For some comparison, when Facebook went public, it was already profitable to the tune of a billion dollars. Twitter, which went public in late 2013, had also accumulated hundreds of millions in losses, though it’s losses were still less than its revenue for the year. Groupon is another company that had major revenue, but also major losses. Neither Groupon nor Twitter have managed to become profitable, even years after going public. (For more in-depth financial analysis, Bloomberg is a good place to look.)

As is the nature of these kinds of filings, Snap has to admit that it “may never achieve or maintain profitability.” Hmm.


On the bright side, Snap has 158 million daily active users, which is more than Twitter had when it went public, but way below Facebook. And Instagram right now, has more daily active users than Snapchat. Plus, Instagram continues to steal Snap’s best features.

For years, I’ve been arguing that the big question will be whether Snapchat becomes Facebook or does it become Groupon. The financials certainly make it look like the latter.