Snap (SNAP) IPO Opens Up 41%

Today's IPO for Snap Inc. (NYSE: SNAP), the parent of social media powerhouse Snapchat, opened for trading at $24 after pricing 200,000,000 shares $17 per share, above the expected $14-$16 range.

Snap Inc. is offering to sell 145,000,000 shares of Class A common stock in this offering. Selling stockholders are offering an additional 55,000,000 shares of Class A common stock.

The offering is being led by Morgan Stanley, Goldman Sachs, JP Morgan, Deutsche Bank, Barclays, Credit Suisse and Allen & Company.

On average, 158 million people use Snapchat daily, and over 2.5 billion Snaps are created every day.

For the year ended December 31, 2016, the company recorded revenue of $404.5 million, as compared to revenue of $58.7 million for the year ended December 31, 2015, representing a year-over-year increase of more than 6x. Global average revenue per user, or ARPU, in the three months ended December 31, 2016 was $1.05, compared to $0.31 for the same period in 2015. In North America, ARPU in the three months ended December 31, 2016 was $2.15 compared to $0.65 for the same period in 2015. For the year ended December 31, 2016, the company incurred a net loss of $514.6 million, as compared to a net loss of $372.9 million for the year ended December 31, 2015. For the year ended December 31, 2016, Adjusted EBITDA was $(459.4) million, as compared to $(292.9) million for the year ended December 31, 2015. For the year ended December 31, 2016, net cash used in operating activities was $611.2 million as compared to $306.6 million for the year ended December 31, 2015. For the year ended December 31, 2016, our Free Cash Flow was $(677.7) million as compared to $(325.8) million for the year ended December 31, 2015.

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