The app of the teenagers is worth 25 mliardi of dollars? The basics of Snapchat – The Sun 24 Hours

the Snap, the company that controls the famous app of images and videos that disappear after 24 hours (Snapchat), aims to raise 3 billion dollars through an Ipo that could be the largest for a social media, from Twitter 2013. The group aims to reach a valuation of $ 25 billion, $ 13 million for employee against the 23 million-a-worker Facebook. The control of the company – which launched on the Nyse with symbol Snap – will remain in the hands of the co-founders Evan Spiegel and Bobby Murphy, respectively ceo and director of technology for the Snap: the two have the same dimension and will issue only shares without voting power, which brings them to say that you probably Snap, and is the first Ipo to do so.

' what emerged from the publication of a document (S-1) filed with the Securities and Exchange Commission in November 2016; by then there were news because Snap has exploited a rule on confidentiality called Jobs Act, which applies to companies with less than a billion dollars of revenue; in fact, facilitates the landing in the bag of the start-up. From the document we learn that the Snap closed in 2016 with a loss of 514,64 millions of dollars, much wider than that from 372,89 million in 2015. On this front, Snap has clearly said that may never be able to become profitable: "We have suffered an operational loss in the past, we expect to incur an operating loss in the future and we may never reach or maintain profitability," reads the document.

sales in 2016 have been 404,48 million dollars against 58,66 million in 2015; in only the fourth quarter, average revenues per user were $ 1.05 against 31 cents in the same period of the previous year, but far from the $ 7 to Facebook. As done by the largest social network in the world in 2012 and Twitter in the next year, Snap has warned in the document that "if we fail to retain existing users, or if our users are less active on Snapchat, our business would be heavily damaged". In the case of Facebook, the warning was only precautionary (the number of users is doubled from 900 million of the Ipo), but in the case Twitter has revealed the prophetic (from the landing bag has only added 100 million monthly active users). the Every day, 158 million people have used the app Snapchat – founded in 2011 – in the quarter ended December 31, 2016, 48% more than the year before. However, Snap recognises that its success depends on the loyalty of users, currently concentrated in the age between 18 and 34 years old. The risk is that "they will turn to other products, which would weigh negatively on the maintenance of the users and on growth". Not to case Snap quotes the social network of Mark Zuckerberg as the main threat: "Instagram, a subsidiary of Facebook, has recently introduced a feature that mimics widely our and that may be directly competitive.

From the financial point of view, from the document it emerges (without any explanation) that in march 2016 Snap has fired auditor PricewaterhouseCoopers, preferring to keep EY in the last two years, and engaged to verify the financial statements of the group. Morgan Stanley, Goldman Sachs, JPMorgan, Deutsche Bank, Barclays, Credit Suisse and Allen & Co are the underwriters of the Ipo and act as joint bookrunner.

Source Radiocor