Snap has burnt through an average of $68 million a month since going public in 2017 and could, in theory, run out of cash in three years unless it turns a profit.
It follows a difficult period for the company, including a wildly unpopular Snapchat redesign, a delayed update for Android users, and competitors like Facebook cloning features including Stories.
It is relatively easy for Snap to grow revenues or reduce costs.
Snap is burning through so much cash it could run out of money in the next three years.
That's according to an analysis by the Financial Times, which did a deep dive on the company's finances and found that its average monthly cash burn — the rate at which outgoings outstrip revenue — is $68 million since it went public in 2017.
The FT said Snap secured a tighter rein over its costs in the fourth quarter of 2018, which if maintained, could more than halve its burn rate to $33 million in 2019.