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 and 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’s Sam Biddle detailing Snapchat’s accounts from last year show that huge popularity doesn’t necessarily translate across to huge profits.
The $20 billion valued company is actually a long way from being profitable…
According to the figures, the company lost $128 million in 2014 and generated a just $3 million.
The largest expense they incurred apart from an astronomical wage bill, were $47 million spent on product and $13 million 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 $3 million collected came in the final three few months of 2014.
If these figures are correct it’s a good thing they’ve over $320 million available to them in cash savings…
Hat-tip to gawker.
LISTEN: You Must Be Jokin’ podcast – listen to the latest episode now!
