Snapchat's stock was down in after-hours trading Thursday, despite beating Wall Street expectations on user growth, as well as top and bottom lines.
Why it matters: The camera company warned investors that its forecast for this quarter would be lower than expected, in part due to a drop in advertiser demand in the two weeks following the Capitol siege, as well as upcoming Apple privacy changes.
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Details: Like rival Facebook, Snapchat warned investors that Apple's upcoming iOS privacy changes "will present another risk of interruption to (advertiser) demand."
Snapchat, like Facebook, does have a number of app install advertisers.
Those two factors likely impacted the company's stock drop.
By the numbers, per CNBC:
Adjusted earnings per share: 9 cents vs. 7 cents per share forecast by Refinitiv
Revenue: $911 million vs. $857.4 million forecast by Refinitiv
Global daily active users (DAUs): 265 million vs. 257.79 million per FactSet
Average revenue per user (ARPU): $3.44 vs. $3.34 forecast by FactSet
Between the lines: Snapchat also said its new user generated video feature, Spotlight, saw 100 million monthly active users in January, suggesting that demand for the TikTok-style video trend can be replicated on other apps. Snapchat's user base is mostly under age 30.
In an effort to lure users to try the new feature, Snapchat said last quarter it will give away $1 million total to the creators of the top-performing videos on Spotlight each day for the remainder of 2020, and potentially beyond.
The big picture: Snapchat has been able to avoid most of the regulatory and industry pressure around privacy, in part due to the way it's been engineered and structured.
As Axios has previously noted, Snapchat had its best year in 2020, increasing its stock price from roughly $16 in January to more than $52 today.
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