Snapchat’s Got The Money But Where’s The CFO?

The latest reports show the social messaging app is valued at $16 billion and according to multiple sources familiar with the company, Snapchat has its sights set on hitting the $50 million revenue mark this year.

But who is going to take the reins in managing all this cash flow?

The company is reportedly on an extensive search for the right person for the job, Re/code reported last week. Sources told Re/code that Snapchat’s CEO Evan Spiegel has been on the hunt for a CFO since late last year, but despite a few candidates coming close to landing the role, the “intense” search continues.

Whoever steps into the position may truly have their work cut out for them, especially as the photo-sharing service possibly moves closer to its IPO.

In addition to the stress that comes with taking any company public, Snapchat’s future CFO will also have to deal with a young CEO and an evolving business model, all while the company continues to make its way up the valuation ranks.

It was reported back in March that Snapchat was valued at $15 billion after Alibaba, China’s eCommerce powerhouse, dropped $200 million into it. Other investors that helped drive up its valuation included Yahoo, venture-capital firm Kleiner, Perkins, Caufield & Byers, Benchmark, General Catalyst Partners, Institutional Venture Partners, Lightspeed Venture Partners, Coatue Management LLC, and DST Global.

Unlike most startups, Snapchat reportedly goes after investors individually, rather than in large rounds where the investments are lumped together to establish a valuation. That’s why calculating how much the company is worth is more uncertain.

Growing valuation aside, a looming IPO can bring on considerable pressure to any CFO.

In Snapchat’s case, there is still no official word on when a move to go public will take place, but the company’s CEO has not been secretive about something being in the works.

“We need to IPO, we have a plan to do that,” Spiegel said at a conference earlier this year, without providing any hints to a time frame. “An IPO is really important.”

Sources close to the company told Re/code Spiegel has remained very patient when it comes to the search for a CFO, largely handling the pursuit on his own and remaining very meticulous throughout the process.

While the CEO is said to be prone to changing his mind a lot, those same sources confirmed Spiegel is looking for Snapchat’s forthcoming CFO to come with the experience of running a public company.

It is unclear on whether Spiegel will seek help in his CFO search from a recruiting firm as he’s done in the past for other high-profile hires, such as General Counsel Christopher Handman and the company’s Head of Communications Jill Hazelbaker.

But as Re/code reported, Snapchat may have a likely CFO candidate right under its nose.

Imran Khan, Snapchat’s Chief Strategy Officer who was hired back in December from Credit Suisse, is a former Wall Street banker and is reportedly handling many of the financial responsibilities of a CFO for the company in the meantime.

As the search for a person to manage the money continues, so does Snapchat’s growth and reach.

More than 100 million people currently use the app and advertisers have taken notice. According to Re/code, Snapchat receives 3 billion video views per day, with sources confirming advertisers are flocking to the app with a willingness to pay up to $10 million for ad packages. Snapchat is also continuing to develop its revenue-generating products, such as Discover, which allow media partners to publish their own content within the app.