Snap, which now refers to itself a “a camera company,” has officially filed for IPO in the New York Stock Exchange. This is the first U.S. social media company to file for an IPO in more than three years, following Twitter back in 2013.
The company’s Snapchat app has blown up in popularity since it was first introduced in 2011. In June 2016, Snapchat had over 150 million daily active users and according to its SEC filing, the company now reports an increase to 158 million users as of Q4 2016, with 60 million located in the United States and Canada.
Snap is expected to raise a $3 billion USD IPO, according to its SEC filing. The company recorded $404 million in revenue in 2016, up 500 percent year-over-year. Snap says its top 10 advertising markets are the United States, China, Japan, United Kingdom, Germany, France, Australia, Brazil, Canada and Italy. In 2016, total advertising money spent in 2016 by Canadian advertisers amounted to $8.5 billion, with estimates predicting it will grow to $11.9 billion by 2020.
“Our strategy is to invest in product innovation and take risks to improve our camera platform,” writes Snap in the SEC filing.
“We believe that the best way to compete in a world of widely distributed mobile applications is innovating to create the most engaging products. New mobile software is available to everyone immediately, and usually for free. While not all of our investments will pay off in the long run, we are willing to take risks in an attempt to create the best and most differentiated products on the market.”
Snap also says that co-founders Evan Spiegel and Bobby Murphy will maintain control over Snap Inc.
“[They will] have control over all stockholder decisions because they control a substantial majority of our voting stock. The Class A common stock issued in this offering will not dilute our co-founders’ voting control because the Class A common stock has no voting rights,” says the company