Snap Inc. just filed the paperwork for their highly-anticipated initial public offering.
The Snapchat app is going public to raise $3 billion but, will reveal details about how the company operates.
Snapchat will trade under the stock name SNAP at the New York Stock Exchange. Several banks are underwriters in the initial public offering including Allen & Company LLC, Deutsche Bank Securities, Goldman Sachs, Morgan Stanley and J.P. Morgan. With the paperwork filed on Thursday, the Snapchat stock will begin trading in March.
Snap Inc. describes their mission as a camera company. “We believe that reinventing the camera represents our greatest opportunity to improve the way people live and communicate. Our product empower people to express themselves, live in the moment, learn about the world, and have fun together.”
However, the company does explain that has not made any profits from the most popular app among teens. According to the IPO filing Snap Inc reports, “We have incurred operating losses in the past, expect to incur operating losses in the future, and may never achieve or maintain profitability.”
This news comes after Snapchat released new features including a Universal search bar and Black History Month features. Snapchat is also reportedly developing technology for augmented reality that can interact with the environment.
Snapchat vs Instagram
However, Snapchat is facing competition with Facebook’s Instagram. A recent Techcrunch report found Snapchat’s growth stalled by 82% following the release of Instagram Stories. In fact, Snapchat had the lowest growth quarter since the company released their data in 2014.
Snapchat explained in their IPO filing that their biggest risk factors include competition. “We face significant competition in almost every aspect of our business both domestically and internationally,” Snap Inc explained. Not to mention, the company pointed out that their competition “mimic our products and therefore harm our user engagement and growth.”