Snapchat’s financials for 2014 are out, and they’re pretty much as expected.
The 2014 snapshot was obtained by Gawker’s Sam Biddle.
Unsurprisingly, Snapchat is far from profitable. Many growing tech startups are in the red, and some even go public before they’re profitable. Uber’s financials were recently leaked by Gawker and it too is severely unprofitable which led the company to release a statement: “Shock, horror, Uber makes a loss.”
According to financials obtained by Gawker’s Sam Biddle, the company lost $US128 million last year and only generated $US3 million, up presumably from $US0 the year prior.
The startup didn’t try to generate revenue until late 2014, so that $US3 million was likely all collected during the last few months of the year. Its Discover product, where advertisers are spending the most dollars on Snapchat, didn’t launch until January 2015, so its performance isn’t included in this financial snapshot.
That’s not to say Snapchat hasn’t struggled some on the monetisation front. It has had a lot of turnover on its business side, losing key executives like former Instagram chief Emily White as its COO. Advertisers also complained that Snapchat was charging too much money for its largely-teen audience, and the company has since adjusted its rates.
Fortunately, Snapchat is doing a good job of managing its cash. The startup currently has more than $US320 million in cash, according to Biddle’s document.
Here’s a more detailed of Snapchat’s 2014 balance sheet.
Snapchat has not yet returned a request for comment.