Goldman Sachs, one of the lead banks on Snap’s initial public offering, estimates that revenues for the company could hit nearly $US2 billion in 2018 — nearly five times last year’s revenues.
The information was relayed to Business Insider by somebody who had been briefed on the bank’s research estimates. The figures are being cited by Goldman’s sales force when speaking with potential investors, the person said.
A key question for investors is how much Snap, a social network app known for its disappearing photos, will grow its user base. Goldman estimates that the company could grow its daily average users to 221 million in 2018, up from 158 million as of last year.
Here are the side-by-side comparisons:
- 2016 revenues: $US404 million
- 2018 revenues (projected): $US1.959 billion
- 2016 daily average users: 158 million
- 2018 daily average users (projected): 221 million
Snap hit the road last week in its official tour with potential investors for its intial public stock offering, which is slated for March. The company’s execs met with New York investors earlier Tuesday and are plannig to tour several other cities this week, according to an invitation reviewed by Business Insider.
Get the latest Goldman Sachs stock price here.
NOW WATCH: JEFF SACHS: Here are the fiscal policies we need to implement so robots don’t take our jobs
Business Insider Emails & Alerts
Site highlights each day to your inbox.