Social Media

Snap Swaps Out CFO Vollero for Amazon Exec

Drew Vollero helped guide Snapchat's parent through its IPO. But struggles with lackluster user growth and earnings marred his tenure.
Matthew HellerMay 8, 2018
Snap Swaps Out CFO Vollero for Amazon Exec

Snap CFO Drew Vollero, who helped guide the parent of Snapchat through its initial public offering, is stepping down after another disappointing earnings report.

The social media company announced in a regulatory filing Monday that Vollero would be replaced next week by Tim Stone, a vice president of finance at Amazon, where he has worked for 20 years.

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Vollero, a former Mattel executive, joined Snap as its first CFO three years ago when it had only five finance team employees, who worked on Quickbooks. Since going public at $24 per share in May 2017, Snap has struggled with lackluster user growth and fierce competition from Instagram.

In trading Monday, Snap’s stock fell 0.5% to $10.74.

Drew Vollero

“I am deeply grateful for Drew and his many contributions to the growth of Snap” Snap CEO Evan Spiegel said in a news release. “He has done an amazing job as Snap’s first CFO, building a strong team and helping to guide us through our transition to becoming a public company.”

Vollero will continue to serve as CFO until May 15 and will transition to a non-employee advisor through Aug. 15.

“I am proud of all that the finance department has accomplished leading up to the IPO and work done to streamline the company,” Vollero said. “The financial strategies we have in place are gaining traction to grow margins, flatten costs, and reduce cash burn, and we have a talented finance team that can execute well.”

As TechCrunch reports, Vollero’s resignation “follows a particularly rough quarterly earnings report last week that saw user growth crawl and left the stock price diving.” The user growth rate was the worst in the company’s history and Vollero warned that second-quarter revenue growth would “decelerate substantially from Q1 levels.”

Stone has served as Amazon’s finance chief since May 2010 except for six months as vice president of physical stores from August 2017 to February 2018. He has a background in cloud services, which is a primary expense for Snap.

He will take over as Snap CFO on May 16 and receive a salary of $500,000.