“While we anticipated some degree of business disruption, the new Apple-provided measurement solution did not scale as we had expected, making it more difficult for our advertising partners to measure and manage their ad campaigns for iOS.” Snap said the issue “was compounded by the ongoing macroeconomic effects of the global pandemic, with our advertising partners facing a variety of supply-chain interruptions and labor shortages.” The company said that factor reduced the “short-term appetite to generate additional customer demand through advertising at a time when their businesses are already supply-constrained.” “Our advertising business was disrupted by changes to iOS ad tracking that were broadly rolled out by Apple in June and July,” the company said in remarks prepared for the company’s earnings conference call.

Snap blamed the miss in part on changes in Apple’s (AAPL) advertising tracking practices that make it harder to track consumer behavior across apps and websites. Snap is projecting adjusted Ebitda for the quarter of between $135 million and $175 million. The company said it grew daily average users in the quarter by more than 20% to 306 million.įor the fourth quarter, Snap is projecting revenue of $1.165 billion to $1.205 billion, well shy of the Street consensus forecast of $1.36 billion. On a non-GAAP basis, the company earned 17 cents a share in the quarter, beating the Street consensus of 8 cents a share. Adjusted Ebitda, or earnings before interest, taxes, depreciation, and amortization, was $174 million, well above its guidance range of $110 million to $120 million. Snap is the first of the companies to report September quarter results.įor the third quarter, Snap posted revenue of $1.067 billion, up 57% from a year ago, and below the company’s guidance range of $1.07 billion to $1.085 billion. Facebook (FB) was down 3.9% on the news, while Twitter (TWTR) was off 4.5%, Pinterest (PINS) had fallen 2.6%, and Alphabet (GOOGL) had slipped 1.8%. Snap (ticker: SNAP) stock was down 21% in premarket trading Friday. The miss weighed heavy on shares of other major social-media companies. The parent of Snapchat said its advertising revenue was hurt more than expected by Apple ‘s change in the rules surrounding advertising on mobile apps. Snap stock plunged in late trading Thursday after the social-networking firm posted disappointing revenue growth and guidance that fell shy of estimates.

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