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Snapchat's US Stock Listing Is Set To Be The Biggest In Years

Snapchat's US Stock Listing Is Set To Be The Biggest In Years”

Snapchat parent Snap Inc. filed its highly anticipated public IPO filing late Thursday, reporting strong revenue gains but slowing user growth as it plans to sell only non-voting shares. In documents filed with the Securities and Exchange Commission, Snap said it took in $404 million in revenue previous year but lost $515 million.

The messaging service began in 2011 and since then has grown to 158 million users per day, though the company is yet to turn a profit.

A year ago the platform - which also allows users to overlay branded filters to their own photos and videos - attracted many big-name advertisers, including Sainsbury's, Nationwide, EE, John Lewis and Mulberry.

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Snap Inc has admitted it faces a challenge in convincing advertisers of the veracity of its ad business as it files for a $3bn (£2.4bn) IPO that could be one of the largest by a tech firm in years. That is a better than 43-fold increase in the valuation of the company.

Snap's main product Snapchat is a social media app through which users send and view "snaps" that last only for a while. It also reported an annual net loss of $515 million in 2016. If all goes according to plan, it will be the biggest IPO ever offered for a L.A. -based company.

"When we were just getting started, many people didn't understand what Snapchat was and said it was just for sexting, even when we knew it was being used for so much more", the company said in a prospectus. According to the S1 filing, Snap LOST $514.6 million in 2016.

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Interestingly, new shareholders will not be given any voting rights leaving control of company direction with the company's founders, chief executive, Evan Spiegel and technology chief, Bobby Murphy. Snap also warned that user growth was flat in the third quarter.

The company's filing to the New York Stock Exchange has already raised eyebrows after revealing that losses have widened each year and stating that it "may never achieve or maintain profitability" reports the Telegraph. That was up 48 percent from the prior year's fourth quarter. Last September, they introduced Spectacles, flamboyant $130 smart sunglasses equipped with a video camera that are created to make posting to Snapchat a snap (pun intended).

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