SnapAfter reporting the earnings, stock dropped 25% third-quarter earningsOn Thursday. Wall Street was disappointed that the company did not achieve its revenue expectations due to disruptions in advertising. AppleIntroduced earlier this year

Below are Snap’s reports versus Wall Street estimates.

• Shares adjusted earnings17% vs. 8% by Refinitiv
• RevenueRefinitiv forecasts $1.07 billion as compared to $1.10 billion.
• The global daily active users (DAUs), are: 306 million vs. 301.8 million per StreetAccount
• Average revenue per user (ARPU): $3.49 vs. $3.67 per StreetAccount

Evan Spiegel, Snap CEO, praised Apple’s changes for consumers. CNBC in FebruaryWhen he warned them they were a risk for Q4 earnings, he added that on Thursday, the iPhone privacy settings had an impact more severe than anticipated on Snap’s advertising revenue.

Spiegel stated in prepared remarks that while we expected some business disruption, the Apple-provided measurement system did not scale as well as we had anticipated. This made it harder for advertising partners to manage and measure their campaigns on iOS.

The shares of social media competitors Facebook and Twitter were each down nearly 7% in after-hours trading following the release of Snap’s third quarter earnings, showing investors may fear similar impact on their financial results.

Spiegel also warned that global supply chain interruptions labor shortages reduces the “short-term appetite to generate additional customer demand through advertising.”

Derek Andersen (Snap CFO) warned that Apple privacy changes, supply chain disruptions and labor shortages would mean the company will see its fourth-quarter revenues fall between $1.16 billion to $1.20 billion. Analysts had expected revenue to reach $1.36 trillion for the fourth-quarter, but that’s not what Refinitiv reported.

Andersen stated in prepared remarks that “Unfortunately these changes are taking place during a season where our advertising partners would expect their supply chain to operate at peak capacity and when we would ordinarily expect peak advertising demand and peak competition to drive peak pricing in our auction.”

Snap’s net loss has decreased 64% from $200 million to $72million a year earlier.

Spiegel stated that while it’s difficult to know the exact trajectory of these issues, the growth in our audience and adoption of our new platforms and products by our community and the efficacy and underlying effectiveness of our advertising products to performance advertisers give us confidence in both the future of the business and our ability navigate this environment, as long as we invest in our long term vision.

Snap reported 306 million daily active users, up more than 4% from the 293 million the company reported in April. This figure is almost 23% higher than the 249,000,000 daily users Snap reported last year.

In prepared remarks, the company stated that it expects to achieve between 316 and 318 millions DAUs during the fourth quarter. StreetAccount reported that this figure was higher than what analysts had predicted for the fourth-quarter, which is 311.8 million active users per day.