Snap, the Facebook of tomorrow ? The company does not show on the paper of the financial results comparable to those of the social network at the time of its ipo. The company, founded in 2011 and publisher of the mobile app Snapchat, however, raise three billion dollars on the occasion of the ipo.
Valued between 20 and 25 billion dollars, Snap will first have to convince the investors. To do this, and in accordance with the legislation, it provides a document of 178 pages the state of the places of its business and its finances. Selection of the main indicators :
Evan Spiegel. The 26-year-old, he is the co-founder of Snap. The latter holds 22% of the share capital of the company. After the IPO, the participation will be 25%. For its functions, Spiegel receives a salary of $ 500,000 per year. Subsequently, this compensation will not be more than a dollar. But in return, he will be paid $ 1 million in bonuses each year. Thanks to his actions, he will be a billionaire.
cost effective. Since the launch of commercial operations in 2011, Snap has never generated the slightest income. December 31, 2016, the company had accumulated $ 1.2 billion of losses. And Snap is already provided for expected to widen its losses, and even to do may never achieve or maintain profitability.
young. The majority of the users of Snapchat are between 18 and 34 years old. However, these are less than 25 years old that spend the most time in the application. On average, users 25 years and older visit Snapchat about 12 times per day, for a total of 20 minutes. Patients under the age of 25, it is 20 visits and more than 30 minutes per day.
daily habit. In 2012, Snap is increased from 1000 users per day to 100,000. A year later, it was a million. The application now boasts 158 million daily visitors on average. A user logs in, on average, more than 18 times per day, for a total duration of between 25 and 30 minutes. Other data relating to the use : more than 60% of the users to create Snaps (video or images) every day.
growth is slowing. Snap warns that the growth of its user base daily newspapers shows signs of a slowdown since the last two quarters of 2016. Between September and December, the increase was 4.5%, against 7% the previous quarter. And this growth was until now in two digits.
iPhone. The “majority”, or at least 50% of the users of Snapchat are iPhone owners. As a result, the publisher made clear that it favours the development of its products on iOS. Snap is also on Android, but the platform is secondary in terms of priorities.
Evan Spiegel and Bobby Murphy : one for all and all for one. As Mark Zuckerberg, the two founders intend to maintain control of the company after its ipo. Thus, even if they were to be relieved of their management duties, they would retain the same voting rights. In plain language, they retain control. The company also states that none of the co-founders can not assume the functions of another.
Advertising : 100%, or almost any income. “Substantially all” the turnover of Snap comes from advertising, and advertisers. The company has not, however, able to conclude long-term contracts with these customers. And the customer is very diluted in terms of revenue contribution. None of them weighs more than 10% of the turnover. In addition, many of these advertisers have just started to work with the society and spend only “a relatively small part of their overall advertising budget” with Snap.
Google Cloud. Google is both listed by Snap as a rival and a partner. To operate, the mobile application relies on the infrastructure and the Cloud services of Google. A contract valued at up to $ 2 billion over five years was concluded between the two actors for the use of Cloud-based services.
Effective up. Snap employs 1859 people, including 600 at the start of the year 2016. And this is only the beginning. The editor made it known that he plans to increase “rapidly” to the size of its workforce through hiring and acquisitions. The three billion dollars that Snap is hoping to raise will be used elsewhere, in particular to conduct redemptions.
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