Does snapchat generate revenue?


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Sara Lewis answered

As it stands, Snapchat does not generate any revenue. They receive funding from investors who are concerned not in the company's revenue, but the customer base, which is why Snapchat's valuation of $10 billion is so high.

More than 50% of Snapchat's users are between the ages of 13 and 17, a demographic which is highly sought after by marketers. And Snapchat looks set to continue growing, because although it's service seems like a novelty, at it's core it is a social network, alerting you that friends and contacts want to connect with you. 

There is a proven history of social networks consistently increasing their user base, and providing this trend continues, you would imagine, so will the investments.

This could explain why Snapchat's CEO rejected a $3billion bid from Facebook a matter of months ago. He saw the growth potential, and seems to have been proven correct.

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