By Sheila Dang

(Reuters). Snap Inc (NYSE) fell short of Wall Street’s estimates of quarterly revenue on Thursday as Snapchat Inc, owner of Snapchat photo messaging app Snapchat (NASDAQ:), said that Apple Inc privacy changes on iOS devices had hampered the company’s ability target and measure digital advertising.

Santa Monica, California-based Company said this was due to global supply chain disruptions as well as labor shortages. Companies were forced to reduce their advertising spend.

Snapchat is used by many advertisers in beauty, fashion and consumer products industries.

Snap stated that although the Apple privacy updates (which prevent digital advertisers tracking iPhone users without consent) were anticipated to affect third quarter results but an Apple ad measuring tool “didn’t scale as expected”.

According to Refinitiv’s IBES data, the revenue for the third quarter ended September 30th was $1.07 Billion, which is below consensus estimates of $1.1 Billion.

Snap is one of the largest social media platforms to release earnings. The Snap results could be interpreted as a negative. Facebook Inc (NASDAQ: Twitter Inc (NYSE:) The release of third quarter results is scheduled for next week.

Snap stated that it expected the Apple privacy and supply chain disruptions issues to continue into the fourth quarter.

The number of daily active users, an indicator that investors and advertisers closely track, rose 23% over the year to 306,000,000, exceeding analyst expectations of 301.9 Million.

Snapchat has created new features to help users attract and keep them. These include the ability for friends to share virtual games and to locate restaurants or stores using a map.

The net loss for the quarter was $72million or 5 Cents per Share, a decrease of $199.9 Million or 14 Cents per Share in the prior year.

Snap predicts fourth quarter revenues between $1.16 billion and $1.2 billion. Snap also forecasts daily active users of 316 million up to 318 millions.