More Money, More Problems? Snapchat's Losses Have Widened As Its Sales Have Grown

A Disappearing Act?

Throughout 2016 Snap lost $515 million, marking an increase from the $373 million the company lost in the prior year. On the other hand, revenue soared nearly seven-fold from 2015 to 2016 to $404 million and advertising revenue represented 96 percent of total revenue.

Granted, Snap is a young company and its business was built essentially from scratch in just a few short years. Nevertheless, Statista suggested that investors keep in mind the company's disclaimer in the business risk section of its prospectus, which reads: "We have incurred operating losses in the past, expect to incur operating losses in the future, and may never achieve or maintain profitability."

Revenue And Net Losses Per Quarter

Here is a look at Snap's revenue and net loss per quarter going back to Q1 of 2015:

• Q1, 2015: Revenue $4 million, net loss $99 million.
• Q2, 2015: Revenue $5 million, net loss $80 million.
• Q3, 2015: Revenue $17 million, net loss $97 million.
• Q4, 2015: Revenue $33 million, net loss $98 million.
• Q1, 2016: Revenue $39 million, net loss $105 million.
• Q2, 2016: Revenue 72 million, net loss $116 million.
• Q3, 2016: Revenue $128 million, net loss $124 million.
• Q4, 2016: Revenue $166 million, net loss $170 million.