Why is this important: Snapchat’s quarterly results pushed down Google and Facebook shares after office hours, fearing their business would be affected by Apple’s changes as well.
- Facebook said last month that Apple’s new application tracking transparency feature would continue to hurt its advertising business in the third quarter.
- “Overall, these changes have upended many of the industry standards and advertiser behaviors that relied on IDFA (Apple’s Unique Device Identifier for Advertising) over the past year. decade, ”Snapchat said in prepared remarks.
Details: Snapchat said that while it anticipated some degree of business disruption, “the new measurement solution provided by Apple has not evolved as we expected, making it more difficult for our advertising partners to measure and to manage their advertising campaigns for iOS “.
- The company also said that supply chain challenges caused by the pandemic also hampered its advertising business in the last quarter, “with our advertising partners facing a variety of supply chain disruptions and shortages. labor “.
- Apple’s changes also impacted Snapchat’s revenue. The company missed Wall Street’s earnings expectations, which also likely weighed on Snapchat’s share price.
By the numbers, by CNBC:
- Adjusted earnings per share: 17 cents against 8 cents planned by Refinitiv
- Returned: $ 1.07 billion vs. $ 1.10 billion forecast by Refinitiv
- Global Daily Active Users (DAU): 306 million against 301.8 million forecast by StreetAccount
- Average revenue per user (ARPU): $ 3.49 versus $ 3.67 forecast by StreetAccount
Yes, but: Snapchat said its advertising business continues to grow in the direction it wants.
- Company chief commercial officer Jeremi Gorman said its direct response ad business is growing faster than its branded ad business, highlighting Snapchat’s continued success in attracting small and medium businesses to its platform. – self-service ad form.
- It also exceeded Wall Street’s expectations for user growth. The company now has more than 300 million daily active users worldwide, an increase of 57 million year over year.
- The company has grown its daily active user base by more than 20% in the past four consecutive quarters.