Snap said in the IPO registration document it would become the first U.S. company to go public with shares on offer not granting voting rights to stock market investors. And during its road show, Snapreportedly said it was the next Facebook, not Twitter, according to the Wall Street Journal, but after it revealed large net losses, investors and analysts are not so sure.
But Snap's IPO also comes just as the company's core property, Snapchat, comes under serious fire from Instagram.
Snap's IPO is being closely watched by the tech sector, which has amassed almost 200 "unicorns"-industry slang for a private company worth $1 billion or more-but graduated barely any of them into the public markets".
What are the main financials involved?Snap's document even says Instagram's stories "mimics" its own. He's banking on his Snap stock being worth so much after the IPO that he will no longer need a regular paycheck. Along with that strong revenue growth, however, its losses also swelled.
The parent company had a $514.6 million net loss on $404 million in revenue for their year that finished on December 31, 2016 - revenue was up about 500 percent from the previous year.
Snap has committed to purchasing $2 billion in Google cloud services over the next five years, according to the company's S-1 filing.
What are the current user engagement numbers like?
Snapchat Publicly Files for IPO
The New York Times is the latest media company to fully embrace Snapchat, the rising social media app owned by Snap.
It has 158 million daily active users and about 2.5 billion Snaps are created everyday.
The app, founded by two students at Stanford University six years ago, has seen an unprecedented growth in users. Snap blamed the slower daily active user rate in the second half on a number of factors but mainly to the failure to introduce product updates in mid-2016 which may have led to performance issues. If the demand for its Spectacles is real, and it's consistent, the company will have to figure out how to make more for all the Spectacle-less faces among its 150 million-plus users.
"We are now negotiating an agreement with another cloud provider for redundant infrastructure support of our business operations", the company stated in the filing. It does not break out average revenue per user.
In some ways, Snap does look like Facebook.
But the company's challenge at growing its user base could be more of a problem.
At the time it went public, Facebook was about 8 years old.