As have a bun in the oven , Snap Inc. ( the society formerly known as Snapchat ) , has file the paperwork for its initial public offering ( IPO ) . According to theS1 documentsin the filing , Snap Inc. is seeking $ 3 billion when it go public and will rate itself between $ 20 and $ 25 billion .
The Snap IPO wasalready being hypedas one of the biggest tech IPOs in years , with plenty of commentator and finance tech types hoping it would be the secondly - come of Facebook . And look , there ’s no doubt that thefuture Mr. Miranda Kerr , CEO Evan Spiegel , is going to make anabsolute assload of money .
But lookingat the documents , it also becomes very clear that Snap Inc. has a lot more in plebeian with Twitter , when it file for its public offering back in 2013 , than it does with Facebook .
For one thing , Snap is lose an absolute shitton of money . accord to the S1 filing , Snap LOST $ 514.6 million in 2016 . It brought in $ 404.4 million in revenue , right smart up than a measly $ 58 million it brought in in 2015 ( a monolithic 6X gain ! ) , but it had to spend buckets of money to make that oeuvre . But for revenue to increase that much , its losses rocket too . Snapchat lost $ 372.9 million in 2015 .
As Bloomberg ’s Shira Ovide notice on Twitter , it ’s sure enough notable that the cost of tax revenue for Snapchat was high than the taxation itself .
Not certain I have ever understand a public company like Snapchat , where monetary value of receipts is higher than tax income . wild .
— Shira Ovide ( @ShiraOvide)February 2 , 2017
For some comparison , when Facebook went public , it was already profitable to the tune of a billion dollars . Twitter , which went public in previous 2013 , had also accumulated hundreds of trillion in losses , though it ’s losses were still less than its taxation for the year . Groupon is another fellowship that had major revenue , but also major loss . Neither Groupon nor Twitter have negociate to become profitable , even years after hold up public . ( For more in - astuteness financial analysis , Bloombergis a salutary place to look . )
As is the nature of these sort of filing , Snap has to intromit that it “ may never reach or maintain gainfulness . ” Hmm .
On the bright side , Snap has 158 million day-to-day active users , which is more than Twitter had when it give way public , but right smart below Facebook . And Instagram correctly now , has more everyday alive users than Snapchat . Plus , Instagram continues to steal Snap ’s best features .
For years , I ’ve been argue that the big question will be whether Snapchat becomes Facebook or does it become Groupon . The financials certainly make it look like the latter .
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