Snap Inc. files for IPO, exposes $514m loss

Snap Inc., the parent company of video messaging app Snapchat, filed for its initial public offering Thursday, giving the world a clearer view of its financial workings.

In its filing to the US Securities and Exchange Commission, Snap – which describes itself as a ‘camera company’ – said it recorded revenue of $404.5 million in 2016, compared with $58.7 million in 2015.

However, the company reported a net loss of $514.6 million, compared with $372.9 million in the previous year.

Snap is expected to raise up to $3 billion in an initial public offering on the New York Stock Exchange within the next few weeks, with analysts valuing the company between $20 and $25 billion.

Since launching in 2011, Snapchat has accumulated 158 million daily users with more than 2.5 billion ‘snaps’ created every day. Snapchat says it currently has more than 10 million daily active users in the UK.

Last year the platform – which also allows users to overlay branded filters to their own photos and videos – attracted many big-name advertisers, including Sainsbury’s, Nationwide, EE, John Lewis and Mulberry.

“Our advertising business is still young but growing rapidly,” the company said on Thursday.