Interesting Reveals From Snapchat’s IPO
08 February, 2017 | Social media
Snap, Snapchat’s parent company, is going public and their IPO filing has revealed a lot of surprising facts regarding the popular image messaging app.
Here are 8 statistics that are very interesting and quite surprising from Snapchat’s IPO filing:
1) Active Daily Users
158 million people use Snapchat on a daily basis. The IPO filing also revealed that 60% of their daily active users create snaps as well as use the chat service every day.
2) User Demographic
Unsurprisingly, the app is still dominant for the younger generations with the majority of Snapchat users falling into the 18-34 year old category.
As of the end of the fourth quarter 2016, the average amount of snaps per day was 2.5 billion!
As of June 2016, Snapchat had 150 million daily active users; this means that Snapchat only added 8 million daily active users in 8 months.
Snapchat has said that they expect the growth rate of its users to decline over time due to a number of reasons. They also said 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.”
According to the IPO filing, Snapchat’s revenue increase by $345.8 million from $58.7 million in 2015 to $404.5 million in 2016.
Surprisingly, 91% of Snapchat’s advertising came through direct sales. This is up from 87% in 2015.
7) Huge Loss
Snapchat spends a huge amount of money (over $100 million) on research and development, which included the building of their advertising platform. Overall they lost $514.6 million in 2016.
On average, Snapchat users are spending 20-30+ minutes on the app every day.
People aged 25 and over visit the app on average 12 times a day and can spend up to 20 minutes using it.
Snapchat users under 25 on average visit the app more than 20 times a day and spend more than 30 minutes on the app daily.