CNBC's Jim Cramer said on Friday he wasn't impressed by the numbers in Snap's IPO registration.
"I think their growth comes at a considerable expense. I think they're paying a lot for their growth," Cramer said on "Squawk on the Street," a day after Snap officially filed for an IPO.
Snap saw net revenue of $404.48 million in 2016, up from $58.66 million in the prior year, according to a Thursday filing. The company, however, said it also saw a net loss of $514.64 million in 2016. That means the ephemeral messaging service grew revenue almost seven times in a year — but its losses outstripped its revenue.
"They do have the right demo and they are a camera company trying to tell a good story. But at the same time I was like, wow, you're spending a lot of money. Are you ready to come public?" Cramer said.
Cramer admitted, however, that it appears younger people are going to Snapchat more than Facebook.
On Thursday, the social media company told investors in the filing it "may never achieve or maintain profitability."
"We have incurred operating losses in the past, expect to incur operating losses in the future, and may never achieve or maintain profitability," the filing said. Other similar companies, like Twitter, have also included similar language in their public offerings.
— CNBC's Anita Balakrishnan contributed to this report.