Snap (NASDAQ:SNAP) stock fell heavily after reporting its third-quarter earnings on Thursday. The company’s revenue missed Wall Street expectations after its advertising business was disrupted by privacy changes Apple introduced earlier this year.
Snap CEO Evan Spiegel praised Apple’s (NASDAQ:AAPL) consumer-friendly changes in media interviews last February, when he also warned they posed a risk to Q4 earnings, but said on Thursday the iPhone’s privacy settings impacted Snap’s advertising business more than anticipated.
"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,” Spiegel said in his prepared remarks.
Spiegel also warned that global supply chain interruptions and labor shortages reduces the “short-term appetite to generate additional customer demand through advertising."
Snap’s net loss narrowed 64% to $72 million, from a loss of $200 million a year ago.
"While it is difficult to predict the trajectory of these challenges, the growth of our audience, the adoption of our new products and platforms by our community, and the underlying efficacy of our advertising products for performance advertisers gives us confidence in the future of our business and our ability to navigate this environment as we continue to invest in our long-term vision," Spiegel said.
SNAP shares plunged $15.67, or 20.9%, to $59.44 first thing Friday.
