{"id":3281,"date":"2017-02-03T05:55:59","date_gmt":"2017-02-03T05:55:59","guid":{"rendered":"https:\/\/www.rsoftsolution.com\/blog\/snap-has-finally-filed-publicly-for-its-massive-ipo.html"},"modified":"2017-02-03T05:55:59","modified_gmt":"2017-02-03T05:55:59","slug":"snap-has-finally-filed-publicly-for-its-massive-ipo","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/snap-has-finally-filed-publicly-for-its-massive-ipo.html","title":{"rendered":"Snap has finally filed publicly for its massive IPO"},"content":{"rendered":"

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It\u2019s here! Snap\u00a0\u2014 which confidentially filed for its IPO late last year \u2014 has released its public filing through the Securities and Exchange Commission. It\u2019s going to be listed on the NYSE as \u201cSNAP.\u201d<\/p>\n

This is another incremental step in the process of going public, but it\u2019s probably the most important because we\u2019re finally getting our first glimpse at the financial guts of the company. Snapchat has gone from a zeitgeist-y app among a younger audience to one with more than 150 million daily users \u2014 and one with a strong pitch to advertisers based on the engagement of the app.<\/p>\n

Snap is expected to go public at a valuation north of $25 billion in early March, making it not only the first tech IPO of the year but also one of the largest in a while. That means Snap is not only setting itself up as a bellwether for future consumer tech IPOs, but also for the tech IPO market in general. We\u2019re also getting a glimpse into what Snap is acknowledging as existential threats for the company, which could give us a sense of where things are headed for ad-driven companies in public markets.<\/p>\n

But, now we have the data, and we can get a better sense of where the app is going. We\u2019re updating this post as we get more information, so be sure to refresh periodically. Let\u2019s get started!<\/p>\n

Financials<\/h2>\n

Last year, leaked documents revealed that Snapchat would generate $350 million in revenue for 2016 and was projecting $1 billion in revenue for 2017. It looks like the company came in ahead of the projections for last year at around $400 million. That\u2019s up from $59 million in revenue generated in 2015 \u2014 a nearly 6x jump.<\/p>\n

In the fourth quarter last year, Snap brought in $165.7 million in revenue, up from $32.7 million in revenue in the fourth quarter in 2015. Its losses, however, are widening rapidly. In Q4 the company lost around $170 million, up from losses of around $98 million in the fourth quarter of 2015. On the year, Snap lost around $515 million, up from losses of $373 million in 2015.<\/p>\n

While it\u2019s natural given that Snapchat has a short history of monetizing its service, it\u2019s still growing its revenue at a healthy clip \u2014 though that\u2019s starting to slow dramatically.<\/p>\n

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International revenue, too, represents a tiny fraction of its business. Snap brought in $14.7 million in revenue in the fourth quarter last year from Europe, up from $1.3 million. It brought in $5.7 million from the rest of the world outside of Europe and North America in the fourth quarter,\u00a0whereas\u00a0the year before it brought in effectively no revenue.<\/p>\n

Not unexpectedly, Snap has had to invest heavily not only in research and product development but also infrastructure. An app that prides itself on engagement through the use of video and photos is going to come with a lot of costs pertaining to running the actual service and keeping it from crashing.<\/p>\n