After months of speculation, Snap Inc. has finally filed its initial public offering, giving investors and marketers insight into the company’s financials and user stats.
As the app has geared up to go public, advertising has been key for proving to both Wall Street and agencies that it can live up to its reported more than $25 billion valuation when it goes public in March.
“The failure to attract new advertisers, the loss of advertisers, or a reduction in how much they spend could seriously harm our business,” reads the Security and Exchange Commission filing.
Here are seven big stats that should be particularly interesting for marketers from the SEC filing.
1. Snap Inc. made $404.5 million in revenue during 2016, up from $58.7 million in 2015. In the fourth quarter, Snap netted $165.7 in revenue with $145.4 of that coming from the U.S.
2. When breaking that revenue down, Snap made an average of $1.05 per user in the last quarter of 2016, up from 65 cents in 2015.
3. Snapchat has 158 million daily users. According to the SEC filing, daily active users grew from 143 million in June to 153 million by September, equivalent to 7 percent.
The app also acknowledged that its quick growth over the past couple of years may not last, while also taking a slight jab at Instagram, which copied the app’s stories feature last year.
“There are many factors that could negatively affect user retention, growth, and engagement, including if users increasingly engage with competing products instead of ours [or] our competitors may mimic our products and therefore harm our user engagement and growth,” Snap said in its report.
4. There are 69 million daily active users in the U.S., with another 53 million in Europe and 39 million in other parts of the world.
5. Per the filing, Snap lost $514.6 million last year, an increase from $372.9 million in 2015.
6. More than 2.5 billion “snaps” are created and sent every day through the app.
7. Sixty percent of Snapchat’s daily users use the app’s chat feature to send photos and videos. Moreover, the average daily user opens Snapchat more than 18 times every day.
When zeroing in on users 25 years or older, that demo uses the app 12 times and spend 20 minutes per day with it. Those younger than 25 open the app more than 20 times a day, spending 30 minutes with content.