Snap painted a grim picture for the fourth quarter, accusing Apple’s recent privacy changes and broader macro issues of having a lower earnings outlook than analysts expected and causing its shares to drop 27%.
The Los Angeles-based social media group warned that revenue in the three months to the end of December would be between $ 1.16 billion and $ 1.2 billion, below the current consensus estimate of $ 1.4 billion dollars, according to S&P Capital IQ.
It also posted a 57% increase in revenue in the three months to the end of September to $ 1.07 billion, below its previous revenue forecast of $ 3 million.
The new rules, which Spiegel says have âshaken upâ the industry, require apps in Apple’s App Store to obtain explicit permission from users to follow them for advertising purposes.
“While we anticipated some degree of business disruption, the new measurement solution provided by Apple did not evolve as we expected, making it more difficult for our advertising partners to measure and manage their advertising campaigns. for iOS, âhe said.
Snap, whose shares were up 50% this year at the close of the market, fell more than a quarter to $ 54.85 in after-hours trading.
Spiegel also blamed the bleak outlook on the broader macroeconomic challenges associated with the pandemic, including advertiser supply chain issues and labor shortages. âThis in turn reduces their short-term appetite to generate additional customer demand through advertising at a time when their businesses are already supply-constrained,â he said in prepared remarks.
Net losses declined 64% to $ 72 million in the quarter, Snap added.