In this screenshot, Snap Inc. CEO Evan Spiegel will be performing at the Virtual Snap Partner Summit 2021 in Los Angeles on May 20, 2021.
Snap Partner Summit 2021-Snap Inc | Getty Images
snap Shares fell 22% after reporting Third quarter revenue On thursday.The company’s revenue fell short of Wall Street’s expectations after the advertising business was disrupted due to privacy changes. Apple Introduced Earlier this year..
Here’s what Snap reported and a Wall Street quote:
- Adjusted earnings per share: 17 cents vs. 8 cents by Refinitiv
- Revenue: $ 1.07 billion vs. Refinitiv forecasts $ 1.10 billion
- Global Daily Active User (DAU): 306 million vs. 301.8 million per Street Account
- Average Revenue Per User (ARPU): $ 3.49 vs. $ 3.67 per Street Account
Snap CEO Evan Spiegel praised Apple’s consumer-friendly changes. February CNBCHe also warned that it would pose a risk to fourth-quarter earnings, but said Thursday that iPhone privacy settings had an unexpected impact on Snap’s advertising business.
“Although some business turmoil was expected, Apple’s new measurement solution couldn’t scale as expected, making it more difficult for ad partners to measure and manage ad campaigns for iOS.” Spiegel said in a prepared statement. ..
Share of social media rivals Facebook When twitter After Snap’s third-quarter earnings were announced, after-hours trading each fell by nearly 7%. This indicates that investors may be afraid of similar implications for performance.
Spiegel also warned that disruptions in the global supply chain and labor shortages would reduce “the short-term desire to generate additional customer demand through advertising.”
SnapCFO Derek Andersen warned that Apple’s privacy changes, supply chain disruptions and labor shortages are expected to generate revenue from $ 1.16 billion to $ 1.2 billion in the fourth quarter. According to Refinitiv, this is below the $ 1.36 billion revenue analysts expected in the fourth quarter.
“Unfortunately, these changes occur during the season when advertising partners usually expect their supply chains to operate at peak capacity. Otherwise, peak advertising demand is at peak contests, and therefore peak prices. It happens at a time when it is expected to promote. Our auction. “
Snap’s net loss fell 64% from a loss of $ 200 million a year ago to $ 72 million.
“It’s hard to predict the trajectory of these challenges, but the growth of our audience, the adoption of new products and platforms by our community, and the fundamental effectiveness of our advertising products for performance advertisers give us confidence in our future. The ability to navigate the business and this environment while continuing to invest in the long-term vision. “
Snap reported 306 million active users per day. This is an increase of more than 4% from the 293 million people the company reported in April. That number is up nearly 23% compared to the company’s 249 million daily users reported a year ago.
The company said in a prepared statement that it expects to reach 316 to 318 million DAU in the fourth quarter. According to StreetAccount, this is more than analysts expected in the fourth quarter of 311.8 million daily active users.
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