Snap Inc, the maker of Snapchat has finally filed for an IPO that aims to raise $3 billion. The company has filed its S-1 paperwork with the US Securities and Exchange Commission (SEC) confirming its plans to go public. Post IPO closing, the company will trade under the symbol 'SNAP' on the New York Stock Exchange.
Snap is one of the fastest growing companies in the social media space. The company has transformed itself from a messaging platform to a camera company. According to SEC filing, Snap saw its revenue grow by nearly 500 percent to $404 million by the end of December 31. The company reported a net loss of $514.6 million and claims to have 1,859 employees.
Snap's IPO has been one of the most anticipated tech IPOs in the recent times. The company's IPO efforts is being managed by bankers Morgan Stanley, Goldman Sachs, J.P. Morgan, Deutsche Bank, Barclays, Credit Suisse, and Allen & Co. among others.
Snap says it has 158 million daily active users and the IPO reportedly values the company at over $20 billion. The IPO comes at a time when some of the core features of Snapchat have been replicated by its competitors. According to the filing, Snapchat saw decline in userbase after the launch of Instagram Stories.
"We have incurred operating losses in the past, expect to incur operating losses in the future, and may never achieve or maintain profitability," Snap said in its S-1 filing. The company also notes that its advertising business is growing quickly. The company is planning to roll out new features in collaboration with media companies with NYT launching a new daily edition to attract younger audience.
The IPO filing makes its clear that Snap doesn't want to be just an app developer. It has already showed its hardware ambitions with Spectacles but the company will need to show large-scale hardware projects in order to attract investors. The company has made significant progress in the past but its core features are now under attack from competitors.