The parent company of Snapchat, Snap, saw its stocks drastically fall Thursday when it closed out with subpar earnings, as reported by CNBC.
Snap is blaming this decrease, in part, on Apple's new privacy policies, according to CNBC. This is in spite of the fact that back in February, Snap CEO Evan Spiegel told CNBC that Apple's then-upcoming privacy changes would not be disruptive for Snapchat's advertising and agreed that Apple's privacy choices were the right call for protecting its users, as reported by CNBC.
However, Snap did predict a stock earnings fall to some degree and told its investors in an earnings report that Apple's privacy update would pose risks to its demand for advertisers after Apple instated it, according to CNBC.
“While we anticipated some degree of business disruption, the new Apple-provided measurement solution did not scale as we had expected, making it more difficult for our advertising partners to measure and manage their ad campaigns for iOS,” Spiegel said in reports by CNBC.
Snapchat has grown from 293 million daily users to 306 million daily users since April, according to CNBC. This is more than a four percent user increase and is up 23 percent from last year's 249 million daily users.
CNBC reports that Snapchat expects to hit between 316 million and 318 million daily users in its fourth quarter, despite the lackluster stock earnings reported Thursday.
Spiegel said in reports by CNBC, “While it is difficult to predict the trajectory of these challenges, the growth of our audience, the adoption of our new products and platforms by our community, and the underlying efficacy of our advertising products for performance advertisers gives us confidence in the future of our business and our ability to navigate this environment as we continue to invest in our long-term vision."