Remember when Snapchat turned down $3 billion worth of a buyout offer from Facebook back in 2013? Well that's increasingly looking like and idiotic decision.
The company's internal financials were obtained by Gawker this week, and it would seem that the popular photo messaging app lost $128 million between January and November in 2014, while only pulling in $3 million in revenue.
While the company only started its ad program in October, which would mean it missed out on about ten months worth of ad revenue, even if you multiply their income by those missing months, you'll still come up far short of $128.
Luckily for Snapchat, they have over $300 million of cash in their accounts, so they should be able to ride out this tricky financial period.
And according to Mike Dempsey of CB Insights, a venture capital analytics firm, it's not quite crisis time just yet, as he claimed that while the loss was "big for 11 months, but not outrageous”.
“If Snapchat is at a similar point right now in its business lifecycle as 2012-2013 Twitter, the new funding probably gives them a multi-year runway”.
It's also important to note that these figures don't include the new Discover feature, as it only launched in January, which could be a significant earner in terms of advertising.
