Snap, parent company of popular messaging app Snapchat, is going public.
Here are six statistics from Snapchat’s IPO filing that marketers will find interesting.
1. 158 million people use Snapchat every day. The filing also revealed that 60 percent of its daily active users create snaps and use its chat service every day. Most of Snapchat’s users are between the ages of 18 and 34 years old.
2. User growth is slowing. As of June, Snapchat had 150 million daily active users. So that means in the last six months of 2016, Snapchat only added 8 million daily active users. According to the filing, Snapchat expects the growth rate of its user base to decline over time. Snapchat also noted that its core demographic “may be less brand loyal and more likely to follow trends than other demographics. These factors may lead users to switch to another product, which would negatively affect our user retention, growth, and engagement.”
3. Snapchat’s revenue skyrocketed in 2016 to $404.5 million. That’s up from $58.7 million in 2015.
4. Snapchat lost a ridiculous amount of money in 2016: $514.6 million. More than $100 million of this money went to research and development, including building its advertising platform.
5. Snapchat sells most of its own advertising. In 2016, 91 percent of Snapchat’s advertising came through direct sales. In 2015, that figure was 87 percent.
6. Users are spending 20-30+ minutes per day on Snapchat. On average, people age 25 and older visit Snapchat about 12 times per day and spend 20 minutes using it every day. Users under age 25 visit Snapchat more than 20 times per day and spend more than 30 minutes on it every day.
Image Credit: Depositphotos