Hi, everyone, and welcome to our call. We're proud of the results that our team delivered this quarter. We added 13 million daily active users, our highest net add since the second quarter of 2016, bringing our daily active users to 203 million.
The average number of Snaps created every day grew to more than 3.5 billion this quarter, and average time spent per user was over 30 minutes per day.
Our revenue growth rate accelerated both quarter-over-quarter and year-over-year to 48%, yielding $388 million in total revenue for the quarter. This growth in our community, engagement and revenue is the result of several transitions we completed over the past 18 months.
Early last year, we redesigned our application to emphasize the importance of communicating with real friends and create a space for premium content. We rebuilt our Android application to reach broader audience, built a self-serve advertising platform to reach more advertisers and transitioned our leadership to support our growing team.
In addition to delivering improved business results, we have built a company culture that reflects our long-held values of being kind, smart and creative. Completing these transitions has established a strong foundation for growing our community, increasing engagement and growing advertiser demand.
Our team is hard at work making significant progress against each of these areas.
We have driven the growth of our community by making Snapchat a fast and fun way to communicate with real friends.
Following last year's substantial product evolution, we believe that we are now better positioned for long-term success.
Today, more than 75% of the 13 to 34-year-old population in the United States is active on Snapchat, making us larger than services like Facebook and Instagram among this audience and demonstrating the broad-based appeal of our service.
We have also observed that communicating visually with real friends on Snapchat provides long-term value for our community.
For example, Snapchatters in the United States who joined 5 years ago and were active at the end of their first year have retained at more than a 95% annualized rate. We believe this high retention rate underscores the important role Snapchat plays in the lives of the people who use our products.
We've built a strong base with high penetration and retention in core markets like the United States, and we're hard at work bringing the Snapchat experience to a broader community around the world.
We are seeing early positive results following the rollout of our new Android application, with more than a 10% increase in the retention rate of people who open Snapchat for the first time.
Furthermore, on the majority of Android devices used by new users, Snapchatters are now sending 7% more Snaps when compared to the old version, which we believe is an important leading indicator of their long-term retention.
We have also partnered with global telcos that serve more than 1 billion customers to help our community better manage the costs of Snapchat usage, and we launched 8 new languages so far in 2019 that are spoken by over 750 million people worldwide.
We have never been more excited about our opportunity to build a global community.
Our redesigned application helps new Snapchatters adopt retentive behaviors like talking with their real friends.
Our rebuilt Android application provides a vastly improved experience across billions of devices, and our self-serve advertising business has driven accelerating revenue growth that can support a growing community around the world.
Meanwhile, we are also working to deepen engagement across Snapchat.
Now that we have built a strong underlying foundation for our service, we are well positioned to continue investing in key areas like our content platform, our augmented reality platform and our gaming platform.
These efforts support our mission of empowering people to express themselves, live in the moment, learn about the world and have fun together, which in turn will help drive the long-term growth of our business.
We are working hard to grow a made-for-mobile content platform that serves our community, content creators and advertisers.
Our content partners are growing in both number and quality as our platform matures and as their experience on Snapchat has helped them become more effective mobile storytellers.
For example, ESPN started out as a text-heavy Publisher Story when we first launched Discover. They have since transitioned to full-screen vertical video with SportsCenter and are now expanding their sports coverage on Discover to 4 different shows.
We are also continuing to evolve the product experience for this expanding slate of content.
For example, we improved content discovery through better ranking to help our community find content that appeals to them and facilitated loyalty through products like Show Profiles, where people can browse past seasons and manage their subscriptions.
We are focused on building loyalty and repeat engagement with our Shows, and we saw more than 90% of Snapchatters who completed the first season of Endless Summer, a Snap Original produced by Bunim/Murray Productions, go on to watch Season 2 in its first month.
As a result of our investments in our content platform, total daily time spent by Snapchatters watching Discover increased by over 60% year-over-year, while the number of daily viewers has grown by 35% year-over-year. This was driven by the additional content we added to our platform over the past year as well as changes we made to our platform to prioritize depth of engagement.
By investing in premium content, we are seeing the quality of our platform improve, in addition to increasing engagement with longer-form content. We believe this is best for the overall health of our content business.
We are also improving our advertising offering to better support our content platform. Building upon the success of our Shows format, we recently announced the launch of Snap Select, a new way for advertisers to run Commercials within a curated set of our Shows programming.
This is an example of a product evolution that serves both our advertisers and our content partners while strengthening our overall platform by generating revenue that we can reinvest into better serving our community.
Augmented reality has become a daily behavior for the vast majority of our community because Snapchat opens into the camera.
Our strategy is to continue driving innovation in fundamental AR technology while building a platform for creators and partners to power augmented reality experiences for our community.
We recently launched the next generation of AR Lenses, which leverage our experience with the mobile camera as well as our ongoing investment in research and innovation. These new Lenses use deep neural networks to modify a person's appearance in real time, and we're well received by our community with over 200 million people playing with these new Lenses in the first 2 weeks.
We continue to invest in Lens Studio, our desktop application for creating augmented reality experiences. With Lens Studio, we're making the AR creation process easier while simultaneously providing more sophisticated tools in order to unlock the creativity of our community.
We launched Lens Studio 2.0 at the beginning of the quarter to introduce Landmarkers, a new tool for overlaying augmented reality on the world and a variety of other capabilities. The number of people submitting new Lenses every month grew by more than 20% from the prior quarter, and we love seeing the new experiences created by our community as we continue to add new templates and capabilities.
We're also supporting our creator community with new in-app features like creator profiles so that people can follow their favorite Lens creators, view their portfolio of Lenses and get notified about their latest creations. We saw more engagement with Lenses created by our community in Q2 2019 than the entirety of 2018, and we are continuing to invest in improving both the creation process and the discovery of these community Lenses. We believe that investing in fundamental long-term innovation and supporting a vibrant creator platform will help us continue to lead the way in augmented reality.
Our newly launched gaming platform is off to a great start. In the past 4 months, we have worked with our partners to release 7 new premium games for our community, including 3 games that allow Snapchatters to play as their Bitmoji. We designed our gaming platform to support gameplay with real friends and are excited to see early results showing the value of these social interactions.
For example, we see a direct correlation between the number of friends playing a game together and their time spent playing games.
While we are just getting started building out our new gaming platform, we are learning a lot and can't wait to continue evolving the platform to serve our partners and community.
Our advertising business is gaining momentum following the transitions we have made in our business.
Over the past few years, we have built a large and unique audience, created effective and engaging mobile ad units and migrated to a self-serve monetization platform. We're now working on scaling demand on our platform by helping advertisers of all types and sizes generate returns on their ad spend.
On the front end, we are developing services and partnerships to make it easier for advertisers to create and buy ads, and we are seeing positive momentum with vertical video and stories as the broader industry moves to adopt the mobile ad formats that we have pioneered.
On the back end, we have dramatically improved our optimization engine in order to better meet a variety of campaign goals, whether advertisers are trying to efficiently reach a large audience or drive high-quality conversions. These changes have broadened the; types of; advertisers and campaigns that find success on our platform and have led to increased budgets.
For example, with the launch of conversion optimization less than 1 year ago, we are now accessing uncapped performance budgets from some of our largest advertisers that are limited only by the return on investment that we are able to deliver.
As we see advertisers increase their budgets in response to these improved returns, we are also putting effort into scaling the number of advertisers on our platform.
I want to briefly step back and highlight how our different efforts across Snap work together to drive our long-term growth strategy.
This quarter offers a great example.
Our significant investments in innovation have helped us build a scaled augmented reality platform and deliver cutting-edge technology like the new Lenses powered by deep neural networks that we launched in May.
The popularity of these Lenses drew millions of people into our rebuilt Android application, where they experienced the new and improved Snapchat that led to increased engagement. The enhancements we have made to our advertising business and self-serve platform meant that we were better able to monetize this increased engagement, leading to accelerating revenue growth.
Our team is at our best when we combine creativity, technical innovation and operational excellence to deliver new experiences for our community and make those experiences available as widely as possible.
This quarter demonstrated our ability to work together as a team across many disciplines to deliver great results.
Our accelerating top line growth in daily active users, engagement and revenue is translating into significant improvements in our financial performance.
Our total cost structure per daily active user grew less than 1% year-over-year, meaning that nearly all of our revenue growth flowed through to the bottom line and resulted in a 53% year-over-year improvement in adjusted EBITDA.
As we approach our stretch goal of adjusted EBITDA breakeven, we are excited about dedicating more resources toward investing in innovation while maintaining a high degree of operational rigor.
We are so excited about our opportunity to reinvent the camera and achieve our vision of overlaying computing on the world, and our rapidly improving business results will allow us to move faster to better serve our community in the future.
Our team is collaborating well together, supporting one another, and we are all committed to making a positive difference in the lives of the people who use our products.
Before I hand things over to Jeremi and Derek, I want to welcome Kenny Mitchell, who joined us recently as our first Chief Marketing Officer. We look forward to bringing his deep experience with McDonald's and Gatorade to build our marketing strategy moving forward.
In addition, I want to welcome Derek into his new role as our Chief Financial Officer and Lara as our new Chief People Officer. Both Derek and Lara have been strong leaders at Snap for some time, and I look forward to the continued positive impact they will bring to our team and business.
With that, I'll turn the call over to Jeremi to share more about our advertising business.