IPO Snapchat – Top news

IPO service could become one of the largest technology companies in recent years. Snapchat for the first time in the history of the American stock exchange will list for IPO only non-voting shares. Snapchat is a messenger, which works on iOS and Android. Its key function is to self-destruct sent messages..

Snap Inc, owner of Snapchat messenger, will try to attract during the initial public offering $3 billion.

According to The Financial Times, if the plans of the service owners come true, It will mean, that the company is valued at $25 billion, and the block of shares, owned by Evan Spiegel, 26-summer co-founder and CEO, is worth $ 5,5 billion. Also, in the event of a successful IPO, he will be paid a bonus in $750 million. Bobby Murphy, 28, has a similar stake in Snapchat., co-founder and chief technology officer.

При этом после размещения ценных бумаг соучредители сохранят за собой контроль над компанией: this IPO will be the first, when investors will only be offered non-voting shares. It means, that only Spiegel and Murphy will make important decisions about the appointment of leaders, mergers and acquisitions and will be controlled by Snap, even if they leave their posts.

By submitting a document to an IPO, Snap также опубликовала отчетность. According to their data, the company's revenues in the fourth quarter of last year grew almost sevenfold, to $404,5 million. “Our advertising business is still young, but growing rapidly ", - stated in the company.

The global average revenue per user was $1,05, compared to $ 0,31 a year earlier. Moreover, in North America, этот показатель достиг $ 2,15. В то же время чистый убыток Snapchat составил $515 million in 2016 year, that more, than the results 2015 of the year, when was $373 million.

Если сервису удастся привлечь $3 billion, то IPO может стать третьим по величине после публичного размещения акций китайской Alibaba, which attracted $25 billion, и Facebook, который привлек $16 billion, indicates edition.

Investors hope, that Snap's successful IPO could attract more private tech companies to the stock markets. Until now, the so-called unicorns, such as Uber and Airbnb, shied away from going public.

Snapchat — сервис обмена моментальными сообщениями, its peculiarity is, that the data sent in it is available for viewing for ten seconds, after which they disappear. The messenger was launched in 2012 year.

In December 2012 года основатель Facebook Марк Цукерберг предложил основателям Snapchat выкупить компанию за $3 billion, however they refused.

• У Snap 158 million users per day, they post 2,5 billion multimedia messages (Snaps) in a day;
• Средний пользователь проводит в сервисе 25 — 30 minutes per day;
• The company suffers losses, in 2016 году ее убыток составил $515 million, in 2015 — $373 million;
• Revenue in 2016 year was $404,4 million, in 2015 year - $58,6 million;
• The company's only source of income is advertising.;
• Убыток от операций в 2016 year - $520,3 million, in 2015 — $381,7 million;
• Quarterly ARPU is $1,05;
• Число сотрудников компании — 1 859;
• Snap officially disclosed the amount, за которую купила в апреле 2015 of the year startup of Ukrainian entrepreneur Viktor Shaburov Looksery. Snap заплатила за него $79,4 million in the transaction and $71,2 млн деньгами и акциями в виде опционов сотрудникам при достижении целевых показателей;
• Snap использует хостинг Google Cloud для хранения всех своих данных и заключила контракт, согласно которому обещала в ближайшие 5 years to spend $2 млрд на оплату облачных услуг.

Financial indicators

First of all, the company's revenue and losses are growing. Last year, revenues were 404,5 million dollars, compared to 58,7 million in 2015. Net loss increased from 372,9 million to 514,6 million. Like other tech startups, Snap пре­ду­пре­жда­ет, that "may never achieve or sustain profitability".

IN 2016 Snap operating loss amounted to 520,4 million dollars, in 2015 - 381,7 million. In the fourth quarter, the average revenue per user increased to $1,06, про­тив $0,31 a year earlier. Majority of revenue (98%) comes from the sale of advertising.

Maintaining control

• The company issues three classes of ordinary shares. Investors will be offered class A papers, disenfranchised.
• Class B shares have one vote.
• Grade C papers, held by founders Evan Spiegel and Robert Murphy, на­де­ля­ют вла­дель­ца 10 го­ло­са­ми. With this structure, both have "the ability to control the outcome of all issues.", proposed to shareholders for approval. It is not specified in the prospectus, what will be the distribution of votes after the IPO.

Following the results 2016 Spiegel's salary, ген­ди­рек­то­ра Snap, со­ста­ви­ла 503,2 thousand. дол­ла­ров. Besides, he received a bonus of 1 million and various compensations totaling 2,4 million.

After the entry into force of the registration application, his salary will be reduced to $1 with a cash bonus in 1 million. Besides, he will receive limited payments in the form of shares, collectively representing 3% on the number of securities in circulation, in quarterly tranches for three years starting from the third quarter after the placement.

If one of the founders is fired, he will have not only shares, but also the right to vote. If any of them die, shares will be converted, and another co-founder will be able to take advantage of their votes.

Dependence on others

In processing, Snap's storage and transmission relies on cloud solutions from Google (NASDAQ: Alphabet Class C [GOOG]). Just three days before submitting your application, 30 ян­ва­ря 2017 of the year, the company signed a contract with Google Cloud for five years for a total amount 2 billion dollars. If cooperation is suspended, биз­нес, according to Snap itself, «се­рьез­но по­стра­да­ет». Hosting costs for Google or other companies will grow with the increase in the number of users and their activity.

Ос­нов­ны­ми кон­ку­рен­та­ми Snap счи­та­ет Apple (NASDAQ: Apple [AAPL]), Google и Twitter (NYSE: Twitter [TWTR]). The main danger is Facebook - the company noted the new features of Instagram, «во мно­гом под­ра­жа­ю­щие» Snap Stories. All listed companies have more resources, and they can lure users away from Snap, при­зна­ет стар­тап. Про­спект IPO гла­сит: «Нам гро­зит кон­ку­рен­ция прак­ти­че­ски во всех сфе­рах на­ше­го биз­не­са — как внут­ри стра­ны, and abroad ".

No headquarters
Snap is known for its high secrecy even within the company itself.. Offices are located in different parts of the United States and abroad; several main offices ended up in Venice, state of california. However, they are also "scattered around the city", what, as Snap notes, can affect morale, loyalty and ability of the company to control its employees.

For 2016 year their number increased from 600 to 1859. Впро­чем, the team in the company was friendly and friendly. Snap management writes: “When we say ”доб­ро­же­ла­тель­ная”, then we mean that special type of participation, who makes us tell the neighbor, that he had something stuck in his teeth, even if it's a little inconvenient ".

Snap continues to grow. По­след­ние но­вин­ки — линзы, superimposed on the user's image, and geofilters, allowing you to include location and advertising in your messages.