In an S-1 filing, Snap, which lists itself as a camera company, said it will look to list its Class A common stock on the New York Stock Exchange under the ticker symbol SNAP. The banks working on Snap's I.P.O. include Goldman Sachs, Credit Suisse, Barclays, Morgan Stanley, Allen & Company, Deutsche Bank, and JPMorgan.
According to The Information, Snap had almost $400 million in 2016 revenue, more than the $350 million that was at the top end of an internal company projection. While the Lenses are pretty cool and do attract users who come to Snapchat to use them, Snap is about to open up the technology for advertisers. In Q4, the company managed to generate merely $14.7 million from Europe and $5.7 million from the world except for Europe and North America.
If revenue estimates are correct for 2016, the company increased revenue another 511% to $367 million. Last year, the company incurred a net loss of $514.6 million - up from a net loss of $372.9 million, in 2015. Snap, which is expected to go public in what could be a $3 billion I.P.O.in early March, revealed on Thursday that the company generated more than $400 million in annual sales in 2016-up from $58.6 million the year before-and has 158 million daily active users. Last year. SNAP launched SPECTACLES, a pair of smart glasses that can record video.
"Many people didn't understand what Snapchat was, and said it was just for sexting - even when we knew it was being used for so much more", the IPO documents say. May we suggest donating some of that cash to a good cause?
Snapchat opened its advertising business in October 2014, and that business accounted for 96 percent of its parent company's total revenue a year ago. This initial offering is aiming for $3 billion. If our revenue does not grow at a greater rate than our expenses, we will not be able to achieve and maintain profitability.
"Unlike many other free mobile applications, the majority of our users tend to be located in markets with high-end mobile devices and high-speed cellular internet", the filings read.
Nevertheless, developers did not yet inform users whether the new updates will be implemented automatically or allow users to select them manually. According to Nielsen data, on any given day, Snapchat reaches 41 percent of all 18 - 34 year-olds in the U.S. In comparison, an average individual U.S. TV network only reaches 6 percent of the same demographic. Engagement was strong, with time spent on the site at 25 to 30 minutes a day per user.
Besides WhatsApp, Instagram is Facebook's other weapon against Snapchat. Whether Snap can successfully ramp up user activity amid fierce competition from major players like Facebook and Instagram, which aren't afraid to copy Snapchat's best features, remains to be seen.
The company said it relies on Alphabet Inc.'s Google for most of its computing, storage and bandwidth, and any disruptions to Google's cloud functioning could "seriously" hurt its business.