Good afternoon, everyone and welcome to Snap, Inc.'s Second Quarter 2017 Earnings Call. At this time participants are in a listen-only mode. After the prepared remarks there will be a question-and-answer session. [Operator Instructions] This call will be recorded. Thank you very much. Mr. Arman Panjwani, Investor Relations, you may begin.

Thank you, and good afternoon, everyone. Welcome to Snap, Inc's Third Quarter 2017 Earnings Conference Call. With us today are Evan Spiegel, CEO; Imran Khan, Chief Strategy Officer; and Drew Vollero, CFO. Earlier today we made a slide presentation available reviewing our key engagement and financial metrics for the third quarter of 2017, which can be found on our Investor Relations' website. Now I will quickly cover the Safe Harbor. Today's call is to provide you with information regarding our third quarter 2017 performance in addition to our financial outlook. This conference call includes forward-looking statements. Any statement that refers to expectations, projections, or other characterizations of future events, including financial projections or future market conditions, is a forward-looking statement. Actual results may differ materially from those expressed in these forward-looking statements, and we make no obligation to update our disclosures. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release we issued today, as well as risks described in our prospectus dated March 1, 2017, particularly in the section titled Risk Factors. This information can also be found in our other filings with the SEC, when available. Our commentary today will also include non-GAAP financial measures. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Reconciliations between GAAP and non-GAAP metrics for our reported results can be found in our press release issued today, a copy of which can be found on our website at investor.snap.com. At times in our prepared comments, or in response to questions, we may offer additional metrics to provide greater insight to our business or our quarterly results. This additional detail may be one-time in nature, and we may or may not provide an update in the future on these metrics. With that, I'd like to turn the call over to Evan.

Good afternoon and thank you for joining our call. As we are rapidly approaching the end of 2017, I thought it might be useful to speak to our progress against the three priorities I shared earlier this year; performance, quality, and automation, and discuss our three new priorities for 2018; user growth, content, and augmented reality. We have been very focused on making progress against performance, quality, and automation this year, and are beginning to see the results of these efforts. Application performance has increased considerably, and we have made meaningful progress against key customer facing metrics. For example, since April, we have reduced the average time it takes for Android users to start our camera application by over 20%. Camera startup time is very important for Snapchat because people use our service to quickly capture moments to share with friends. As part of our quality efforts, we have been building a new world-class device lab for test automation and quality assurance. We've also distributed a wide variety of Android handsets across our engineering organization to ensure that we have ongoing qualitative feedback on Android application performance and design. In Q3 alone, Snapchat was used on over 60,000 different Android model variants. Given the sheer volume of different Android handsets used to access Snapchat, we have had to establish new processes to ensure that our quality efforts can be maintained. This will be an ongoing investment, but I am pleased to say that this quarter, monthly crash rates across both iOS and Android reached an all-time low since we started tracking this metric early last year. Our efforts at automation have gained traction very quickly this year, with 80% of Snap Ad impressions delivered programmatically in Q3, up from zero%, one year ago. The speed of this transition surpassed our…

Thank you, Evan. Total advertising revenue for the quarter was $204 million, an increase of 59% year-over-year and 16% quarter-over-quarter. This represents healthy growth, but we're working tirelessly because we want to grow revenue faster. I want to focus my time today on a few factors that we believe have set us up well for strong growth in the future quarters. One, transitioning the majority of our business to self-serve; two, addressing the needs of our increasingly diverse advertiser mix; and three, democratizing our Sponsored Creative Tools so that all advertisers can use them. I'll talk about how each of these factors challenged us and what we are doing to address them. First, we have been focused over the past year on transitioning the majority of our Snap Ads business to self-serve. We launched our Ads API a year ago. This marked the beginning of our transition to programmatic advertising. We followed it in June with our own self-service tool. The transition to self-serve is an important part of scaling our business for a number of strategic reasons. For instance, in our auction platform, advertisers can now specify and optimize delivery against certain business objectives, such as driving app installs or video views. With this framework, we can address the needs of many more advertisers and help them achieve their desired business goals at scale. We have also made it easier for advertisers to test and learn. The auction has lowered the entry price point by three orders of magnitude, making it more accessible to all advertisers. And, our self-serve tools have made it possible to manage campaigns with ongoing testing and real-time improvements. Given these strategic reasons, we have been very aggressively transitioning our Snap Ad, or full-screen mobile video business to self-serve. And advertisers' adoption has been tremendous.…

Thanks, Imran, and good afternoon, everyone. Snap continues to make solid progress against its long-term goals, and the growing traction across many areas of our business is encouraging. Let me speak to the third quarter highlights. First, both Snap Ads and Creative Tools remain a strong one-two combination. Revenue from both product lines increased sequentially and year-over-year. We also saw more growth in engagement in the quarter. Metrics such as time on the app, video views and frequency of use all grew in Q3. We made meaningful progress building out our auction platform. Numerically, over 80% of Snap Ad impressions were delivered via the auction, up from 60% in Q2. Overall, Snap Ad impressions grew substantially. Snap Ad impressions increased over 60% sequentially and over 400% year-over-year. This means that we were able to grow ad impressions and engagement simultaneously, which is a positive sign for the long-term growth of our business. As Imran mentioned, the auction transition continued to impact Snap Ad pricing in the quarter. In Q3, Snap ad pricing was down more than 20% sequentially and over 60% year-over-year, most of which was driven by the mix shift from reserved inventory at rate card prices to the unreserved auction. On a positive note, we were able to partially offset pricing declines with auction contestation. During Q3, we saw that auctions with multiple bidders resulted in prices that were over 40% higher than uncontested auctions. Furthermore, prices for ads that were contested grew sequentially in the quarter. On the cost side, our gross margins continue to scale well. We are seeing clear leverage in hosting and revenue share expenses, which is driving continued gross margin expansion. Please note that when I discuss all of our expense figures including gross margins, they will exclude stock-based compensation and related payroll…

That concludes the prepared remarks for today's earnings call and we will now begin the question-and-answer session. [Operator Instructions] In the interest of time we ask that you please limit yourself to one question. At this time we will pause momentarily to assemble our roster. The first question comes from Stephen Ju with Credit Suisse. Please go ahead.

Thanks. So Imran in order for the auctions to continue to be highly contested it seems like you have to give advertisers ongoing reasons to pay more because that is presumably more highly targeted and has higher ROI. So sounds like you are just starting to ramp up attribution tools. So anyway to characterize, what percentage of your typical advertiser's budgets are being spent on more highly targeted basis? Thanks.

Yeah. I think a couple of things need to happen for auction density to grow. First off is onboarding lot more advertisers and I think remember we launched our self-service platform in Q2 and we are pretty excited with the progress we made. We talked about it, we saw albeit increased the number of advertisers on our platform and we continue to invest heavily on inside sales team reaching out to small marketers and onboarding them to more and more advertisers on the platform. At the same time in terms of targeting, we actually made pretty significant investments over the last 12 months to help people reach the right -- show the right ad to the right audience, because when we show the right ad to the right audience it actually attracts more significant value for our users, for more advertisers and I think we made pretty good progress on that. On the first query attributions side, Pixel is out. I think we are going to continue to push it forward and I think that will drive advertisers to even more visibility in terms of what kind of ROI they have generated.

Our next question comes from Mark Mahaney with RBC. Please go ahead.

Hey, this is [indiscernible] for Mark. Thanks for taking my question. In terms of your programmatic advertising business, what are your views on opening up the Snap platform to third-party [DSPs] or exchanges to add incremental demand? Thanks.

Yes. I think right now we think the best way to drive our business to have the self-service platform where advertisers can reach directly rather than the DSP. We have an incredible audience base and we are very, very excited that audience and understanding about the audience, I think when you open up the DSP platform and things like that there is always a risk that information leakage out of your platform and that's not optimal. So I think we like our strategy of having self-service platform where our advertisers and agencies can come and reach the audience they want to reach and delivering the most right ad to the right person.

Our next question comes from Lloyd Walmsley with Deutsche Bank. Please go ahead.

Thanks. One for Imran and Drew and I guess one for Evan if I can. First, you guys talked about the pricing declines with the shift to programmatic as a headwind to revenue which seems obvious on a pricing impact. But are you really seeing budget pressure from this and specifically can you talk about what clients generally do with budgets when they shift to programmatic? Are they buying a consistent volume of impressions and tweaking budgets or just re-investing to get more volume such that it isn't really that much of a headwind to revenue? Any color you can share there would be great. And then a strategic one for Evan; seems like a lot of changes focusing on user growth, focusing on the creator communities. So just wondering, you know, if you can elaborate a bit how you guys had come around and how you get comfortable really as [this month] disrupt the [close friend] engagement that you guys have historically been so focused on?

I think in terms of our advertiser adoptions, you have seen that roughly 400% growth in ad impressions on our platform on a year-over-year basis. So we are very pleased with the number of ad impression growing on our platform. And I think as Evan pointed out in his quick dispatch the significant impression growth we saw engagement on our platform grow on a year-over-year basis. I think one of the key thing also is self-service, allowing us to do is bringing a lot more advertisers on our user advertising platform. We really didn't get big dollar from the direct response advertiser, or performance marketers and lot of mix site advertisers. And by opening up the self-service platform we are bringing them on the platform. I want to share an example of our small advertisers who are not a bit necessarily are performance advertisers would not be successful on our platform if it was [indiscernible]. So GOAT, which is an online marketplace for buying and selling sneakers on mobile, they used our platform to drive app install and they were able to drive LTV, life time value, 20% above their goal and improved product period by a month compared to other marketing channels. So this is a type of example that by opening up the platform we were able to access advertisers who would not be there in the past successful on our platform and they can spend more money and drive their goals.

You are right to point out that this communication between close friend is really valuable to our business and it remains the most important thing for Snap. So I think the really exciting thing about the redesign coming is that we have found a way to preserve and I think in many ways enhanced that friend communication while still providing more opportunities to provide distribution and monetization opportunities to contact vendors. And so I think you wish we were [inside] the roll out, but you are right that our focus here really is preserving that frequency and intimacy of communication between close friends.

Our next question is from Ross Sandler of Barclays. Please go ahead.

Hi, guys. Two questions. As in first on the user base, you called out that September was a big month for Android, added more net adds than iOS. So do you expect this to potentially accelerate going forward? And you talked about how you are working to simplify the app, is that happening right now or is that something that could happen in the future? And then Imran, on the self-serve platform, can you just talk about the behavior that some of these new advertisers were signing up in self-serve for the first time, what is the behavior? Are they ramping up their spend each week? Are they coming in and spending and then dropping off? Just any general color on the behavior of self-serve that will be great. Thank you.

Yeah. So given the distribution of Android devices in the world I would expect that over time we will see more net adds coming from Android which is why we focus so much on improving the Android experience and why we are re-building the Android application from the ground up to -- to make it easier to use. And right now, we are using a new version of the application internally and having a lot of fun with it, so excited to roll that out.

Yeah. I think Ross, with regards to your question, previously before the self-service platform if an advertiser wants to buy an advertisement they had to commit a significant chunk of dollars, in many cases couple of hundred thousand dollars and that's really difficult for many, many advertisers to come invest on a -- right on the new platform. With the self-service we saw that many advertisers are coming in on our platform and they are testing and as they are seeing success they are increasing their budget. I think one of the key thing we have seen that our performance advertising dollar or [DR] dollar has grown significantly. Also I talked about in the call that revenue from our small and medium sized businesses has tripled. So we are seeing great traction with that as more advertisers are coming and testing and learning and invest more.

Our next question is from Brian White with Drexel. Please go ahead.

Yeah. Evan you mentioned they are the priority in 2018 and I'm wondering you put a pretty cool world lens out there, Stranger Things with Netflix and I'm wondering how that innovation was received? And also how you are thinking about leveraging the True Depth Camera system on the iPhone X. I know Craig Federighi did a demonstration at the Apple event of September 12th, and did he shout out for Snap? So if you could just expand on that? Thanks.

Yeah. Thanks, Brian. You know I wish I had more data for you around the Stranger Things launch, because I agree that was super cool. I am more excited to see more and more advertisers experimenting with those products. I think they are creating really unique experiences for communities. So that's a win-win for us when our community really loves something that an advertiser is creating and spending a lot of time interacting with it. And as for the Apple innovation, very exciting to see, I think early days for Apple and their investments around AR. But the True Depth Camera obviously is ready for Snap and for the special -- on the front facing camera those lenses I think are enhanced by that building block that they provide.

Our next question is from John Blackledge with Cowen. Please go ahead.

Thanks. Two questions, on the app redesign. If you can give us a sense of the timing, any more insight into the changes and why you think the redesign could be disruptive in the near term? And then on the user side distribution the redesign and the new Android app, how should we think about user growth in the near term?

I don't have any timing to share with you today. So we will I guess look forward to surprising you with the redesign. But I think conceptually we have been spending a lot of our time sort of studying the evolution of content feeds on mobile and so if we kind of go back to the beginning of content feeds, Twitter was really the first content feed on mobile and it was interest based. So you would follow things you were interested in or news organization or celebrities and obviously the next evolution in that content feed. I would say for us invention of content feed based on content created by your friends and this was a very interesting innovation because it obviously personalized the content feed based on what your friends thought you would be interested in. and I think there is a really exciting opportunity here for another evolution about that content feed that addresses some of the short comings of the friend based content feed model. So for example on a friend based content feed, in order to get more content in that feed you need more friends and when people start adding more friends they then see a lot less comfortable posting content and so they start posting less. And that means that you need even more friends to get more content. And so you end up in this kind of precarious situation where because you based the content feed on what friends are posting you are sort of inherently limited in how you grow that collection of content. And ultimately what we found is that the best predictor of what people are interested in and want to watch is actually what they are watching, right. And I think there's an opportunity here for us to create a really great personalized content service that doesn't at all diminish the grades and I think very differentiated communications business that we have established.

Our next question is from Justin Post with Bank of America Merrill Lynch. Please go ahead. Hello, Justin your line is live, you may proceed with your question.

Sorry about that, I was on mute. My question is really the mix of time on the site. Clearly Snaps are up 40%, any change in that mix? And then could you talk a little bit about the monetization of Snaps, how that compares versus many of the discovered kind of stories, how do you think about that? Thank you.

Sure. So we don't break out the mix of time on the service. Overall time spent has been growing which is something that we are really excited about and so hopefully can share more with you in the future around that. I think it is a great opportunity to talk a little bit about our creative tools, like we talked about earlier around lenses, because those are a really fantastic way that we monetize our communication service. And so not only are we able to monetize the consumption side of the business around stories but also our creative tools like Geofilters and Lenses that has proven to be an expected way as Imran shared to drive much traction around our communications products.

Yeah. I think one of the key things to point out on Lenses and filters, I talked about in the call how we saw that because of audience in those lenses we saw 15% growth in the number of lenses sold on our platform in Q3 and doubled year-over-year. The other thing is these are very interesting product and completely differentiated product, for a longest period of time advertisers are trying to figure out how can they be part of the consumer conversations without being intrusive. Out lenses product and filters product actually give the advertisers the ability to be a part of the consumer conversation and in a very premium fashion. The other interesting thing is that the amount of time people are playing with those lenses product is actually pretty significant. In a world in mobile where the attention span is significantly lower, the play time on our lenses are actually very, very exciting to many, many advertisers and that's also driving the adoption. So I think we are actually very, very excited about both of our products [indiscernible] and our creative tools and we are using that as an opportunity to monetize those products long term.

The next question is from Brian Nowak with Morgan Stanley. Please go ahead.

Thanks for taking my question. I wanted on advertising kind of a high level picture on the ad format. Ad performance really matters to driving ad budgets, you are talking about a redesign of the app. How do you think about the potential risk that a minute spent in stories format is just going to monetize materially lower than other social interaction like a news feed. Is that a risk because the way people consume stories and you are able to monetize that as high as other formats and if that's the case, should you be having news feed?

I don't think we would add a news feed per se, but I definitely think there are ways to improve that performance on our service and we are always looking at evaluating that and as part of the redesign I do think there will be new monetization opportunities. Again too early to tell there, but we are excited about that.

Our next question is from Douglas Anmuth with JPMorgan. Please go ahead.

Thanks for taking the question. Just wanted to hit on two things. First, you talked about the DAU trajectories through the 3Q and it kind of ended stronger in September. Just curious on those lines what you can tell us about Maps and how that's doing, didn't seem to get as much commentary tonight as it did three months ago? And then, secondly, just how that DAU trajectory is kind of early in 4Q? And then just on the advertiser side, could you help us understand when an advertiser would use the direct sales force going forward versus the auction format? Thanks.

Just on Maps, we are very excited about how that product is progressing, we continue to really invest in this action emoji concept, which is very cool, because it allows people to express themselves without creating a snap. So as we look to empower self expression and remove the friction from self-expression sometimes people in the moment they don't necessarily want to create a snap and the Maps allows them to show that for example they are on a bike and listening to music [indiscernible] interactive around that behavior. So as far as the Maps is concerned very excited about it but still hidden behind a pinch dresser and we look forward to elevating the Maps in our product so that more people can find it easily. Obviously we are not going to provide guidance on DAU, but I think it is important to note, our audience may not be the largest today but we certainly feel that it's the most strategic. And very excited about the 70%, 13 to 34-year olds that we reach in the U.S., the U.K., France and Australia and I think that that is a really strong base to grow from because it's very easy to monetize and we will be able to fund our future growth in countries that maybe are harder to monetize in the short-term but that we believe will monetize in the longer term. So as I mentioned today, we are taking steps to change our product, and change our approach to grow outside of those key markets where we do think that there are future monetization opportunities. What we really want to make sure is that given the strategic nature of the 13 to 34 audience that was not yet -- that was really engaged with the Snap platform before we extended beyond our core.

Yeah. I think with regards to direct sales force versus auction, I think it's really important to understand that auction is a buying mechanism that lets our advertisers to come in and buy, test and learn either way their campaigns and see what drives better results. The value of our sales force remain incredibly high, primarily with the auction because the advertisers need to understand our platform and having insight what was on our platform, how to read on Snapchat, those kind of values that our sales force provide to our clients. So what we are saying is that as we make our buying platform more and more automotive, our sales force transition from taking orders to become more of a consultant for our clients to become partners. So that frees their time and they can focus more and more time solving client's business problem, because when you solve the client's business problem that drives really success. So I will share one quick example. So for example Activation, they wanted to test [shortfall] of ads on our platform, so it included this price in Snaps on our platform to work with our sales force and for their Call of Duty World War II title. And that was a 5 second cinemagraph ad, they worked with our creative strategy team and that drove 19 points lift in brand awareness, because our sales force had more time to work with the clients and give more insight and that really drove us to [indiscernible]. So I think that that's one of the -- another part example. So I think direct sales force has become enabler and become a consultant for our clients.

Our next question is from Richard Greenfield with BTIG. Please go ahead.

My guess is from a really high level. It seems like you have only been public for you know eight or nine months, it seems like a significant amount of change in a short period of time. I mean the auction seems to have surprised you, changing the apps making it easier for users. You are embracing [influencers]. Just when you look at the short period of time since the IPO where you seemed to be pretty upbeat, what's happened so fast -- what led to such a significant shift? And I guess maybe attached to that, is I guess for [every month], in the senior team you have assembled, not just on the call, but overall, is your senior team, the team really being a much bigger team or differently? And then just a housekeeping question on Spectacles, I think [indiscernible] comments about Spectacles were exceeding their expectation, yet today you are writing them off like three months of inventory. Just wondering, how you square exceeding expectations with the write-off will be helpful? Thanks.

Thanks, Rich. There has been a ton in change in a very short period of time and that's been the case over the life of the business in the last six years we have been in business. We continue to evolve the product very rapidly. We continue to evolve the business very rapidly and I guess we are just not afraid to make changes in the long term interest of the business. So I would expect that we continue learning as we grow the business and making changes that we think are in the best interests of growing the user base for revenue and ultimately providing our customers with a great product experience. As it relates to team dynamics, I am very happy with our executive team, but I am constantly evaluating our team, providing feedback and we are all working together to grow and trying to run the business in a productive way as possible. As it comes to Spectacles, you are right, we were very excited about Spectacles by the initial reception, because we were so excited we made I guess the wrong decision and we were balancing the trade off with [unit] economics of course that come with hardware. But ultimately we made the wrong decision based on the early traction and ordered a lot of long lead time products and ultimately we weren't able to sell as many Spectacles as we thought we had be able to based on our early adoption. So we are learning from it and we are kind of avoiding a similar mistake in the future.

Our next question is from Jason Helfstein with Oppenheimer. Please go ahead.

First, just about the brand advertisers, can you talk about how the annual budget cycle plays into it? It seems more and more budgets are being based on a calendar basis versus in the old days it was more of kind of on the school calendar. And kind of where you were at the beginning of this year, perhaps not in a position with measurements, some of the things that advertisers are demanding and kind of how that perhaps handicapped you this year but then how you stand going into next year as those budget decisions are being made? And then also how do you derisk the redesign of the apps and we know that your younger users are quite sensitive to the app that was originally designed for them? Thanks.

Yeah. I think in terms of advertisers' upfront deals and things like that, look I think, one of the key thing is to drive more upfront deals, we have to drive value for our advertisers and as our business is growing we are able to show more and more value. We are able to show more and more products, more and more measurements, more and more targeting and also we are going to cover them for a long term. Usually I think one of the biggest complaints I heard from a lot of our agency customers, that hey, we don't hear from your team more often, because we didn't have a big team. Now I think the investment we made on the headcount helps us to cover them, to look at them and help them to really show what success could look like on Snapchat and how to win on Snapchat. And I think that's driving and we are having more and more conversation about upfront and I think having much more deeper conversation with the agencies on what we can do together. So I think we are making good progress. I am pretty pleased with it. And on top of that we are onboarding a lot more new advertisers we couldn't reach on our reserve platform, because now it's opened up the opportunity to reach out to the performance advertisers and small and medium sized businesses.

And as it pertains to the redesign again we don't know exactly how that's going to play out, but we will be testing the product both internally, which is ongoing and externally and I think we are going to learn a lot from that. But fundamentally as we look at the product evolution at Snap, we really try to build products around the pieces and sometimes that means that there is an strong related option for a product. Like for example, our iconic storage products basically had no known use for the first six months or so. And so I think over time we have learned not to be fearful of making big product changes that we think are in the best interest of our community and we are going to keep going.

Our next question is from Mark May with Citi. Please go ahead.

Thanks and I apologize if it's already been asked. But trying to get a better handle on the impact that the growing auction based ad platform is having and will have on financials that we all see every quarter. Can you give us a general sense of the difference in the prices in that market today relative to your direct sold business? And also what portion of the overall revenue is generated from it? And obviously since you are trying to get to -- where are we -- in this transitional period as it relates to the trade-off between pricing pressure and in growing your advertiser base? Thanks.

Thanks for the question. So at a high level, the auction is a strategic move for the company. It's something that's important for our business as we move forward and we think it's the right way for us to be growing long-term and regarding our reach. The dynamics that we saw in the third quarter with the auction are consistent with what we saw in the second quarter and that is growth in revenue on the auctions platform driven by significant increases in impressions. So we saw impressions up 400% year-over-year and up over 60% sequentially. So that impression growth is real. On the flip side we did see that we moved from sort of a rate card pricing model to an auction-based model, we did see pressure in pricing. Sequentially prices were down 20% of the quarter and 60% year-over-year. So that was real. We did see -- well we see contestation and we see bidders -- multiple bidders for that same advertising space we get the prices that were 40% higher than places where we didn't have a contested auction. So that really bodes well for the future. Obviously one of our key strategies here is to really grow the competition within the auction and then have more advertisers using the platform that does bode well for where we are. So that's the auction platform, it's really the centerpiece of our Snap Ad business as migrate there. We were -- 60% of our ads were sold on that platform in the second quarter, it's now over 80% and as I talked about our commentary in the fourth-quarter it's going to be important as that transition continues. As we plan our business we are thinking about that transition continuing and we continue to see a bump in -- we are continuing to see a bump in impressions and there is continued pressure on pricing. So that's Snap to Snap Ads that is at a high-level. We also have that good one-two punch with creative tools, the create tool business is a good business for us and we made progress there as well.

Our next question is from Michael Nathanson with MoffettNathanson. Please go ahead.

Thanks. I have one for Drew and one for Evan. Following the answer to Mark's question can you draw down a bit on your high level view of the auction? Can you give [indiscernible] the rule of 80-20, so if 80% of the impressions were sold [dramatically], was it equal to in terms of advertising revenues as opposed to [indiscernible] revenues?

So at a high level the auction is a growing piece of our business. We haven't broken out the differences between Snap Ads and creative tools. I think we have talked about a good solid one-two punch, so both of them are important pieces of revenue. So that based on that you can get to like where you need to get to. If the majority of Snap Ads business right now is sold through the auction, more than 80% from an impression base, yeah its [sold] there. So it's an important and growing piece of our business, but in terms of quantifying the actual amount we are not going to do that.

And our last question will come from Youssef Squali with SunTrust. Please go ahead.

Thank you. Two questions, one for Imran and maybe one for Evan. Imran remind us again that for the budget timing of the launch of the programmatic platform was it Q4 of last year? Just trying to figure out exactly when do we lap that launch and when do we start having that maybe stop being a headwind. And then Evan you launched Context web -- I am sorry, Context Cards last quarter, can you speak to early learnings there and how this may help you leverage partners to provide users with more information and especially ability to trend that? Maybe if you can address that that will be great. Thanks.

Thank you for the questions. So with regards to timing, our API was the first partnership -- was the first initiative to start the business programmatically. That was launched in October of last year and then we expanded our API partnership in Q1 and then in late Q2 we launched our self-service platform. To give you a better sense as you are trying to understand the impact of our -- of this auction business over time, in my prepared remarks I talked about it that how auction volume for Snap Ads business as a percentage of overall Snap Ads business was over 80% and that is up 3x from Q1 and up from 60% in Q2, just to give you some sense.

Yeah. And as it pertains to Context Cards, very [solid] about it, initially Context Cards are focused on places and I think one of the coolest parts about Context Cards is that they leverage the behavior that's certainly known across our ecosystem where people swipe up on things that they are interested in to take an action, whether that's an ad or content posted by their friends or content that they see in Maps. And so we are leveraging this sort of [one] behavior swiping up to get more and obviously today it's only really around places, but we are very close to expand that to learning more about all sorts of things and something we are going to continue to listen.

This concludes our question-and-answer session as well as the conference. We thank you for attending today's session and you may now disconnect.