Published: Fri, February 03, 2017
Economy | By Melissa Porter

Snapchat Is Reportedly Working On A New Augmented Reality "World Lens" Update

"We have incurred operating losses in the past, expect to incur operating losses in the future, and may never achieve or maintain profitability", Snap said in the filing.

Snap had quietly filed its papers with the Securities and Exchange Commission late past year, since under the JOBS Act, a company making less than $1 billion annually in revenue can do so.

Mission: In September, Snapchat rebranded itself to Snap Inc. and started calling itself "a camera company".

Snap makes money from an eclectic mix of sources, ranging from traditional video ads and sponsored location-based filters to physical products like smart sunglasses sold out of smiling vending machines and ice trays sold on Amazon (AMZN, Tech30).

Currently, it is not clear how this augmented reality feature will interact with Snapchat. No valuation for the company as a whole is mentioned, but the company is predicted to still be one of the biggest tech IPOs ever.

For example, the company's mission: "Snap a camera company".

Snap is perceived as the biggest competitor to Facebook (FB) and Twitter (TWTR) for social traffic, especially among younger individuals. Facebook famously tried to acquire the company for $3 billion in 2013.

With Snapchat parent Snap about to go public before the current quarter comes to an end, the company will have to start focusing on turning a profit. Many startups have preferred to sit on their vast piles of private funding rather than deal with public market scrutiny. Once its paperwork, or "S-1", is made public, potential investors will be able to scrutinize the Los Angeles-based company's financials for the first time. In comparison, Instagram reported 300 million DAUs in June when it had 500 million monthly active users.

Global user growth slowed sharply in late 2016, according to the SEC filing.

Like this: