Feb 21, 2017

Goldman makes Snap projections

Goldman Sachs is telling prospective investors in Snap's IPO that the company should hit $2 billion in revenue in 2018, according to Business Insider.

This would represent nearly a fivefold increase over the Los Angeles-based company's 2016 revenue, but also would reflect slower growth. Snap generated just $58 million in 2015 revenue and $404 million last year, or a 585% boost. The Goldman figured would suggest a 395% increase over two years.

It's a similar situation in terms of user growth. The company experienced a 48% increase in daily active users between the end of 2015 and the end of 2016, climbing to 158 million. Goldman Sachs expects that figure to hit 221 million by the end of 2018, or nearly 40% growth (again, over two years instead of one).

Business Insider did not make any mention of when Goldman believes Snap might become profitable.

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