Snap's origin story is similar to those of many other successful tech start-ups: Some college friends start with an idea, and after a lot of hard work and luck, it becomes a popular and growing business. Usually some disputes pop up along the way.
In Snap’s case, the friends were Stanford University undergraduates Evan Spiegel and Reggie Brown and recent graduate Bobby Murphy.
Snap wasn't immune from disputes. Spiegel is now Snap’s chief executive; he’s been described as the company's visionary thinker. Murphy, now chief technology officer, focuses on the app's technical side. And Brown is long gone.
The concept behind Snapchat is simple: Users send pictures and videos to each other that disappear a short time after being viewed. It's supposed to be intuitive, and for the tech-savvy young folks who make up Snap Inc.'s prime demographic, that may be true.
But people who aren't already using Snapchat may need a little explanation. Thankfully the company's S-1 filing includes some handy schematics.
“The only explanation I’ve ever seen of how to actually use Snapchat is buried in its IPO filing,” one user wrote on Twitter.
Some words for anyone expecting to make a mint from Snap: Good luck, sucker.
My rationale comes right out of the Snap filing, though it’s in numbers that have seemed to get casually glossed over in the pro-Snap pre-IPO hysteria. The S-1 tells the goriest story of bloodletting this side of Shakespeare’s “Titus Andronicus.”
Let’s start with the bottom line: Snap, which gets all its money from advertising, is an enormous money loser. The red ink has been getting worse even as revenue grows.
Conceived six years ago by Stanford University fraternity brothers to help peers send photos that would vanish after viewing, Snapchat roared through high schools and colleges, starting in Orange County. When the app hit 40,000 users in months, its co-founders knew they held a treasure.
Now, according to Thursday’s IPO filing, it boasts 158 million daily active users — and sources familiar with the matter say Snap’s stock sale could generate up to $4 billion. with shares priced to value the company at upward of $25 billion.
Conceived six years ago by Stanford University fraternity brothers as a silly online service to send photos that would disappear without saving, Snapchat has become a force in technology, advertising and entertainment. Here’s how it happened.
As Snap Inc. moves toward its hotly anticipated initial public offering, its finances will inevitably be compared with those of other social media giants like Facebook and Twitter, which filed for IPOs in 2012 and 2013, respectively.
Here's now Snap stacks up on several key metrics sure to be scrutinized by investors.
Daily active users: This measures the number of users that opened the app or used the service in a 24-hour period.