the "fortune" magazine online edition wrote today, although Snapchat revenue last year was only $60 million, but was able to get up to $20 billion valuation, mainly because the company’s subscriber growth is still fast, revenue potential is huge.
below is the full text of the article:
those who think the tech bubble is about to burst will surely find a target, and Snapchat seems to be the first choice for many. With the media exposure on Thursday, the video sharing social network has just completed a $20 billion valuation of $1 billion 800 million financing, this position will only further strengthen.
How can a company with $60 million in revenues of $20 billion cost more than 250 times the market price of
? This is definitely a bubble, you know, Facebook market sales rate is only about 17 times.
, however, the calculation of a company’s valuation is not just so simple arithmetic. The most important consideration is the growth curve of the company. If it is a social application, it is very dependent on the network effect, so the key depends on the number of active users and interactive time, as well as the growth rate of these indicators, and the key to look at the revenue trend. Or rather, many investors are keen to use the forecast revenue to be valued.
for this reason, Snapchat’s theoretical valuation and the actual valuation of Twitter there is such a big difference between the latter’s number of active users in the same day for 100 million people, but the market value of only $10 billion. Snapchat financing materials show that the company’s total number of users grew by 50% last year, Twitter growth is negligible.
In other words, because Snapchat users are still on the increase, so even if Twitter revenue of $2 billion 200 million last year, reaching Snapcht of 35 times, but investors are more optimistic about the latter.
in fact, the last quarter of Snapchat until 2015 began to try through sponsorship revenue filters. So, most of the $60 million revenue comes from the fourth quarter of last year. For this reason, they are expected to revenue between 250 million to $350 million this year, up to $1 billion in 2017 – according to this calculation, the current real sales rate of only 20 times.
of course, these data are just speculation. Snapchat may launch a number of ways to make people hate the revenue, resulting in a large number of users to flee; advertisers may not like the company’s pricing, resulting in a substantial price reduction. Or, Snapchat can launch more similar to that of the Taco Bell "sponsored filters, this filter is used up to 224 million times the number of.
but Snapchat’s current revenue seems to be growing rapidly this year, it is possible to achieve