Snapchat owner Snap has fired the opening salvo in its US$3 billion (S$4.2 billion) initial public offering, outlining aggressive expansion plans but offering new investors no say on how the company is run and no promise of profits either.
The deal is a big commitment by Snap and a significant customer win for Google in its competition with Microsoft Azure and public cloud leader Amazon Web Services.
"Durability is absent in Snapchat... it's the next Groupon, the next Zynga, the next GoPro, the next FitBit", he told the news agency AFP, referring to companies which have lost luster after public debuts accompanied by high expectations. The company had 158 million daily active users on average in the quarter ended 31 December 2016, up 48% from the same quarter ended 31 December 2015.
According to the WIRED article, the Snap IPO could likely look to raise $3 billion from its share sale.
At the same time, Snap indicated it is seeking alternatives to Google Cloud. It brought in $US404.4 ($528) million in revenue, way up than a measly $US58 ($76) million it brought in in 2015 (a massive 6X increase!), but it had to spend buckets of money to make that work.
Snap outlined its array of products, which are focused on its camera concept. However, not all its business numbers are positive.
Snapchat Parent Snap Files $3 Billion IPO, But No Voting Shares
The lawsuit was originally filed by an individual in February 2013 against Snap's predecessor entity.
Snapchat parent company Snap Inc.is going public, and CEO Evan Spiegel is taking a $1 salary-just as Mark Zuckerberg did in 2012. The company has been launched in 2011 from a Stanford University dorm room.
The parent company of popular messaging app Snapchat also said that it had lost almost $1billion in the past two years. Users 25 and up are spending only 20 minutes on the app monthly and use to come only 12 times per month. What began as a messaging app for photos and, later, videos that disappeared after 10 seconds has turned into a formidable media company that many believe is poised to upend how its young audiences discovers and consumes content.
Revenues, mostly ad sales, have grown fast.
In response to this pressure, Snap Inc also moved into hardware a year ago as part of a pivot into a "camera company" rather than just the Snapchat app. The device is a pair of video-recording sunglasses.
The company is also realistic in its filing, stating a number of risks including competitors, loss of personnel, its new business model and security concerns.
'Raees' ahead of 'Kaabil' in three days!
On the other hand, Kaabil is a love story with its protagonist a visually-impaired Rohan Bhatnagar (played by Hritik Roshan ). So these numbers are definitely an indication that Raees could have been bigger if it was a single release.