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Snap Crackles on Slowing Revenue Growth as Apple Privacy Changes Weigh -Breaking

by Mike Robinson

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© Reuters.

By Yasin Ebrahim

 

Snap dropped in trading on Thursday afternoon after Snap reported mixed quarterly results. Snap is showing signs that it will struggle to make a profit off its users due to Apple’s (NASDAQ:) privacy changes regarding its mobile operating system.

 

After-hours trading saw Snap stock (NYSE 🙂 drop 25%

 

Snap reported an EPS of 17c on $1.07billion in revenue, which is compared to 10 cents per share for $1.1 billion revenue.

The quarter’s daily active users (or DAUs), a critical performance indicator for social media companies, increased 23% to 306 million.

 

This is due to signs that Apple’s iOS changes have slowed growth. 

 

Although the average revenue per user increased 28% to $3.49 for the quarter, sequentially it rose 4.2%. This was compared with Q2’s 22%.

 

“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.

 

For Q4, revenues were forecasted at $1.165billion and $1.205billion, which is lower than the consensus of $1.36billion. 

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