Snapchat filtered: A look at SNAP since its IPO with SASB Materiality

Blog June 1, 2018

No one ever said the transition from startup to public company is easy.   

Snapchat has been public for about five quarters, and the company has been dogged not only by a falling stock price, but by recurring negative events in areas that are considered financially material by the Sustainability Accounting Standards Board.

Most recently, it’s been reports of a toxic and sexist culture within the company.  That’s part of why the Snapchat Insight score is far below the industry average for Internet Media & Services on TruValue Labs’ Insight360 platform for timely ESG and intangible data.

Snapchat’s Insight score, the purple line on the chart above, which reflects long-term ESG performance, is currently at 30, nearly half of the industry average of 54.   On Insight360’s 100-point scale, 50 is the midpoint between positive and negative events.

So, what’s driving that poor performance since March 2017, and what categories that the Sustainability Accounting Standards Board (SASB) deems material are in play?

Here’s a look at the major events since Snapchat’s IPO, with SASB categories that cropped up as problems for the company in each news cycle.

These events were collected using the Insight360 trend chart above.  Research focus was dictated by dips in the timely Pulse score (dotted line) and spikes in event volume (seen at bottom of the chart).

 

MAY 2018

  • Snap CEO Evan Spiegel Addresses Company Sexism Reports
    International Business Times
  • Snap CEO Evan Spiegel says charges of sexism at his company are a ‘wake-up call’
    Latimes.com

SASB Categories

  • DIVERSITY AND INCLUSION – Material
  • RECRUITMENT, DEVELOPMENT AND RETENTION – Material

 

APRIL 2018

  • Snap stock falls after layoff disclosures; analyst says financial discipline ‘cannot come at the expense of innovation’.
    MarketWatch.com – MarketPulse
  • Layoffs to save $34 million annually: Snap Inc.
    Yahoo! News
  • Snap will save $25 million this year after cutting 7% of its staff in two separate rounds of layoffs.
    Business Insider


SASB Categories:

  • RECRUITMENT, DEVELOPMENT AND RETENTION – Material

 

MARCH 2018

  • Snap Tells Staff It Cut More Than 120 Engineers to Keep High Bar.
    Advertising Age
  • UPDATE 1-Snapchat owner to cut more than 120 engineers.
    Reuters Companies


SASB Categories:

  • RECRUITMENT, DEVELOPMENT AND RETENTION – Material
  • LIFECYCLE IMPACTS OF PRODUCTS AND SERVICES

 

JANUARY 2018

  • Snap’s leaked memo threatens employees with jail time for leaking information.
    Android Police
  • Snap will make your life a living hell if you leak confidential information.
    TechSpot
  • Snap Inc. lawyer threatens leakers with lawsuits, jail.
    Los Angeles Business

SASB Categories:  

  • RECRUITMENT, DEVELOPMENT AND RETENTION – Material
  • SYSTEMIC RISK MANAGEMENT

 

AUGUST 2017

  • Snapchat accidentally signed up to Russia’s official list of spy-friendly tech firms.
    IB Times Technology

SASB Categories

  • DATA SECURITY AND CUSTOMER PRIVACY – Material
  • HUMAN RIGHTS AND COMMUNITY RELATIONS

 

APRIL 2017

  • Snap CEO blasted for allegedly calling India ‘poor’.
    USA Today Tech
  • Snapchat denies the controversial remark made on India.
    Gizbot
  • Snap Inc. CEO Allegedly Stated The App Is For “Rich People”.
    Android Headlines

SASB Categories

  • DIVERSITY AND INCLUSION – Material
  • RECRUITMENT, DEVELOPMENT AND RETENTION – Material
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