Snap
When Snap Inc. went public in 2017, it was valued at $24 billion — the biggest initial public offering in years, the Financial Times reported. However, years later, the company is still not profitable. Its user numbers have declined, it has few assets and its average monthly cash burn since the IPO has been $68 million. An April 2019 Financial Times analysis calculated that the company would run out of funds in three years if it did not become profitable.
Why Snap Isn’t Profitable
Snap has focused on growth over profitability, according to Crunchbase. Because of this, the company has had to raise debt. It has also struggled with its cost structure.
