5 ms·

I don't understand the shock at the stock-based comp expense. Surely a couple of million is a drop in the ocean. What have I missed?

chollida1 9y ago
That's actually in billions, typically in financial reports the 1000's are dropped to make the numbers easier to read,my fault. I've made this clear now.
- soVeryTired 9y ago
  Gotcha, thanks
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pinaceae 9y ago
that's over 2 BILLION.
wtvanhest 9y ago
If it isnt a typo... its 2bn. Not 2mm
JauntTrooper 9y ago
$2.2 billion is 13.5% of the company, and that's just in new stock grants provided as compensation over the last six months.
- acchow 9y ago
  No, it's for the year. And the way I understand it, they took a one time charge during this year for all stock based compensation ever. So it's really all stock based compensation ever. They did not hand out $2.2bn in stock in 6 months.
  - rrdharan 9y ago
    The $637 million (or $750 million depending on when/how you look at it) was definitely handed out specifically as a bonus for taking the company public: https://www.recode.net/2017/2/2/14465646/evan-spiegel-snap-ipo-bonus-750-million https://www.recode.net/2017/2/2/14465646/evan-spiegel-snap-i...
  - JauntTrooper 9y ago
    Fair enough, I did some more digging. $1.99 billion in stock-based compensation was recognized in the first 3 months of the year. $637 million of that was given to the CEO according to his October 2016 employment contract, which all vested at IPO in March 2017. Then there's the pre-IPO employee RSUs. Those typically are subject to 4 years of time vesting, as well as a performance requirement that triggered when the company IPOed. $1.3 billion of those were recognized as of March 31 2017 because they met their performance vesting requirement (IPO-ing). Those were probably the shares that had already satisfied the time-vesting requirement. The company still hasn't recognized an additional $1.3 billion in stock-based compensation that will be recognized on its financial statements over a weighted-average period of the next 3.1 years. Those were probably issued relatively recently since they haven't met their time vesting requirement yet.
    - prostoalex 9y ago
      Remember the Simpsons episode where the CEO of the Internet company invites everyone to treat themselves to some free shares?
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ptero 9y ago
Three zeros (a factor of 1000)

chollida1 9y ago

That's actually in billions, typically in financial reports the 1000's are dropped to make the numbers easier to read,my fault. I've made this clear now.

soVeryTired 9y ago
Gotcha, thanks

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pinaceae 9y ago

that's over 2 BILLION.

wtvanhest 9y ago

If it isnt a typo... its 2bn. Not 2mm

JauntTrooper 9y ago

$2.2 billion is 13.5% of the company, and that's just in new stock grants provided as compensation over the last six months.

acchow 9y ago
No, it's for the year. And the way I understand it, they took a one time charge during this year for all stock based compensation ever. So it's really all stock based compensation ever. They did not hand out $2.2bn in stock in 6 months.
- rrdharan 9y ago
  The $637 million (or $750 million depending on when/how you look at it) was definitely handed out specifically as a bonus for taking the company public: https://www.recode.net/2017/2/2/14465646/evan-spiegel-snap-ipo-bonus-750-million https://www.recode.net/2017/2/2/14465646/evan-spiegel-snap-i...
- JauntTrooper 9y ago
  Fair enough, I did some more digging. $1.99 billion in stock-based compensation was recognized in the first 3 months of the year. $637 million of that was given to the CEO according to his October 2016 employment contract, which all vested at IPO in March 2017. Then there's the pre-IPO employee RSUs. Those typically are subject to 4 years of time vesting, as well as a performance requirement that triggered when the company IPOed. $1.3 billion of those were recognized as of March 31 2017 because they met their performance vesting requirement (IPO-ing). Those were probably the shares that had already satisfied the time-vesting requirement. The company still hasn't recognized an additional $1.3 billion in stock-based compensation that will be recognized on its financial statements over a weighted-average period of the next 3.1 years. Those were probably issued relatively recently since they haven't met their time vesting requirement yet.
  - prostoalex 9y ago
    Remember the Simpsons episode where the CEO of the Internet company invites everyone to treat themselves to some free shares?

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ptero 9y ago

Three zeros (a factor of 1000)