Snapchat is one of the fastest growing social networking platforms out there. The platform has been around for a short while but is rivaling sites such as Twitter that is having a hard time attracting new users. Snapchat on the other hand is the platform most millennials are joining and this has led to exponential growth in both the total number of users signing up and those actively using the site.
With many people flocking to use the platform, Snapchat is a very valuable company. According to a report by the Bloomberg, Snapchat will be looking to raise about $4 billion during its first initial public offer (IPO). This is quite a huge figure considering that it represents a fraction of its total value.
The Bloomberg is quoting sources familiar with the matter who are saying that Snapchat could be valued anywhere between $25 billion and $35 billion when this IPO goes through. This is a huge figure for an application that was not around 6 years ago.
As if the $35 billion valuation is not high, some sources are even saying that Snapchat could be worth more than that. They are saying that the platform could be worth as much as $40 billion.
The Bloomberg went ahead and clarified that the final value might change between now and when the IPO goes live. The publication says the final decision has not been made and that is why we might see changes in valuation.
Revenue Not So High
The Bloomberg has gone ahead and revealed that Snapchat’s yearly revenue is currently less than $1 billion. The company has been looking for ways to monetize its platform and investors will be looking at some of the revenue streams the company has to see it is a good buy or not.
Also Read: The Number of Daily Active Users On Snapchat Crosses The 150-Million-Mark Surpassing Twitter’s 140 Million Users