Snapchat parent-company Snap Inc. has reportedly begun the process of going public early in 2017, by filing a confidential IPO with the SEC.
The Snap IPO comes as little surprise—and a “confidential” filing is nothing new; in fact, they’ve become relatively common amongst companies in the tech space. Confidential IPOs give businesses a cushion between handing off financial documents to the SEC, and the general public (along with potential investors) getting their mitts on this information, opening the company up to further analysis. These IPOs are available to companies with less than $1 billion in annual revenue per the JOBS act, which was signed into law back in 2012.
Snap is estimated to be valued between $20-$25 billion, per the Wall Street Journal; of course, that could change over the coming months. Documents obtained by TechCrunch last May showed the company projected $1 billion in revenue for 2017, which was before the company unveiled its limited-edition Snapchat Spectacles—but, also before Facebook’s Instagram “borrowed” several of Snapchat’s most popular features, including Stories, which could ultimately impact user numbers.
Snapchat still boasts over 150 million daily active users—no small feat, but still far below Facebook’s line of products, including Messenger—and has recently become of major interest among social media marketers. With Facebook’s core app recently hitting peak ad load, and the company getting major flack over fake news during the presidential election, advertisers are looking elsewhere for social impressions; making the Snap IPO timely, to say the least.
The Snap IPO doesn’t mean the company will go public within the next few months; however, this is a decided first step in that direction. Expect to hear little regarding movement forward during the upcoming holiday season, but as 2017 gets underway, we should have some idea as to what Snap’s plans are for joining the ranks of the publicly-controlled social giants.