Snap’s Stock Plummets 14 Percent After CFO Resigns
Snap Inc. shares plummeted nearly 14 percent on Wednesday, one day after the Snapchat parent company’s chief financial officer announced his resignation less than a year after his arrival.
Snap shared that CFO Tim Stone was exiting the company on Tuesday afternoon in a filing with the SEC, although his final day at the company hasn’t been set. Stone joined the company last May after spending two decades at Amazon.
His departure, coming only weeks before the company is set to report its Q4 financial results, clearly spooked Wall Street. Snap shares hit $5.64 per share on Wednesday after its 13.76 percent tumble — erasing a modest run since mid-December.
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It was another tough day for Snap’s true believers. Since jumping to nearly $21 per share last February following a strong earnings report, Snap shares are down more than 70 percent.
In its SEC filing, Snap said Stone was leaving to “pursue other opportunities” and that his exit was “not related to any disagreement with us on any matter relating to our accounting, strategy, management, operations, policies, regulatory matters, or practices (financial or otherwise).” That sentiment was contested by a Financial Times report on Wednesday, with people close to the company saying that Stone was leaving because of “personality clash” with CEO Evan Spiegel.
Snap posted its best sales quarter ever during Q3, Stone’s first full quarter with the company. Snap reported $298 million in revenue. But those gains on the business side, showing Snap has been able to attract more advertisers, was offset by the company losing 2 million daily users.
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In its SEC filing, Snap said that it expects to report “slightly favorable” revenue in comparison to its $355 million to $380 million guidance back in October.
Stone’s exit marks the latest high-ranking Snap executive to leave the company in the last year. Imran Khan, the company’s former chief strategist, stepped down in September; Nick Bell, Snap’s head of content, exited in November.
Snap CFO Tim Stone to Resign After 8 Months