Snapchat messages may be momentary, but the company certainly have the staying power.The Company claims to have 150 million active visitors daily from US itself. The Company started with a unique idea of sharing media messages that disappears within few seconds after being received. Now, they are again planning to stay firm by Initial Public Offering of $25 B value to the company.
Snapchat is re branding the company from Snapchat to Snap. But the App name would remain intact.Snap Inc, the parent company of Snapchat has decided to introduce its second product, sunglasses with built-in cameras. These Sunglasses lets you shoot video to be uploaded on Snapchat. WOW!!
The IPO worth, $25 billion is more than its valuation of $17.8 billion round estimates in May. The camera company is now busy in paperwork. They have already tapped numerous banks to work for them in IPO program.
There is an uproar of Snap Inc, IPO program among the analysts, who feels the company may or may not share sale in that period. They are not sure that company will reach valuation of $25 billions. But This is also certain it achieves optimum evaluation they are hoping, it may become the biggest company to go public on US exchange after Alibaba, the Chinese e-commerce group.Only 19 Tech companies have gone public this year, raising $3.3 million. It will be the largest IPO by technology. Alibaba debuted $168 billions in valuation.
The company has told investors that it is expecting a revenue of $250-300 in 2016 which they have achieved. It forecasts it revenue in 2017 to be more than 1 billion. Let me tell you they earn by selling ads on Snapchat. These ads pops up in between stories. Though they are zealously expanding their ad API to allow advertisers to create content that auto plays in between stories. Users will see ads based on their, activity, locations, events in their in-app activity. This will also be rolling out soon.
In September, Snapchat flattened three strategies to cope up IPO in terms of revenues. One is to figure out features to collect email address of users and matching them with their data anonymously. Pushing up of advertisements to uses to watch video etc. This I have already discussed. Third is to get familiar to augmented reality field. It has partnered with SIG to maintain Bluetooth wireless standard. That implies they were planning to switch from software to hardware.
Snapchat has a cream layer of daily visitors aged between 16-34 years which it forecasts to accrue to 220 millions by 2017 end with a topping of revenue of more than 1 billion. Large number of visitors and their strategies seems to mark their expectations into reality. Facebook was willing to pay $3 billion to Snapchat.
Snap roll out will be a privilege to IPO market if it do not suffers a fallout facing some competitive offerings.
read what facebook is aiming for….