SANTA MONICA, Calif. - Snap Inc . (NYSE: NYSE:SNAP), the parent company of the popular social media platform Snapchat, has appointed Jim Lanzone, the current Chief Executive Officer of Yahoo Inc., to its board of directors. The appointment took effect on Thursday.
Lanzone brings a wealth of experience in the technology and digital advertising sectors to Snap's board. His career includes leadership positions at several high-profile companies. Before his current role at Yahoo, which he has held since September 2021, Lanzone was the CEO of the dating app Tinder. He also has an extensive background in media, having served over eight years as President and CEO of CBS Interactive and as the first Chief Digital Officer at CBS Corporation (NYSE:CBS_old).
Snap's co-founder and CEO, Evan Spiegel, expressed enthusiasm about Lanzone's appointment, highlighting the benefits of his experience as the company continues to expand. Michael Lynton, Chairperson of Snap's board, also commented on the valuable technological insights Lanzone is expected to contribute.
Lanzone's prior board experience includes tenures at GoPro, Inc. and Edmunds.com. His academic credentials include a bachelor's degree from UCLA and a JD/MBA from Emory University.
His appointment comes as Snap Inc. continues to position itself as a leader in the tech industry, with a particular focus on camera technology and its potential to enhance communication and expression. The company's mission is to contribute to human progress by empowering people to express themselves and learn about the world.
This news is based on a press release statement from Snap Inc. and does not include independent commentary or analysis. The information provided is intended to inform readers about the latest developments in Snap Inc.'s corporate governance.
In other recent news, Snap Inc. reported a 16% year-over-year increase in total revenue, reaching $1.24 billion in Q2 2024, with advertising revenue accounting for $1.13 billion of this total. The company is refocusing its efforts on its advertising business and investing in augmented reality technology, facing competition from major players like Meta Platforms (NASDAQ:META) and TikTok. Despite the challenges, Snap has seen a 25% year-over-year increase in total time spent on its platform, as noted by BMO Capital Markets, which maintains an Outperform rating on the company's stock.
In the realm of mergers and acquisitions, Sahara AI, a startup that has partnered with Snap, recently secured $43 million in a funding round led by Pantera Capital. The funds will be used to expand its team, improve its platform's performance, and enlarge its developer ecosystem. Sahara AI merges blockchain technology with artificial intelligence to create a decentralized platform that aims to fairly compensate all contributors to generative AI.
Continuing with Snap's recent developments, the company is set to introduce new advertising placements that leverage machine learning and automation technologies. It's also developing augmented reality offerings, including smart glasses. Furthermore, Snap's Snapchat Plus subscription service now boasts over 11 million subscribers, and the company has partnered with Snowflake (NYSE:SNOW) and LiveRamp to facilitate the adoption of the privacy-centric Conversions API.
Lastly, Snap provided a positive outlook for Q3 2024, projecting a revenue growth of 12% to 16% and an estimated Adjusted EBITDA of $70 million to $100 million. Despite a weaker brand advertising environment, Snap remains optimistic about its direct response business and the potential of small and medium-sized business advertisers to contribute to long-term growth.
InvestingPro Insights
As Snap Inc. (NYSE: SNAP) welcomes Jim Lanzone to its board of directors, the company's financial metrics and analyst outlook provide a broader context for evaluating its current position in the market. According to recent data from InvestingPro, Snap's market capitalization stands at $15.78 billion, reflecting the scale of the business in the social media industry. Despite not being profitable over the last twelve months, analysts forecast that the company will turn a profit this year, which could signal a pivotal shift in the company's trajectory.
InvestingPro Tips suggest that while Snap has seen a significant return over the last week, with an 8.12% price total return, the stock has faced a notable decline over the past three months, dropping by 40.29%. This volatility underscores the importance of monitoring short-term market movements while considering long-term prospects. Additionally, the company's liquidity position appears robust, with liquid assets surpassing short-term obligations, which could provide resilience in navigating economic fluctuations.
Investors might also take note of Snap's valuation multiples. The company is trading at a high Price / Book multiple of 7.64, suggesting a premium compared to book value. This could be a point of interest for investors who weigh market sentiment heavily in their decision-making process. For those seeking more detailed analysis, InvestingPro offers additional insights, including 7 more InvestingPro Tips related to Snap, accessible through the dedicated link: https://www.investing.com/pro/SNAP.
As Snap Inc. continues to innovate and expand, with strategic appointments like that of Jim Lanzone, understanding the company's financial health and market position becomes increasingly relevant for stakeholders and potential investors.
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