Stockmarket

Snap Crackles on Q3 Revenue Miss as Apple Privacy Changes Weigh



© Reuters.

By Yasin Ebrahim

 

Investing.com – Snap slumped in after-hours trading Thursday after reporting mixed quarterly results and signs of struggles to make money off of users following the impact on ad-revenue from Apple (NASDAQ:)’s privacy changes to its mobile operating system.

 

Snap stock (NYSE:) slumped 25% in afterhours trade.

 

Snap reported EPS of 17 cents on revenue of $1.07 billion, compared with estimates for a loss of 10 cents per share on revenue of $1.1 billion.

Daily active users, or DAUs, a key performance metric for social media companies, jumped 23% to 306 million for the quarter year-on-year.

 

The miss on the top line comes on signs that the Apple’s changes to iOS has started to slow growth. 

 

Average revenue per user for the quarter was up 28% to $3.49 year-on-year, but sequentially was up 4.2% compared with 22% in Q2.

 

“We’re now operating at the scale necessary to navigate significant headwinds, including changes to the iOS platform that impact the way advertising is targeted, measured, and optimized, as well as global supply chain issues and labor shortages impacting our partners,” says CEO Evan Spiegel.

 

Looking ahead to Q4, revenue was guided in a range of $1.165 billion and $1.205 billion, below consensus of $1.4 billion. 

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