The messaging app provider has recorded $100 million revenue during fourth quarter of the last year. Advertising is cyclical and fourth quarter appears as the peak season for strong advertising. But the revenue figure appears worth mentioning since the run rate metric provides a glimpse of business growth.

Higher revenue projection indicates that the business is growing at smooth rate. If $16 billion valuation of the business is compared with this year's revenue projection, the ratio becomes 50 times. This may be compared with the case of Facebook where this ratio stands at 17 times.

Apart from smooth business rolling of Snapchat, the advertising API (a software tool for connecting services) is also believed to contribute for such higher revenue projections. This feature allows advertisers to inject their ads into Snapchat more easily.

2016 election has also appeared as a boon for Snapchat in terms of revenue earning. Bernie Sanders has reportedly run a nine-day campaign before the Iowa caucuses. Ted Cruz has also used Snapchat to troll fellow Republican candidate Donald Trump. The app developer has hired a political ad sales person for procuring such businesses in 2015.

The company has procured new funding of $175 million from Fidelity last week against its declared value of $16 billion. However, a Snapchat spokesperson has declined to make comment on the company financials.