Snapchat says Apple’s privacy changes are hurting and causing its ad business


Snap, the parent company of social media app Snapchat, said on Thursday that its most recent quarter revenue was $1,067 billion, up 57 percent from the same period last year. But the results fell below Snap’s $3 million guidance for the quarter, and the social media company’s shares fell more than 20 percent in after-hours trading.

Snap says its business has been affected Recent privacy changes to Apple’s iOS mobile operating system this prevented some advertisers from tracking. The company said it expects some downtime from the changes, but the challenges for advertisers are more severe than expected.

The company said it is developing new tools and measurement solutions for advertisers to adapt to Apple’s privacy changes.

Snap said advertisers are also under pressure from the pandemic and supply chain cuts that have limited their spending. Twitter shares also fell slightly on the news. Twitter is expected to report its financial situation on Tuesday.

Snap said its daily active users continue to grow. The company reported 306 million active users in the quarter, up 23 percent from the previous year. Snap lost $72 million during this period, down 64 percent from the previous year.

“We are now working at scale to navigate significant headwinds, including changes to the iOS platform that affect how advertising is targeted, measured and optimized, as well as global supply chain issues and workforce shortages affecting our partners,” Snap said. CEO Evan Spiegel said in a statement.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *