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The article says they had revenue of $59m in 2015, so A) they're not profitable and B) they probably aren't even thinking too hard about trying to be. For now,
by JonFish85 10y ago
The article says they had revenue of $59m in 2015, so A) they're not profitable and B) they probably aren't even thinking too hard about trying to be. For now, growth numbers are enough to get them buckets of cash, so that's most likely what they're focusing on.
- carleverett 10y agoGiven the context, the $59m revenue isn't that bad. They clearly just started trying to monetize in 2015, and averaged double revenue growth each quarter, finishing with over $120m run rate. The $250-$350m forecast for 2016 is completely reasonable. Hitting that target still means a 60x valuation (and props to Snapchat for getting that kind of valuation these days), but I don't think it takes a delusional investor to see Snapchat passing $1b in just another year or two, and soon going well beyond that.