Parent company Snapchat has warned that next quarter revenue will be between $ 1.16 billion and $ 1.2 billion, well below the current consensus estimate of $ 1.4 billion, according to S&P Capital. IQ.
The rules, which Spiegel says have “shaken up” the industry, require apps in Apple’s App Store to obtain explicit permission from users to follow them for advertising purposes.
During a call with investors, Spiegel said rebuilding the ad infrastructure was a priority, but he couldn’t say exactly how long it would take to adjust to Apple’s privacy paradigm.
“It was definitely a frustrating setback for us,” he said. “But I think in the long run these changes in privacy, and the protection of the privacy of iOS users. . . is something we fully support.
He added: “We’ve certainly seen some early signs of success, but it’s going to take a little while. . . The underlying performance of the advertising platform is still very strong.
Snap also saw a 57% increase in revenue to $ 1.07 billion in the three months to the end of September, down $ 3 million from its previous revenue forecast. Net losses declined 64% to $ 72 million in the quarter.
Spiegel also cited broader macroeconomic challenges around the coronavirus pandemic that affected results, including advertiser supply chain issues and labor shortages.
Snap, whose shares were up 52% this year at market close on Thursday, lost nearly 24% of their value within minutes of the after-market announcement, wiping out $ 28.5 billion from its value Merchant.*
Meanwhile, shares of Facebook, which publishes its results on Monday, fell 4.5% after hours. Other “super publishers” reported smaller declines outside of business hours: Alphabet shares were down 2.8%, Pinterest was down 2.9%, and Roku was down 3.2%.
Apple’s changes mean that advertisers no longer receive real-time granular information about the performance of their ads and instead must wait 72 hours for aggregated data.
Some observers feared the impact of the changes would be “apocalyptic,” while others were optimistic that they would have a more moderate effect.
Still, some advertisers are investing more money in “safe haven” services that still offer granular data, like Android and Apple Search Ads.
Facebook said last month that it had become “harder to measure [the effectiveness of ad] campaigns on our platform ”and estimated that it“ underreported iOS web conversions by about 15 percent ”.
*Snap’s market value variation has been updated to match the after-hours stock price movement