Compare buybacks vs. dilution from stock comp over the last 3 years. State whether the share count is actually shrinking. Include stock issued to employees.SNAP
Based on the available data for Snap Inc. (SNAP), here's a comparison of share buybacks versus dilution from stock compensation over the last 3 years:
Share Buybacks vs. Stock-Based Dilution Analysis
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Shares Repurchased (Millions) | 105.2 | 18.4 | 27.9 |
| Stock Options Exercised (Millions) | 0.4 | 1.2 | 0.9 |
| RSU/RSA Vesting (Millions) | 58.3 | 86.6 | 70.2 |
| Total Employee Stock Issuance (Millions) | 58.7 | 87.8 | 71.1 |
| Net Impact (Repurchases - Issuance) | +46.5 | -69.4 | -43.2 |
| Stock-Based Compensation Expense ($USD Millions) | $1,369.4 | $1,323.1 | $1,041.0 |
Actual Share Count Changes
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Common Shares Outstanding (Millions) | 1,638.9 | 1,645.5 | 1,690.6 |
| Year-over-Year Change | +2% | +5% | +3% |
| Weighted Average Shares Outstanding (Millions) | 1,608.3 | 1,612.5 | 1,659.1 |
Key Findings:
The share count is NOT actually shrinking. Despite significant buybacks, dilution from employee stock compensation has outpaced repurchases in 2023 and 2024:
- 2022: Net share reduction of 46.5 million due to aggressive $1 billion buyback program
- 2023: Net share increase of 69.4 million as buybacks slowed significantly while employee equity grants remained high
- 2024: Net share increase of 43.2 million, with moderate buybacks insufficient to offset continued dilution
The company's share count has grown from 1,638.9 million to 1,690.6 million over the three-year period, representing a 51.7 million share increase despite spending substantial amounts on buybacks. Stock-based compensation expense has remained elevated, totaling over $3.7 billion across the three years, driving continued dilution through employee stock issuance.