The above graph represents Snap research and development expenses by quarter, starting from fiscal Q1 2015 to the recently completed quarter. Snap R&D expenses increased 33.5% YoY in Q4 2019, to $219.5 million – representing over 39.1% of its total quarterly revenue.
Snap Quarterly R&D Spending: History
|Source||Snap Inc. Financial Reports, SEC Filings|
|Note||Snap Inc. fiscal year starts from January 1st|
One must note that the company’s spending on R&D in a particular quarter has always been higher than the other operating expenses such as Sales and Marketing, and General and Administrative.
In Q1 2017, Snap’s total R&D spending reached an all-time high of $805.8 million, representing a whopping 538.5% of its total revenue. However, it declined to $255.7 million in the following quarter itself.
The Research and development expenses of Snap Inc. consist primarily of personnel-related costs, which include salaries, benefits, and stock-based compensation expense for the engineers and other employees engaged in R&D of the company’s products.
About Snap Inc.
In the Spring of 2011, Reggie Brown came up with the idea of a disappearing-image messaging app called Picaboo (now known as Snapchat). However, due to the equity distribution issue, Brown later left the company.
In September 2011, the Snapchat app finally went live on the iOS App Store. On October 28, 2012, the company reported over 1 billion snaps being shared on Snapchat app – with over 20 million unique moments shared every day. While on October 29, 2012, the app was made available in the Google Play store for all Android devices.
On September 26, 2016, the name of the company changed from Snapchat Inc. to Snap Inc.
In March 2017, Snap Inc. completed its initial public offerings (IPO), at a price of $17 per share.
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