Their infrastructure commitments are ridiculously high.

"In its disclosure, Snap has said that it is contractually obligated to “spend $2 billion with Google Cloud over the next five years and have built our software and computer systems to use computing, storage capabilities, bandwidth, and other services provided by Google.” Of the current losses at Snap, more than 80 percent of those funds go straight into Google’s pockets."

https://www.recode.net/2017/2/7/14526832/snap-ipo-snapchat-s...

https://www.forbes.com/sites/quora/2017/02/22/could-snapchat...

https://www.cnbc.com/2017/02/09/snap-cloud-bill-aws-google-c...

EDIT: @dfee How that revenue is recognized is usually based on when the services are delivered, but I am not an accountant.