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Inc.
BREAK 1.33%
The head of the strategy, Imran Khan, will leave the social media company while Snapchat's parent company struggles to retain its users.
Last month, Snap reported a 2% drop in the number of daily users, its first such quarterly decline, and said the short term could also be disrupted. At the beginning of the year, Snap launched a redesign of the app, but the new design would have hurt users growth.
Snap Class A shares fell 32% this year, and in pre-market trading, shares fell 0.5% to $ 9.88, near its record low of $ 9.62 .
Snap said Khan was leaving "to pursue other opportunities" but would stay for an interim period to help with the transition. The last day of the executive was not decided.
"Mr. Khan confirmed that this transition is not related to any disagreement with us on any matter relating to our accounting, strategy, management, operations, policies or practices (financial or otherwise)," said Snap in a filing. with the Securities and Exchange Commission.
Mr. Khan has held his current position since January 2015, according to the Snap website, and played a significant role in the company's initial public offering in March 2017. Snap shares, on the first day of trading, jumped 44% close to $ 24.48.
Prior to joining Snap, Mr. Khan led Internet Banking at Credit Suisse Group AG, where he
Alibaba Group Holding
Ltd.
Initial Public Offering
Mr. Khan becomes the latest example of a Wall Street banker joining a Silicon Valley startup at the time of his IPO, and then leave the startup soon after. Anthony Noto was the main banker of
Twitter
Inc.
IPO in 2013 and later became its chief financial officer and then director of operations before leaving earlier this year to become the managing director of Social Finance Inc.
According to FactSet, Mr. Khan owns 0.9% of the class A shares of the company and 0.8% of the outstanding Class B shares. In total, Mr. Khan's market capitalization is approximately $ 92 million.
Write to Allison Prang at [email protected]
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