Snapchat Files $3 Billion IPO, Eyes Wider Spectacle Rollout
Snap, makers of popular social app Snapchat, have finally pulled the trigger and filed for an initial public offering on the New York Stock Exchange.
It’s expected to be the biggest tech IPO since Facebook.
The company claims it has 158 million daily active users and hopes to raise $3 billion in additional funding, pushing the company’s valuation over the $20 billion mark.
Though Snapchat’s large userbase and revenue might prove appealing too investors, the company’s track record of losses might deter potential-shareholders.
The company’s revenue grew from $58.7 million in 2015 to $404.5 million in 2016. However, that number was weighed down by $514.6 million of losses.
Snap’s SEC filing acknowledges this fact, admitting the company “have incurred operating losses in the past, expect to incur operating losses in the future, and may never achieve or maintain profitability.”
The SEC filing also notes that the company intends to ramp up marketing and distribution for their Spectacle accessory in the near future.
Up until now, the camera accessory has only been available via pop-up vendors in the US.
Often seen as a rival to social media empire Facebook, CEO Evan Spiegel, insists “Snap Inc. is a camera company.”
“We believe that reinventing the camera represents our greatest opportunity to improve the way that people live and communicate. Our products empower people to express themselves, live in the moment, learn about the world, and have fun together.”
“In the way that the flashing cursor became the starting point for most products on desktop computers, we believe that the camera screen will be the starting point for most products on smartphones. This is because images created by smartphone cameras contain more context and richer information than other forms of input like text entered on a keyboard.”
“This means that we are willing to take risks in an attempt to create innovative and different camera products that are better able to reflect and improve our life experiences,” he says.
The move comes after months of anticipation and a number of moves by the company to raise its profile to investors.