Snap, like any other tech company, has experienced a struggle in maintaining its connection with Apple because of its strict ad privacy policy. This feature has reportedly impacted many businesses when it comes to advertising revenues over the past years.
According to the latest report, the social media giant was aware of the implications of these privacy changes in iOS. However, it cited that it was now seeing a recovery from the impact of the Cupertino-based company's implementation.
Snap Beats its Expectations in Q4 2021
On Thursday, Feb. 3, The Wall Street Journal reported that Snap posted its earnings during the fourth quarter of 2021. Amid the privacy changes, the company was able to surpass its expectations for the said period.
The social media firm reportedly netted a revenue of $1.3 billion. It also recorded $22.6 million as its net income in the same quarter.
As of press time, there are over 319 million Snapchat users every day. Before the earnings call, it was expected that it would only achieve $3.79 in the average revenue for each active user. However, it managed to collect $4.06 for the record.
Previously, Snap said that it has suffered from over 23% drop in shares following a report that Facebook experienced huge losses in the final quarter.
It turned out that Snap posted good results on its earnings report. During the after-hours trading, the company reportedly noted that its shares skyrocketed to 42%.
Related Article: Snap Faces Lawsuit from Investor Because of Apple's App Tracking; Combined Loss as much as $9b
Snapchat is Recovering From the Impact of App Tracking Transparency
In another article from 9to5Mac, Facebook (now Meta) CEO Mark Zuckerberg shared his plans of constructing its advertising infrastructure anew for the Apple product users.
However, it did not share a similar page with Snapchat. According to Derek Andersen, the chief financial officer of Snap, the company is now recovering from the aftermath of the privacy changes imposed by Apple.
The App Tracking Transparency feature started in iOS 14. This update allows users if they want to be tracked or not by third-party applications. This is a huge challenge for a company especially when it comes to ad delivery for iOS users.
Snap said that it was "pleased with the early progress" that it experienced so far, but more time would still pass before it could "fully adjust" to the new privacy guidelines.
In October 2021, Tech Times reported that Snap CEO Evan Spiegel said that the cause behind the revenue drop is Apple's ad tracking policy. During that time, they lost $3 million because of these privacy changes on the iOS platform.
Aside from Facebook and Snap, the ATT privacy restriction also impacted other tech companies such as Twitter and YouTube. The revenue drop for these firms sat at 12% according to data collection agency Lotame.
This article is owned by Tech Times
Written by Joseph Henry
