During the last three months of 2016, Snap says users 25 and older opened the app 12 times and spent 20 minutes on the app each day and those under 25 used it more than 20 times and spent over 30 minutes using it.
During the fourth quarter of 2016, the company had 158 million average daily active users.
According to the WIRED article, the Snap IPO could likely look to raise $3 billion from its share sale. In 2015, Snapchat lost $372.9 million on revenue of $58.66 million.
Global Equities Research analyst Trip Chowdhry said in a note to investors the value of Snap was "hyper-inflated", and that the social media boom was nearing its end because "novelty is giving way to fatigue". However, not all its business numbers are positive. In 2015, Mr Khan also received US$145.3 million worth of Snap shares as a sign-up bonus.
CEO EVAN SPIEGEL started the company while an undergraduate at STANFORD UNIVERSITY.
As with a lot of high-growth tech companies, Snapchat is nowhere near profitability.More news: India down England to level series
Snapchat has become widely popular with teenagers and young adults thanks to messages that disappear shortly after being seen by recipients.
The increased competition from Facebook and its various apps by mimicking some of Snapchat's core features has also been flagged - most notably the Stories feature where users tell the story of their day through photos and video, which recently appeared on Instagram. The company makes money from ads on this platform and content created by third-party channels such as news organisations and content creators. Interestingly, it is also foraying into wearables: late past year, it released Spectacles, which are sunglasses that can capture video.
Snap notes in its filing that almost all of its revenue comes from advertising and that its target demographic is the notoriously fickle 18 to 34 group.
"Our competitors span from internet technology companies and digital platforms to traditional companies in print, radio, and television sectors to underlying technologies like default smartphone cameras and messaging", said Snapchat. And it's already found some success with Spectacles, its fun pair of video-recording sunglasses.
The company has made it clear to investors that its advertising business is growing quickly. 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.