Apple’s advertising policy is too strong, Snap Q3 revenue is inferior after the market plunges 22%, Facebook and Twitter are all down | Anue Juheng

Snap (SNAP-US) Thursday (21st) announced the third quarter financial report after the market. Due to the impact of Apple’s iOS change privacy settings, the advertising business suffered. Tumbled nearly 22%.

Snap Chief Financial Officer Derek Andersen warned that due to Apple’s privacy changes, supply chain disruption and labor shortages, the fourth quarter revenue may be between 1.16 billion yuanDollarTo 1.2 billionDollarbetween.According to Refinitiv, this value is lower than the 1.36 billion estimated by analystsDollar

Andersen said: “Unfortunately, the timing of such changes coincides with the season when our advertisers usually expect their supply chains to operate at peak capacity. It is also the peak period of competition where we expect peak advertising demand to drive ad auctions.”

It was recently confirmed that Snap closed down 0.71% on Thursday to 75.11 per share Dollar, After the market fell 21.18% to 59.15 Dollar

After Snap’s financial report was announced, social media peers on Facebook (FB-US) And Twitter (TWTR-US) It fell by nearly 7% after the market, and then converged. It still fell by about 4%, indicating that investors may be worried about similar effects on the performance of the two companies.

Q3 (As of 9/30) Key Financial Report Data vs. Consensus of Analysts’ Expectations
  • Adjusted EPS: 17 cents vs. 8 cents (according to Refinitiv survey)
  • Revenue: 1.07 billionDollar vs. 1.1 billionDollar (According to Refinitiv survey)
  • Global Daily Active Users (DAU): 306 million vs. 301.8 million (according to StreetAccount survey)
  • Average revenue per user (ARPU): 3.49 Dollar vs. 3.67 Dollar (According to StreetAccount survey)
  • Net loss: a year-on-year decrease of 64%, from a loss of 200 million last yearDollarReduced to 72 millionDollar

Snap CEO Evan Spiegel praised Apple in an interview in February this year (AAPL-US) Make changes that are beneficial to consumers, but also warn that this will pose a risk to the performance of the fourth quarter. However, he said on Thursday that the impact of the iPhone’s new privacy settings on Snap’s advertising business exceeded his expectations.

Spiegel said: “Although we expected a certain degree of business frustration, the new measurement solution provided by Apple did not measure as we previously expected, making it more difficult for our advertising partners to measure and manage their advertising campaigns on iOS. .”

Spiegel also warned that global supply chain disruptions and labor shortages have reduced the short-term appetite for companies to “generate additional customer demand through advertising.”

However, the earnings report also has positive news. Snap’s DAU in the third quarter was 306 million, an increase of more than 4% from the 293 million announced in the second quarter, and an increase of nearly 23% from the same period last year.

Snap expects DAU to reach 316 million to 318 million in the fourth quarter. According to StreetAccount, this exceeded the 311.8 million people expected by analysts.


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