Thank you, Evan.
We're pleased with our results for this quarter amidst a challenging and rapidly evolving global health crisis. And we continue to see significant upside and opportunity for our business as we support our community and advertising partners through this difficult time.
In Q1, we generated total revenue of $462 million, an increase of 44% year-over-year and consistent with our year-over-year growth rate in Q4 of last year.
We are confident that our business is well positioned for long-term success evidenced by the high revenue growth rates we achieved in the first two months of the quarter, as well as our continued growth in the final month of Q1.
The global outbreak of COVID-19 has dramatically shifted the ways brands are thinking about reaching new audiences.
While friends and families are physically separated from each other in their regular routines, Snapchatters are coming together virtually to maintain their friendships through visual communication, self expression and storytelling.
Our sales teams have been focused on helping our brand partners craft thoughtful messages and create valuable experiences for Snapchatters during these difficult times.
We are partnering with brands on how to best speak with the Snapchat generation and help them discover new products and services as they spend more time at home and online.
We have identified many opportunities and we know that Snapchat is a destination where people will discover brands for the first time as the global health crisis changes their buying behaviors. With this understanding, our team has pivoted quickly to focusing our sales resources on categories that are best positioned in the current environment, such as gaming, home entertainment, ecommerce and consumer packaged goods, while also helping industries that have experienced outsized impacts to build long-term roadmaps to recovery.
We have the opportunity to work closely with Adidas to adapt a new campaign for Snapchat in response to the growing number of stay at home orders moving through Europe. With this in mind, Adidas booked a national filter across the U.K. and Germany. They complimented this with audience filters and commercials across other markets to encourage Snapchatters to stay home and to offer them creative, fit and fun ways to stay active during this period.
Our team worked quickly with Adidas to help create their hashtag home team campaign within 24 hours, with the filter being viewed more than 14 million times across the U.K. and Germany.
Our large audience, creative formats and advanced measurement tools provide a significant opportunity for brands such as Adidas to reach Snapchatters during these challenging and unprecedented times.
Our team has also been working to provide useful products and resources for businesses as they manage the current economic landscape. We made our self serve tools more accessible than ever have lower minimum spends and are experimenting with local ad formats such as swipe to call, which we first launched in MENA specifically for local businesses and have now expanded to the U.S. this quarter.
As evidenced by our strong performance in Q1, advertisers value our large unduplicated and hard to reach audience. In the U.S., we continue to reach more than 90% of 13 to 24 year olds, and more than 75% of 13 to 34 year olds. In our more established international locales such as the U.K., France, Canada and Australia, we reached more than 80% of 13 to 24 year olds and more than 60% of 13 to 34 year olds.
We're also growing rapidly in other international markets such as India, where we have recently been investing both time and resources to engage and grow our Snapchat community.
Members of the Snapchat generation are the consumers of the future have significant lifetime values for our advertising partners and are in the process of building brand loyalties which makes our audience extremely attractive to advertisers.
While, advertiser demand has been disrupted by the COVID-19 pandemic, we remain focused on making progress against our ARPU opportunity through our three key priorities.
First, improving our ranking, optimization and measurement to drive relevance and deliver ROI.
Second, building on our sales and marketing functions to support the needs of our advertising partners around the world. And third, delivering innovative ad experiences through video and augmented reality that deliver real business value.
Our three priorities along with our unique reach and growing global audience, allow us to drive performance at scale for businesses around the world. We've been investing in our first priority of improving ranking, optimization and measurement since 2016, when our team made a difficult and deliberate decision to transition our ad business to an auction-based self serve platform. In the subsequent years, we invested heavily in performance oriented products and services.
As a result, we have made remarkable progress with advertisers looking to drive consistent, measurable ROI, launching dozens of new features over the last two years, such as bid optimizations for conversion events like app installs, as well as advanced targeting and measurement capabilities. This has helped scale our direct response revenue in particular, which has more than doubled as a share of our total ad revenue over the last two years. Consequently, this strategy has put us in a strong position for this immediate crisis, as well as to continue to take share of the digital ad market on the road to recovery.
For example, advertisers such as Plarium, creators of the mobile game Vikings: War of Clans are finding that Snapchat is a unique and powerful way for marketers to engage with millennials and Gen Z, which control over $1 trillion in direct spending power and have grown up with using their mobile phones. Noam Sagie, Director of Marketing at Plarium said "Plarium's work with Snapchat is aimed at growing our penetration with the Gen Z and millennial audiences measured on profitability. We integrated with Snapchat's API and developed a technology for accurately reaching potential players. We heavily invested in the creative customization of our ads focused on bidding with purchase optimization. Between Q2 2019 and Q1 2020, Plarium has grown at Snapchat quarterly investment by 310%. Players coming from Snapchat are 30% better than Plarium's average in terms of seven day retention rates. Also, these players have significantly higher intent than the average player to convert from the free version of the app to paying users."
We are finding that more and more advertisers are adopting our down funnel products such as pixel and app purchase bidding, which is continuing to drive meaningful return on ad spend for performance oriented advertisers. Revenue from pixel and app purchase objectives have doubled year-over-year and we continue to see huge opportunity with direct response advertisers as we are able to translate measurement and optimization improvements into meaningful conversions for advertisers.
Our second priority is to grow demand through better service of our advertising partners. The structural improvements we have made to our sales team and sales operations over the past year have enabled us to better support our advertising partners and improve advertiser demand. This includes building teams to work with not only our largest global advertisers, but also performance oriented advertisers who are scaling their games or ecommerce businesses.
We are all excited to build on this momentum with Peter Naylor as our new VP of the Americas who will join Snap in early May.
Our teams are well aligned and have begun to go deep with verticals where we believe we can deliver strong performance in ROI due to the characteristics of our audience and how they use our service. One leading indicator of the success of our sales team reorganization is that we have doubled the amount of money committed via upfronts in 2020 versus 2019. This is an indication that brands and agencies have confidence in our platform and advertisers are committed to working with us in an always on way, given the return on advertising spends that they're experiencing.
Our third priority is to lead the way with innovative advertising products and services.
We continue to invest heavily in innovative solutions that leverage our content and augmented reality platforms in order to drive better outcomes for advertisers and delight our Snapchat community.
As an example, e.l.f. cosmetics CMO, Kory Marchisotto said, "Our business is growing and our message is clearly resonating with Snaps core Gen Z and millennial audience. In partnership with our media agency [indiscernible], we utilize Snap ads to efficiently help our consumers shop for new eye, lip, face and skincare products and implemented dynamic ads to further optimize and personalize our ads for customers.
We continue to innovate and optimize across Snap ecosystem which has led to significant drops in CPAs, one of our priority performance marketing objectives."
The continued rise of mobile content consumption, especially on mobile native premium formats presents us with a growing opportunity.
Our market position as a leading platform focused on premium mobile video provides us better insights and data about what performs well on mobile devices. And over the last year, we have doubled down on our video advertising solutions with a robust rollout of products for video buyers.
For example, we have been increasingly focused on our Snap Select offering for premium video ads. Snap Select allows brands to reserve our commercial video product within select discover shows at a predictable fixed price. It's designed for both social video and online video buyers and has the potential to attract incremental online video and TV budgets into our hand curated brand safe environment.
As Evan mentioned, we are seeing continued success with our augmented reality platform. We believe that augmented reality is the future of computing and holds tremendous potential for experiential, immersive advertising.
Our self serve AR buying tools have been scaling quickly since their launch less than two years ago, and we believe that advertisers will grow with their investment in our ad platform as we continue driving new AR ad products, market education and robust measurement. Self service is the dominant way our advertisers buy AR, which supports the investments we're making to improve lens studio and democratize the creation process.
We are at the beginning of building out our AR ecosystem and providing additional value beyond paid media.
For example, in response to the global health crisis, we launched our first ever fundraising AR lens which uses our skin camera search technology to drive donations from 33 countries to the World Health Organization's COVID-19 solidarity response funds. We enable the camera to recognize 23 currency notes to trigger different lenses for each currency, with each experience visually representing how your money is raised and transformed into the three pillars of the fund. A hospital to represent patient care, a mask to represent medical supplies, and beakers to represent research and development turning physical items such as dollar bills that are a part of Snapchatters everyday lives into calls to action through immersive AR is a unique way to connect with our audience and an important milestone for this technology.
We entered 2020 with a full featured ad platform and a sales team structured to support our business and we pivoted quickly to support our community and partners as the COVID-19 pandemics disrupted the global economy.
We will continue to invest for the long-term and making product and marketplace improvements to help advertisers scale, building focused relationships with brands and agencies across verticals, and improving our direct response products for performance-centric businesses.
Based on the size of our audience, their levels of engagement across our service and our overall opportunity in the growing digital advertising market, we are well positioned to play an important role in driving the recovery of businesses across the world.
With that, I'll turn the call over to Derek.