Snapchat was hemorrhaging money in 2014

Snapchat was hemorrhaging money in 2014
Valued at $15 billion by venture capitalists, it appears that Snapchat has a long way to go before it is even remotely profitable.

According to a new report, Snapchat lost $128 million between January and November 2014 while only bringing in $3 million in revenue. That being said, the company only started ads last October, so the revenue could be much higher this year but there is evidence to the contrary.



Snapchat's new killer feature, 'Discover,' which allows media properties to offer micro-broadcasts saw a huge surge in popularity when it launched, but traffic (and ad revenue) have both fallen off a cliff since then, says the report. Snapchat was allegedly asking for $750,000 per day from advertisers but has since dropped their rates to just $20 per 1000 views.

Only in a tech bubble could a company with no chance of ever being profitable be valued at $15 billion.



Source:
Gawker


Written by: Andre Yoskowitz @ 19 Aug 2015 22:06
Tags
Startup quarterly earnings Snapchat
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  • 3 comments
  • hearme0

    Agreed with last statement.

    This company is a flop. So are so many that become overtly over-inflated.......Facebook is part of this.

    Just because it's viewed by so many, doesn't mean they are also paying any attention to it.

    Minds have been conditioned to ignore the unwanted 'extras' and ads in apps.

    20.8.2015 16:20 #1

  • adre02

    Yeqh but FB has many other avenues to stay alive much longer than something like snapchat.

    This is superman

    21.8.2015 10:36 #2

  • hearme0

    Originally posted by adre02: Yeqh but FB has many other avenues to stay alive much longer than something like snapchat. Sadly that's true. People want to connect to others and before this is was Classmates.com that cost a pretty penny to be part of. FB unfort. covers this and then some.

    I don't care for FB and therefore don't have an account or use it but once in a great referencing moon.

    22.8.2015 12:04 #3

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