Snapchat corporate parent Snap Inc. is facing another major executive departure: The company’s chief financial officer Tim Stone is on his way out, Snap revealed in a regulatory filing Tuesday afternoon.
Stone will stay with the company to find a new candidate for his position for the time being, according to the filing. His last day has not been determined; he will stay on through the company’s next earnings report, which is scheduled for February 5.
Evan Spiegel acknowledged the departure in a memo sent out to staffers Tuesday, in which he said the company was “very grateful for all of his hard work.” Spiegel also said that Stone’s departure wasn’t prompted by any disagreements. (You can find the full memo below.)
Stone joined Snap in May of 2018, and previously worked for more than 20 years in various executive positions at Amazon, most recently as the e-commerce giant’s vice president of finance. At Snap, he replaced the company’s first chief financial officer Drew Vollero, who had been essential to the company’s IPO.
Investors reacted in shock to the announcement, sending Snap’s share prices down more than 8 percent in after-hours trading. That’s despite the fact that the company also revealed in the same filing that it foresees Q4 2018 results to come in at the top end of its previous guidance.
Snap has been hit by a string of executive departures over the past few months. Chief strategy officer Imran Khan announced his departure from the company in September. He was followed out of the door by vice president of content Nick Bell, vice president of marketing Steve Labella, and vice president of business solutions and former WarnerMedia exec Kristen O’Hara.
Snap’s stock had been on a downward trajectory for most of 2018 as the company struggled to attract new users. After peaking at $21.22 in February of last year, share prices hit a historic low of $4.82. On Friday, it closed at $6.54.
Here’s Snap CEO Evan Spiegel’s memo to staff about Tim Stone’s departure:
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!”