Snap Inc., the four-year-old company behind the disappearing-message social network Snapchat, has confidentially filed for an initial public offering, according to Reuters.
The company filed paperwork for its IPO before the presidential election, Dow Jones reported. Because its annual revenue is under $1 billion — Snap generated just $60 million in 2015 — the company was able to file its form S-1 confidentially under the JOBS Act. The IPO could value the company between $20 billion and $25 billion, and it could start selling shares as soon as March.
Earlier this year, Snap told investors that it expects to earn between $250 million and $350 million in revenue in 2016 and up to $1 billion by 2017. The company is already outpacing the higher end of its 2016 forecast, the Wall Street Journal reported.
Snap closed a $1.8 billion round of funding in May that valued the company at nearly $18 billion, according to regulatory filings. Investors included Fidelity Investments, General Atlantic and Sequoia Capital.
As Snapchat’s ephemeral video messaging format has gained rapid popularity, especially among younger users, competitors have followed suit. Facebook-owned Instagram introduced its “Instagram Stories” feature in August, which has a lot of similarities with Snapchat.
Snap recently rolled out its wearable device, Spectacles, which are currently only sold from a roving vending machine for $130 a pop. The plastic sunglasses allow users to make a 30 second video that is then sent directly to the mobile app.