Home Networking company Snap Stock Dove. Changes to Apple Ads hurt revenue. Facebook, Twitter also down.

Snap Stock Dove. Changes to Apple Ads hurt revenue. Facebook, Twitter also down.


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Snapchat’s parent company said the changes Apple made was hurting its ad revenue. Snap action is down double-digit at the end of the session.

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the stock plunged late in the session after the social media company posted disappointing third-quarter revenue growth and provided fourth-quarter guidance that fell short of Street’s estimates. Snap said its ad revenue was hit more than expected by


the change in the rules surrounding advertising on mobile applications.

Snap (ticker: SNAP) is the first of the major social media companies to release September quarter results, and the failure is likely to weigh heavily on shares of the group as a whole.

Snap stock is down 23% to $ 58.29. On the news,


(FB) and


(TWTR) are each down 5%, while


(PIN) and


(GOOGL) were down 3% at the end of the session.

For the quarter, Snap posted revenue of $ 1.067 billion, up 57% from a year ago, and below the company’s forecast range of $ 1.07 billion. dollars to $ 1.085 billion. Adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization, was $ 118 million, up its forecast range of $ 117 million to $ 120 million. On a non-GAAP basis, the company gained 17 cents per share in the quarter, beating the Street consensus of 8 cents per share. The company said it increased the average number of daily users in the quarter by more than 20% to 306 million.

For the December quarter, Snap is forecasting revenue of $ 1.165 billion to $ 1.205 billion, well below Street’s consensus forecast of $ 1.36 billion. Snap projects adjusted EBITDA for the quarter of between $ 135 million and $ 175 million.

Snap blamed the failure in part on changes in Apple’s Ad Tracking Practices (AAPL) that make it more difficult to track consumer behavior on apps and websites.

“Our advertising business has been disrupted by the changes to iOS ad tracking that were rolled out widely by Apple in June and July,” the company said in remarks prepared for the company’s earnings conference call. “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. “

Snap said the problem “was compounded by the current macroeconomic effects of the global pandemic, with our advertising partners facing a variety of supply chain disruptions and labor shortages.” Snap said the factor reduced “the short-term appetite to generate additional customer demand through advertising at a time when their businesses are already limited by supply.”

Snap added that Apple’s changes have “overturned many of the industry standards and advertiser behaviors that have relied on IDFA, Apple’s unique identifier for advertising, over the past decade that require now a double membership of users for direct access. ”

The company noted that Apple has deployed a proprietary solution known as SKAdNetwork, or SKAN, to allow app-based advertisers to continue to measure their advertising on iOS. But he says the results have been disappointing.

“The early results we saw using SKAN were generally aligned with previous industry standard solutions, and we were among the first platforms to build on this solution and push for widespread adoption of the solution. ‘industry,’ the company said. “However, over time, we have seen SKAN measurement results diverge significantly from the results we have seen on other proprietary and third-party measurement solutions, making SKAN unreliable as a stand-alone measurement solution.”

The company added that “Advertisers are no longer able to understand the impact of their unique campaigns based on factors such as the time between viewing an ad and taking an action or the time spent viewing. advertising. Additionally, real-time campaign and creative management is hampered by extended reporting times, and advertisers are unable to target advertising based on whether or not people have their app installed.

Write to Eric J. Savitz at [email protected]


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