Tuesday, May 17, 2022
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Snapchat Files For $3 Billion IPO

Photo: CNNMoney

Today is the day the tech world has been anxiously awaiting for months: five months years after the initial launch of the ever-loved app SnapchatSnap has filed for IPO – at a staggering $3 billion.

The ticker symbol was chosen as “SNAP” as the company filed on the New York Stock Exchange today. They are planning to raise $3 billion at a valuation of $25 billion, according to Business Insider.

This is an intriguing endeavor for Snapchat at this point in time – although they claim to have 158 million daily active users, they also reported in their S-1 filing that  “We have incurred operating losses in the past, expect to incur operating losses in the future, and may never achieve or maintain profitability.” Revenue is also a problem, as Snapchat lost $372.9 million in 2015 and $514.6 million in 2016 – meaning that they actually lost more money than their total revenue for the two years ($58.7 million in 2015 and $404.5 million in 2016).

Interestingly enough, Snapchat’s users are also declining. This TechCrunch article, published just earlier this week, explains how there has been a decline in the usage of Snapchat Stories since Instagram Stories launched. According to the CEO of a social content production firm quoted in the piece, there has been “an average decline in Snapchat Stories views of 20 to 30 percent from August until mid-January.” Nick Cicero, CEO of Delmondo, explains that “Overall, from August to November 2016, the average unique viewers per Snapchat Story has decreased about 40%.” In sum – Snapchat usage seems to be falling.

With this IPO now on the books in a current atmosphere of heavy competition between social media platforms like Snapchat, Instagram and Facebook, we’re curious to see how this plays out.

Torie Richardson
Editor In Chief. San Francisco. Haus, techno and music festivals.
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