While the number of daily active users on Snapchat has increased, the company has not been able to meet sales expectations. This had an immediate impact on Snap stock.
The company behind the popular photo app Snapchat lost around a quarter of its value in one fell swoop after falling short of sales expectations last quarter.
Snap increased sales by 57 percent year-on-year to around $ 1.067 billion (920 million euros). On the market, however, more than 1.1 billion dollars were expected. The company only narrowly missed that below its own forecast of $ 1.07 billion.
Investors, however, were not interested in the fact that the difference to the forecasts was small. Within minutes, the price in after-hours trading fell by around 25 percent. Snap blamed the data protection changes on the iPhone, among other things, for missing the forecast.
Apple’s new rules
A few months ago, Apple introduced new rules according to which app developers must explicitly ask users for permission if they want to track their behavior across different applications and services for advertising purposes. According to surveys, most users reject this, which causes some previous advertising models to falter.
While Facebook has long sharply criticized Apple’s plan, Snap has so far been forgiving. But now the Snapchat creators have stated that an alternative software tool provided by Apple for calculating advertising data has not proven to be reliable.
Meanwhile, the number of daily active users on Snapchat rose within three months from 293 to 306 million. Bottom line, Snap posted a loss of nearly $ 72 million in the third quarter – a significant improvement compared to the loss of around $ 200 million a year earlier.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
