Snap Inc (NYSE: SNAP) is trading significantly lower Friday after the company announced worse-than-expected third-quarter revenue results and issued fourth-quarter guidance below estimates.

Snap reported quarterly adjusted earnings of 17 cents per share, which beat the estimate of 8 cents per share. The company reported quarterly revenue of $1.07 billion, which came in below the estimate of $1.1 billion.

Snap announced that daily active users were 306 million in the third quarter, representing an increase of 23% year-over-year.

Snap expects fourth-quarter revenue to be in a range of $1.165 billion to $1.205 billion versus the estimate of $1.36 billion.

View more earnings on SNAP

Related Link: Snapchat Takes Other Social Media Stocks Down With It On Apple Privacy Changes Warning: What You Should Know

The company said advertising revenue was negatively impacted by Apple Inc's (NASDAQ: AAPL) privacy changes surrounding advertising on mobile apps.

“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," said Evan Spiegel, CEO of Snap.

• Keybanc analyst Justin Patterson maintained Snap with an Overweight rating and lowered the price target from $90 to $85.

• JMP Securities analyst Andrew Boone maintained Snap with a Market Outperform rating and lowered the price target from $94 to $82.

SNAP Price Action: Snap has traded as high as $83.34 and as low as $34.52 over a 52-week period.

The stock was down 20.10% at $60.01 at time of publication.

Photo: Stock Catalog from Flickr.

Latest Ratings for SNAP

View More Analyst Ratings for SNAP
View the Latest Analyst Ratings

See more from Benzinga

• Click here for options trades from Benzinga

• How Jim Cramer Would Play Ford Stock Ahead Of Q3 Earnings

• Why Bitcoin Could Reach 0,000 (Or Higher) 'In The Next Few Months'

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.