Tim Stone, who is (or rather was) the CFO of Snap, has decided to resign from his post. This news came forth on the 15th of January, 2019, in an SEC filing.
This marks Snap’s second CFO departure in the last 12 months. According to CNBC, after just few hours of the announcement, the company’s stocks went tumbling down to over 8% and the shares plummeted to about 12 % as of 16th January afternoon.
Tim Stone and Snap –
Tim began as the CFO of Snap in the month of May, 2018. He joined Snap from Amazon, where he had most recently served as vice president of finance; he was offered an annual salary of $500,000.
Tim was expected to breathe new life into the company, with Wedbush Securities analyst Michael Pachter saying his hire, among other factors, showed Snap’s “increased focus on shareholder value.”
But instead, the stock’s value has continued to decline almost 50% in the past 6 months, leaving it with a market value of about $8.5 billion. Stone’s $20 million worth of restricted stock units were set to vest over four years.
More Insight –
The SEC Filling –
Here is a small context of the filling which marks the resignation of Tim Stone –
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On January 15, 2019, Tim Stone, our Chief Financial Officer and principal financial officer, notified us of his intention to resign to pursue other opportunities. Mr. Stone has confirmed that this transition is 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). Mr. Stone’s last day has not been determined. Mr. Stone will continue to serve as Chief Financial Officer to assist in the search for a replacement and an effective transition of his duties, including through our scheduled full year 2018 financial results announcement.
The filing also said that the company would post results that are “slightly favorable” to the top end of its previous guidance when it reports its Q4 earnings on February 5. In its Q3 outlook it expected Q4 revenue between $355 million and $380 million, and adjusted losses between $100 million and $75 million. The company also warned investors that its namesake photo-sharing app, Snapchat, would continue to shed daily active users.
Snap CEO Evan Spiegel’s memo –
The CEO of Snap, Evan Spiegal wrote in a memo to his employees. This was obtained by TechCrunch and is as mentioned below –
I wanted to let you know that Tim Stone, our CFO, has decided to leave Snap.
Tim has made a big impact in his short time on our team and we are very grateful for all of his hard work. I know we have all benefitted from his customer focus and the way he has encouraged all of us to operate as owners.
Tim will remain at Snap to help with the transition, including through our Q4 and full year earnings call on February 5th.
Tim’s transition is 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).
Please join me in wishing Tim all the best in his future endeavors!”
TechCrunch has reached out to Snap and will update this story if there are any changes.
Snap closed the day up 3.65% at $6.54 per share. In after-hours trading, Snap is trading down more than seven percent.