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Snapchat’s Leaked Financials Show Social Media Company Is Hemorrhaging Money

Company lost $128 million in 2014 between January and November

Snapchat lost $128 million in 11 months in 2014, according to leaked financials that surfaced Wednesday.

The documents, obtained by Gawker, show the company hemorrhaging money from January to November, 2014 while bringing in just $3 million in revenue.

The company began its opt-in advertising program in October, so the bottomline number only takes into account one month of advertising revenue.

Snapchat’s largest expenses, aside from payroll, came from $47 million spent on product and $13.7 million for “outside services.”

The “Discover” feature, and the ad revenue it delivered, wasn’t factored into 2014’s financials since it debuted in early 2015.

Bloomberg noted the missing Discover revenue is probably significant, but it’s not something that would do much to boost overall numbers.

“Snapchat’s media partners say traffic to the new Discover page in the Snapchat app started strong when it was introduced in January and fell off dramatically after the initial surge of interest,” Bloomberg reported. “Snapchat’s ad rates have declined rapidly. This month the company announced it would start to charge $20 per 1,000 views, a fraction of its earlier price, agencies say.”

The company did not immediately respond to TheWrap’s request for comment.