Shares of Snap plunged -23% during after-hours trading Thursday, after the social media company said its ad business was hurt by changes in Apple’s ad tracking rules.
“Our advertising business was disrupted by changes to iOS ad tracking that were broadly rolled out by Apple in June and July,” Snap said in a statement. “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 ad partners to measure and manage their ad campaigns for iOS.”
Snap incurred a loss of -5 cents a share in the latest quarter, vs. a loss of -14 cents a share in the same period a year ago. Analysts expected a loss of -10 cents a share.
Revenue rose + 57% from the year-ago quarter to $1.07 billion, but fell short of analysts’ expectations of $1.1 billion.
For the fourth quarter, the company is expecting sales in the range of $1.165 billion to $1.205 billion below Street forecast of $1.36 billion.