Snapchat, the ephemeral photo, video and messaging app, is finally starting to make some real money. With this new money in the bank, they are also looking for someone to manage it all.
According to multiple sources following the company, Snapchat is targeting around $50 million in revenue this year. This marks a nice yearly earnings considering it launched its first revenue product less than a year ago. Most of Snapchat’s revenue comes from short video advertisements in both its Live Stories and Discover Stories features which has been reporter to cost advertisers 2 cents per view.
Snapchat also is looking to capture a percentage of the political campaign budget for the upcoming elections by hosting a series of sponsored political streams, which expects to bring in at least another $200 million in revenue next year.
Snapchat’s revenue will continue to increase with their introduction of sponsored geofilters back in May of 2015. The first big player to get on board with the sponsored geofilters was McDonalds back in early June of 2015. It has not been reported what Snapchat is charging advertisers for the sponsored geofilters but it is definitely a revenue model that has high engagement and very small overhead associated with it so Snapchat should see some success through it.
With the growth in revenue over the past few months its only to be expected that Snapchat is in the search for a CFO to manage the young startups money. CEO Evan Spiegel has been searching for a CFO to lead the financial team since late last year but sources say no candidates have made the grade just yet.
With revenue streams around sponsored video ads, sponsored geofilters and reportedly an ecommerce play with Hearst, Snapchat is expected to exponentially increase its earnings through 2016, giving analysts every right to respect its $19 billion evaluation.