Published by Matthew Gustin
10 months ago
The company behind the popular photo app Snapchat goes public. The figures released for the first time revealed a half billion dollar loss last year. Snap Inc. intends to take $3 billion in the share placement, as announced on Thursday. This could also be a placeholder amount, which will be changed later. According to earlier media reports, Snap is targeting a stock market value of $25 billion.
At the same time, business figures were also presented for the first time. According to the reports, Snap lost $514.6 million last year following a loss of $373 million in 2015. Revenue also jumped from 58.6 to $404.5 million.
In the final quarter of 2016, Snapchat had an average of 158 million users a day. However, Snapchat growth slowed significantly after the launch of Instagram Stories. The platform grew in the third quarter only by another five million, while in the previous period slightly more than two times of growth have been achieved. In the year as a whole, however, it was around 50 million.
The US is the most important market with 68 million daily users, Europe follows with 52 million. Snapchat has become popular with young users with photos that disappear on their own when viewed. The money is to be earned, at Snapchat, mainly with advertising. Meanwhile, the app is also becoming a platform for media content.
In addition, Snap released a pair of camera glasses whose sales are expected to grow strongly this year according to the stock market report. Up to now it has only been sold in small quantities, mainly from a few vending machines with changing locations.
The documents also reveal that the co-founders Evan Spiegel and Robert Murphy are the two main figures at Snap: Each hold nearly 22 percent of the shares and 44.3 percent of voting rights. Thus no decision can be made without them. The stock exchanges should also be worthwhile for the early investors Benchmark Capital Partners and Lightspeed Venture Partners, each holding 12.7 and 8.3 percent of the shares. (SDA)