Costs are growing faster...

                                Q4 2022   Q4 2021
  Cost of revenue               481,311   449,151
  Research and development      584,942   434,195
  Sales and marketing           295,150   245,228
  General and administrative    225,929   194,438
  Total costs and expenses    1,587,332 1,323,012

Hard to believe how much they’re expanding the team given the financial situation. They’ve gotta be thinking it’s time to be making money here

Seems like the biggest change between those two quarters is stock based compensation expense?

Yes. Stock based compensation expense Q422 $446M vs. Q421 $297M. (up 50% YoY)

So they're not losing any actual cash. How's their FCF?

Right in the first section: “ Free Cash Flow3 was $78 million in Q4 2022, compared to $161 million in Q4 2021.”

FCF is a poor metric to use for RSU/option heavy tech companies.

Stock based comp directly dilutes shareholders, and using FCF hides the profitability hole that SBC creates for many of these companies.

FCF is more relevant for companies where net income adjustments are largely one time or moreso accounting gimmicky (depreciating real estate/assets to show a GAAP loss etc). SBC dilution is very real

This. SNAP has been a publicly traded company for 6 years, one cannot just ignore and hand wave away this expense, especially given how much growth prospects have deteriorated.

I don't care about shareholders here, just their cash burn rate.

Well, they can materialize more cash at any time by issuing shares or raising debt. They're well above a fundamentally based fair value share price.

So not sure why FCF matters from your perspective. They could clearly become net income positive by reducing costs, if it became necessary

You can’t really look at numbers like that to paint a full picture.

Net income in particular is sensitive to one time events.

In this case, imo, it looks like the most important story is that revenue per user is falling hard. 17% more users. -15% revenue per user. Revenues are falling in North America and they have to try and make up for it by targeting the rest of the world.