If the initial purchasers of the notes exercise their option to purchase additional notes, Snap plans to enter into additional capped call transactions with the capped call counterparties. The capped call transactions are subject to customary anti-dilution adjustments.
Snap aims to become profitable this year
Last October, Snap CEO Evan Spiegel sent a memo to employees explaining that the company’s goal is to become profitable this year. According to him, it was a “stretch goal to break even in the fourth quarter of 2018 and to achieve profits in 2019.
In the first quarter and second quarter this year, Snap delivered strong financial results. Its daily active users (DAUs) and revenue continue to increase.
“The growth in our community, engagement, and revenue is the result of several transitions we completed over the past 18 months,” said Spiegel in a statement last month.
