Apple’s new privacy rules harm the revenues of the Snapchat application .. Know the details


Snap Inc, the owner of the popular Snapchat app for picture messaging, has warned that the upcoming privacy changes by “Apple” may harm the Snap Ads business, although user growth and revenue outperformed analysts’ estimates in the last quarter.

According to the Indian site gadgetsnow, Snap said that the changes that Apple is planning to require iPhone users to agree to track their data for personalized ads could pose a “risk” to advertisers’ demand, but added that it is unclear how this could affect the business in the long run. the long.

“It is clear that disabling ad targeting caused by the iOS 14 privacy changes will be a concern for Snap, which is constantly growing its inventory of ad formats and advertisers,” said Tom Johnson, chief transformation officer at advertising agency Mindshare Worldwide.

Facebook, Snap’s biggest tech competitor, is fighting a public battle against Apple’s changes, accusing the iPhone maker of anti-competitive behavior and damaging the social media company’s ad targeting business. During a call with analysts about profits, Jeremy Gorman, Snap’s chief business officer, spoke. In a different tone, saying Snap shares Apple’s philosophy of protecting users’ privacy.

“We like Apple and we think they’re trying to do the right thing for customers,” said Gorman, adding that Snap is well prepared to guide advertisers through the iOS changes, while daily active Snap users (DAUs), a metric that investors and advertisers monitor, rose 22% year-over-year. To 265 million in the fourth quarter ended Dec.31, and analysts were expecting 258 million, according to IBES data from Refinitiv.

The app achieved the largest gains outside North America and Europe, with a 55% growth in active daily users, while Snap’s revenue, which is mainly generated from ad sales, grew 62% to $ 911 million, easily beating Wall Street’s estimate of 857.4. Million dollars.

Advertisers have also been attracted to Snap’s small audience, and it has developed features that attract marketers, including Snap Map, which allow users to find local businesses near them. Snap’s net loss has narrowed to $ 113 million, or 8 cents per share, from 240.7 million. Dollars, or 17 cents a share a year ago.

In the first quarter, the company expects daily active users to grow 20% year-on-year to 275 million, and revenues from $ 720 million to $ 740 million.


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