We currently partner with providers like Google and Amazon to support the infrastructure for our growing needs.

These partnerships have allowed us to scale quickly without upfront infrastructure costs, allowing us to focus our efforts on product innovation.

We spend considerable resources and investment on the underlying architecture that powers our products, such as optimizing the delivery of billions of videos to hundreds of millions of people around the world every day.

We currently partner with third party providers to support the infrastructure for our growing needs.

These partnerships have allowed us to scale quickly without upfront physical infrastructure costs, allowing us to focus our efforts on product innovation.

Employees and Culture

2 unchanged sentences

Our values at Snap are being kind, smart, and creative, and we put those values into action through how we support our team and how our team supports one another.

Our practice of Council, which is a practice of active listening that promotes open-mindedness and cultivates empathy and compassion among participants, helps us build and sustain a community steeped in integrity, connection, collaboration, creativity, and kindness.

Council, which is a practice of active listening that promotes open-mindedness and cultivates empathy and compassion among participants, helps us build and sustain a community steeped in integrity, connection, collaboration, creativity, and kindness.

Our talent development programs seek to unlock potential by helping team members advance, learn, and grow in a fair and equitable way at Snap.

4 unchanged sentences

Snap has long supported a Diversity, Equity and Inclusion, or DEI, program, and we have made progress on a number of fronts, including diversifying our board of directors and executive leadership, introducing new accountability around DEI outcomes, rolling out an allyship program to inspire a more inclusive culture, and enhancing our recruiting process to continue driving diverse hiring.

To aid in our mission, we published our first Diversity Annual Report in 2020 to discuss our goals with respect to diversity, equity, and inclusion efforts.

To aid in our mission, we publish a Diversity Annual Report that discusses our goals with respect to diversity, equity, and inclusion efforts.

This report outlines our beliefs around the idea that an inclusive workplace and inclusive products are central to achieving that purpose.

This report is part of our larger Citizen Snap Report that details the work we’re doing to support our communities, our planet, and our team, and is available on our website at www.snap.com.

This report is excerpted in our broader CitizenSnap Report that details the work we’re doing to support our communities, our planet, and our team, and is available on our website at www.snap.com.

Human Capital :

5 unchanged sentences

As of December 31, 2021, we had approximately 5,661 full-time employees, of whom approximately 54% are in engineering roles involved in the design, development, support, and manufacture of new and existing products and processes.

Climate Change:

We are deepening our commitment to help combat climate change.

In 2021, we adopted science-based emissions reduction targets approved by the Science Based Targets Initiative.

We became historically carbon neutral in 2021 by purchasing offsets to balance emissions attributable to Snap from our founding in 2011 through December 31, 2020.

We also purchased renewable energy certificates in 2021 sufficient to cover all of the electricity consumed in our U.S.

operations for the year ended December 31, 2020.

Our Commitment to Privacy

11 unchanged sentences

When you read our Privacy Policy, we hope that you’ll notice how much we care about the integrity of personal communication.

For starters, we’ve written our Privacy Policy in plain language because we think it’s important that everyone understand exactly how we handle their information.

For starters, we’ve written our Privacy Policy in plain language because we think it’s important that everyone understands exactly how we handle their information.

Otherwise, it’s hard to make informed choices about how you communicate.

1 unchanged sentence

There, we point out the many ways that users can control who sees their Snaps and Stories, and explain how long content will remain on our servers, how users can manage the information that we do have about them, and much more.

This is where you’ll also find our Transparency Report.

This is where you’ll also find our Transparency Report in which we provide insight into these efforts and visibility into the nature and volume of content reported on our platform.

We also understand that privacy policies—no matter how ambitious—are only as good as the people and practices behind those policies.

3 unchanged sentences

We compete with other companies in every aspect of our business, particularly with companies that focus on mobile engagement and advertising.

Many of these companies, such as Apple, Facebook (including Instagram and WhatsApp), Google (including YouTube), and Twitter, have significantly greater financial and human resources and, in some cases, larger user bases.

Given the breadth of our product offerings, we also compete with companies that develop products or otherwise operate in the mobile, camera, communication, content, and advertising industries that offer, or will offer, products and services that may compete with Snapchat features or offerings.

Our competitors span from internet technology companies and digital platforms, including advertising-supported video on demand platforms, to traditional companies in print, radio, and television sectors to underlying technologies like default smartphone cameras and messaging.

Many of these companies, such as Alphabet (including Google and YouTube), Apple, ByteDance (including TikTok), Meta (including Facebook, Instagram, and WhatsApp), Pinterest, and Twitter, may have greater financial and human resources and, in some cases, larger user bases.

Given the breadth of our product offerings, we also compete with

companies that develop products or otherwise operate in the mobile, camera, communication, content, and advertising industries that offer, or will offer, products and services that may compete with Snapchat features or offerings.

Our competitors span from internet technology companies and digital platforms, to traditional companies in print, radio, and television sectors to underlying technologies like default smartphone cameras and messaging.

Additionally, our competition for engagement varies by region.

For instance, we face competition from companies like Kakao, LINE, Naver (including Snow), Bytedance (including TikTok), and Tencent in Asia.

For instance, we face competition from companies like Kakao, LINE, Naver (including Snow), and Tencent in Asia.

We compete to attract and retain our users’ attention, both in terms of reach and engagement.

16 unchanged sentences

We may not be able to obtain protection for our intellectual property, and our existing and future patents, trademarks, and other intellectual property rights may not provide us with competitive advantages or distinguish our products and services from those of our competitors.

Our patent applications may not result in the issuance of patents, and any resulting issued patents may have claims narrower than those in our patent applications.

Additionally, our current and future patents, trademarks, and other intellectual property rights may be contested, circumvented, or found unenforceable or invalid, and we may not be able to prevent third parties from infringing them.

Our internal controls and contractual provisions may not always be effective at preventing unauthorized parties from obtaining our intellectual property and proprietary technologies.

We license content, trademarks, technology, and other intellectual property from our partners, and rely on our license agreements with those partners to use the intellectual property.

2 unchanged sentences

Other companies and “non-practicing entities” that own patents, copyrights, trademarks, trade secrets, and other intellectual property rights related to the mobile, camera, communication, content, internet, and other technology-related industries frequently enter into litigation based on allegations of infringement, misappropriation, and other violations of intellectual property or other rights.

Third parties, including our competitors and non-practicing entities, have and may continue to make claims from time to time that we have infringed their patents, trademarks, copyrights, trade secrets, or other intellectual property rights.

We are party to many agreements under which we are obligated to indemnify our customers, suppliers, and channel partners against such claims.

As our business continues to grow and competition increases, we will likely face more claims related to intellectual property and litigation matters.

Government Regulation

We are subject to many U.S.

federal and state and foreign laws and regulations, including those related to privacy, rights of publicity, data protection, content regulation, intellectual property, health and safety, competition, protection of minors, consumer protection, and taxation.

We are subject to many federal, state, local, and foreign laws and regulations, including those related to privacy, rights of publicity, data protection, content regulation, intellectual property, health and safety, competition, protection of minors, consumer protection, employment, money transmission, import and export restrictions, gift cards, electronic funds transfers, anti-money laundering, advertising, algorithms, encryption, and taxation.

These laws and regulations are constantly evolving and may be interpreted, applied, created, or amended in a manner that could harm our business.

Compliance with these laws and regulations has not had, and is not expected to have, a material effect on our capital expenditures, results of operations, and competitive position as compared to prior periods, and we do not currently anticipate material capital expenditures for environmental control facilities.

Compliance with these laws

and regulations has not had, and is not expected to have, a material effect on our capital expenditures, results of operations, and competitive position as compared to prior periods, and we do not currently anticipate material capital expenditures for environmental control facilities.

In December 2014, the Federal Trade Commission resolved an investigation into some of our early practices by handing down a final order.

6 unchanged sentences

Not all of our products are available in all locations and may not be due to such laws and regulations.

We have a public policy team that monitors legal and regulatory developments in the United States, as well as many foreign countries, and communicates with policymakers and regulators in the United States and internationally.

Our public policy team monitors legal and regulatory developments in the United States, as well as many foreign countries, and communicates with policymakers and regulators in the United States and internationally.

Corporate Information

2 unchanged sentences

We completed our initial public offering in March 2017 and our Class A common stock is listed on the New York Stock Exchange, or NYSE, under the symbol “SNAP.”

Our principal executive offices are located at 2772 Donald Douglas Loop North, Santa Monica, California 90405, and our telephone number is (310) 399-3339.

Our principal executive offices are located at 3000 31st Street, Santa Monica, California 90405, and our telephone number is (310) 399-3339.

Snap Inc., “Snapchat,” and our other registered and common-law trade names, trademarks, and service marks appearing in this Annual Report on Form 10-K are property of Snap Inc.

10 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business