Snapchat’s Active User Base Continues to Grow
Findings come in the wake of reports that Snapchat has raised $1.8 billion in funding.
It seems that Snapchat continues to justify the hype surrounding it, as its daily active users continue to increase and speculation abounds that the mobile app may have already surpassed Twitter in this regard.
A report from Statista, referencing data from TechCrunch, revealed that Snapchat’s daily active users has grown nearly 50 percent in the last year—and nearly doubled since March 2014—to 110 million as of last December.
The company has seen a steady increase in the number of daily active users, growing by at least 6 million users per quarter from March 2014 to December 2015. The largest jump in users—11 million—came in the fourth quarter of 2015.
The release of this data comes in the wake of a report last week that Snapchat raised $1.81 billion in funding from various investors, according to a Securities and Exchange Commission file. TechCrunch discovered that General Atlantic, Sequoia Capital, T. Rowe Price, Lone Pine, Glade Brook Capital, IVP, Coatue Management, and Fidelity are among the investors.
This new round of funds brings the company’s total funding since 2011 to more than $2.6 billion and its current valuation to an estimated $20 billion.
However, Snapchat only brought in $59 million in revenue in 2015.
While one might question why investors are funneling so much money into Snapchat considering this revenue intake, it is more understandable considering the brand only recently started its monetization efforts last year.
According to TechCrunch, there were no real monetization efforts in the beginning of 2015. In the first quarter of 2015, the company only brought in $4 million in revenue, growing slightly to $5 million in the second quarter. The data reveals a large increase in revenue in quarter three, with the mobile app company bringing in $17 million. Revenue nearly doubled in the last quarter of 2015, to $33 million.
Snapchat has estimated 2016 revenues will range from $250 million to $350 million, increasing to anywhere between $500 million and $1 billion for 2017.
The company itself has said that video views reached over 10 billion per day, growing more than 350 percent in the past year, and that more than two thirds of its users create content daily. It seems obvious that the mobile app company is on track to becoming even more popular.
Despite this, marketers appear to remain apprehensive about Snapchat as a platform worth investing in. According to a study by socialfresh, “The Future of Social Media,” advertisers rely the least on Snapchat, with only four percent of digital marketers saying they advertise on the network monthly. In comparison, 61 percent said they advertise on Facebook monthly, 32 percent on Twitter, and 30 percent on Instagram.
In that same vein, the study also found that Snapchat placed last with regards to where marketers plan to invest—only 11 percent indicated increasing investment on this platform in the next year.
You will find more statistics at Statista