Snap Inc (SNAP: NYSE)announced on Tuesday that its chief financial officer will be resigning after less than a year. Following the news Snap shares plummeted to about 11 percent.
In an SEC filing on Tuesday, Snap Chat revealed that CFO Tim Stone will be resigning after taking the job in May of 2018. After spending 20 years at Amazon Inc. Stone replaced Andrew Vollero as CFO last year. Stone and Vollero are not the first high profile executives to exit the company. In only the past year Snap has seen chief strategy officer Imran Khan, vice president of communication Mary Ritti, and vice president of monetization engineering Stuart Bowers leave the company.
Snap Chats stock value has been struggling over the past 6 months and has seen a decline of about 50 percent, making its market value around USD 8.5 Billion. Since the company was launched on the New York Stock Exchange in 2017, Snap has lost more than 65 percent of its value. The Company is led by 23-year old Chief Executive Evan Spiegel.
On a more positive note, in the filing Snap Chat also included its expectations for its four-quarter 2018 financial results saying, “We are finalizing our fourth quarter 2018 financial results and expect to report revenue and Adjusted EBITDA results that are slightly favorable to the top end of our previously reported quarterly guidance ranges for each.”
Outlined in its quarter 3 outlook for the fourth quarter, the Company estimated between USD 355 MIllion and USD 380 Million in revenue and adjusted losses between USD 100 Million and USD 75 Million. However, they also are expecting a decline in daily active users.
Tim Stone will continue to work as CFO and help find his replacement through the scheduled full year 2018 financial results announcement, his last day is unclear. His reasoning for resigning is that he plans on pursuing other opportunities.
“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,” Snap Inc. disclosed in an SEC filing on Tuesday.