“Snap intends to use the net proceeds from the offering for general corporate purposes, including working capital, operating expenses, capital expenditures [and] may also use a portion of the net proceeds to acquire complementary businesses, products, services, or technologies.” The company also said it may use the case to repurchases Snap’s common stock, “although it has no commitments for any material acquisitions or stock repurchases at this time,” it said in a filng with the SEC.
Snap posted stellar quarterly earnings results earlier this week, with a jump in users, a surge in revenue and narrower than expected net loss. Shares were up close to 40% yesterday.
Other media and entertainment companies have been raising cash rapidly for a cushion against the economic impact of the coronavirus pandemic. Snap, like others, pulled its financial guidance for the second quarter due to COVID-19 and said its advertising revenue began to slow in March when the stay-at-home orders took effect.