On Thursday, Snap Inc., maker of the photo-messaging app Snapchat, warned that upcoming privacy changes by Apple could hurt Snap’s ad business although fourth-quarter results beat analysts’ estimates for user growth and revenue.
Snap stock declined 7% to $54.02 in trading after the bell.
Snap said Apple’s planned privacy changes, which will ask iPhone users to consent to personalized ads, could present a “risk” to advertiser demand, but added it was unclear how the changes could affect Snap’s business in the long-run.
“The disruption to ad targeting caused by the iOS 14 privacy changes will clearly be a worry for Snap, which has been steadily growing its armory of ad formats and advertisers,” said Tom Johnson at ad agency Mindshare Worldwide.
Revenue, which Snap generates mainly from ad sales, grew 62% to $911 million, easily beating Wall Street’s consensus estimate of $857.4 million.
Via: Reuters
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