Snap is pitching itself as a company that's on the cutting edge of how people consume content. It says people are increasingly using cameras and images as a way to communicate. Snap is specially positioned to take advantage of this because its core product was among the first to use the camera as a means of direct communication.
What started out as hardware devices have become software products that connect to the internet. Cameras now augment the way a person communicates, he says, rather than a person’s memory.
Snap's users are also different than other platforms. Snapchat is about small networks and intimacy. That translates to advertisers being able to connect with an audience in ways that Facebook and Google could never offer.
He argues that what users have actually wanted is “a better way to communicate with the people they really cared about” rather than “more people to communicate with.”
"We began commercial operations in 2011 and for all of our history we have experienced net losses and negative cash flows from operations," Snap said in its regulatory filing with the SEC. "If our revenue does not grow at a greater rate than our expenses, we will not be able to achieve and maintain profitability."
Critics worry Snap's IPO could be a high watermark for the company. The lack of growth or a clear business model have critics worrying Snap will become another Twitter.