Snap Inc. has reportedly outperformed analysts' expectations with a 50% increase in its share price right after its advertising business managed to recover from the privacy changes implemented by tech giant Apple Inc.
Sources claim that Snap's first-quarter revenue ranges between USD 1.03 billion and USD 1.08 billion. The number of daily active users is between 328 and 330 million. Both of these statistics have exceeded the analysts' projections, indicating a strong recuperation for the firm.
Along the same line, digital pinboard company Pinterest reported revenue that was significantly higher than assumed, and its stock price went up by 20%. In contrast, Facebook's Meta Platforms Inc. recently saw a 26 percent drop in its shares, the largest single-day wipeout in market value for a US company.
According to the Meta, Apple's move has not only jeopardized advertisers' ability to target ads to potential customers, but it has also hampered the measurement of ad effectiveness.
Snap's Chief Financial Officer, Derek Andersen, stated that the company was able to recover from Apple's changes so instantly because its advertisers began using new ad measurement tools by the end of last year.
Despite this, he expressed that global labor shortages and supply chain disruptions had a big impact on advertising as demand from restaurant brands and consumer packaged goods saw a decline.
Notably, Snap's revenue for the fourth quarter was USD 1.3 billion, surpassing analysts' projection of USD 1.2 billion and logging a 42% increase over the previous quarter. Moreover, the daily active users elevated 20% year on year to 319 million, beating consensus estimates of 316.5 million.