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.
MacDailyNews Take: These firms, Snap, Google, Facebook, have been running roughshod over people’s privacy rights for so long they actually think they are entitled to people’s personal data without explicitly being granted permission.
With App Tracking Transparency, Apple is delivering a much needed wakeup call to these cancerous leeches!
Privacy means people know what they’re signing up for, in plain English, and repeatedly. I’m an optimist; I believe people are smart, and some people want to share more data than other people do. Ask them. Ask them every time. Make them tell you to stop asking them if they get tired of your asking them. Let them know precisely what you’re going to do with your data. — Steve Jobs