If you assumed they’d be rolling in money, you’d be wrong…
Chances are you’ve used Snapchat at some stage in your life, or at the very least heard about it. If you haven’t you’re probably in the minority as the app continues to go from strength to strength in the popularity stakes.
But figures obtained by Gawker detailing Snapchat’s accounts from last year show this huge popularity doesn’t necessarily translate to huge profits.
The $20billion-valued company is actually a long way from being profitable…
According to the figures, the company lost $128 million in 2014 and generated just $3 million in revenue.
The largest expenses they incurred (apart from an astronomical wage bill), were $47million spent on product and $13million spent on ‘outside services’.
It must be said that Snapchat didn’t attempt to to generate any revenue before October of last year so that means that the majority of the the $3million collected came in the final few months of 2014.
If these figures are correct, it’s a good thing they’ve over $320million available to them in cash savings…
