- CFO Tim Stone is leaving the company
- Third top executive to leave in recent months
- Earnings report due next month
Messaging group Snap saw its stock fall in pre-market trading on Wednesday as news broke that CFO Tim Stone was leaving the company. The surprise resignation came after Stone spent just eight months in the post and is the latest in a series of departures by senior management figures at the instant messaging app firm.
Investors reacted to the news, and the stock took a tumble. However, Snap said that the latest loss, which is now the third top executive move in the past four months, was “not related to any disagreement with us on any matter relating to our accounting, strategy, management, operations, policies, regulatory matters, or practices.”
Stone joined Snap in May 2018 after a 20-year spell at Amazon Inc. He will stay in his post through the publication of Snap’s full year’s earnings, which are due on February 5.
In a filing to the Securities and Exchange Commission late on Tuesday, Snap said: “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.”
In pre-market trading on Wednesday, Snap shares had dipped by 7.65%. This indicated its lowest opening price since January 4.
With Snap fighting for a position in a sector where rivals include big names such as Facebook and Alphabet/Google, their resources and scale might seem to be problematic. However, with the aim of being profitable throughout 2019, the next round of financial results coming next month could give investors a good indicator of whether or not that aim is actually achievable.