Snap Inc equity, debt and subsidiaries

Accuracy score :
97%

Summary (from the latest annual and quarterly  report – 2018)

  • Total equity: 2.38 billion USD
  • Market Cap is 8 billion USD ( the last price of the stock is 6.18 USD)
  • Snap, which refers to itself as a camera company, has one of the most popular social networking apps, Snapchat
  • Total equity has increased from 1.32 billion USD in 2016 to 2.38 billion in 2018
  • The company has 350 million USD in cash on account
  • Total equity – cash on account = 2.38 billion USD – 350 million USD = 2.03 billion USD
  •  In 2018 the total debt was zero                                                                                                                                               
  • (In 2016 total debt was also zero)
  • The company's revenue has increased in the latest 2017 annual report  to 825 million USD from 404 million in 2016
  • Net loss in 2017 was 3.4 billion USD, Net loss in 2016 was 515 million USD

 

Opinion about the company

Fundamentally it is a not good company but in the future, we can expect its growth (the company operates with the loss, total debt is zero, big amount of cash on company's account, ROE is negative: around -50 %).

Snap Inc. is an American technology and camera company, founded on September 16, 2011, by Evan Spiegel and Bobby Murphy and based in Santa Monica, California. It has four products: Snapchat, Spectacles, Bitmoji, and Zenly. The flagship product, Snapchat, is a camera application that helps people communicate visually with friends and family through short videos and images called Snaps. Snaps are deleted by default, so there is a lot less pressure to look pretty or perfect when creating and sending images on Snapchat. By reducing the friction typically associated with creating and sharing content, Snapchat has already become one of the most-used cameras in the world.

The company was originally named Snapchat Inc. upon its inception, but it was rebranded on September 24, 2016, as Snap Inc. in order to include the Spectacles product under a single company. Both founders own a combined 95% voting power (Spiegel with 48% and Murphy with 47%), which is undiluted and transferable to either of the two if one of them retires or dies. By January 2014, the company had refused offers of acquisition, including overtures from Mark Zuckerberg to buy Snapchat and its assets, with Spiegel commenting that "trading that for some short-term gain isn’t very interesting". In November 2016, the company filed documents for an initial public offering (IPO) with an estimated market value of $25–35 billion. In early March 2017, the company officially went public under the trading symbol SNAP, and raised almost $30 billion in market capitalization on the first day of trading. It is important to mention that in August 2017, Business Insider reported that Google discussed an offer to buy the company for $30 billion in early 2016.

  • The firm has approximately 188 million daily active users
  • Snap generates nearly all of its revenue from advertising with 88% coming from the U.S.
  • The firm is headquartered in Venice, California
  • In November 2017, Tencent acquired 12% a non-voting minority equity stake of the company in the open market. Tencent paid around $2 billion for this

 

Snap standalone subsidiaries and acquisitions are :

  • In May 2014, the company acquired the software company AddLive ( for 30 million USD) and reached an agreement with the Federal Trade Commission (FTC) following the leak, citing misinterpretations on storage of user data and the fact that "snaps" can still be accessed regardless of its expiration
  • In December 2014, the company acquired Vergence Labs for 15 million USD in cash and stock
  • In December 2014, the company acquired a mobile app Scan for 50 million USD
  • In September 2015, Snapchat acquired Looksery for 150 million USD to develop Lenses for its mobile app, a feature based on Looksery's facial recognition software
  • In March, July, and August 2016, the company acquired Bitstrips for 100 million USD, Obvious Engineering, the developers of Seene, for an undisclosed amount and Vurb for 100 million USD
  • In December 2016, the company acquired advertising and technology company Flite and Israel-based augmented reality startup Cimagine Media for 30–40 million USD
  • In 2017, the company acquired Placed for 125 million USD
  • In May 2017, the company acquired the location sharing app Zenly in a cash and stock deal for 200 million USD
  • In the last several years, SNAP had several smaller acquisitions (Teleport, PlayCanvas, Metamarkets, Strong.codes, Ctrl Me Robotics, Inc.) worth 200 million USD

 

Total =1.01 billion USD

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