///Report: Snapchat Preparing For March IPO

Report: Snapchat Preparing For March IPO

Snapchat’s recent name change to Snap Inc. seems to signal more than the app’s push into hardware. Snap is exploring an initial public offering that could value the company at $25 billion or more and could happen as soon as early next year, according to a new report.

Snap could start selling shares as early as late March, according to a new report in The Wall Street Journal. Citing unnamed sources, the report said Snap hasn’t yet hired any banks as it works on its public filing, called an S-1. The company was recently valued by investors at about $18 billion when it most recently raised funding in May. If the IPO occurs, Snap would be the largest company to go public on a U.S. exchange since 2014. A Snapchat spokesperson did not respond to a request for comment in time for publication.

Snap has told investors it expects revenue of between $250 million and $350 million this year, and up to $1 billion in 2017; and the company is ahead of its upper 2016 forecast, according to the report. (Forecasting firm eMarketer estimates the company will generate $366.7 million in revenue this year and nearly $1 billion in 2017.) Snapchat has raised about $2.4 billion in private funding to date.

The company sells full-screen, vertical video ads in its “Discover” and “Stories” sections, which play with sound after users click them. Snapchat’s Discover section, which features articles and video from more than a dozen publishers such as CNN, iHeart Radio and Cosmopolitan, generates nearly half of the company’s total U.S. ad revenue, according to eMarketer. Snapchat also sells geofilters and lenses.

By | 2017-02-27T08:25:49+00:00 November 30th, 2016|Hardware, Latest News|Comments Off on Report: Snapchat Preparing For March IPO

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