Meanwhile, submissions to Snapchat Spotlight, the company’s user-generated content section patterned after TikTok, more than doubled over the prior quarter (but Snap didn’t disclose figures).

“We’re now operating at the scale necessary to navigate significant headwinds, including changes to the iOS platform that impact the way advertising is targeted, measured, and optimized, as well as global supply chain issues and labor shortages impacting our partners,” Spiegel said in announcing the results. The DAU count of 306 million for Q3 was up 23% year-over-year, as the social messaging and media company continued to show strong growth globally. Snap’s acknowledgement that it underestimated the impact of iOS opt-in ad tracking fueled concerns for investors in other internet companies, with after-hours trading declines for Facebook (-4.7%), Google (-2.3%) and Twitter (-3.4%).Įven with the iPhone privacy change, it was Snap’s first quarter of reaping more than $1 billion in revenue. CFO Derek Andersen said on the earnings call that it’s still unclear “what the longer term impact of the iOS platform changes may be, and this may not be clear until at least several months or more after the ecosystem stabilizes and advertisers are able to fully implement the new solutions we are developing.” 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 advertising partners to measure and manage their ad campaigns for iOS.”Īpple’s iOS 14.5 update now requires double opt-in from users to allow ad tracking. In prepared remarks, Spiegel said Snap’s advertising business “was disrupted by changes to iOS ad tracking that were broadly rolled out by Apple in June and July. Snap estimates DAUs will be 316 million-318 million. For Q4, Snap expects a revenue slowdown: The company forecast net sales of between $1.165 billion and $1.205 billion, or year-over-year growth of 28%-32% (lower than prior Wall Street estimates).

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