Snapchat sees recovery from Apple’s ad policy

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Apple’s new privacy policies have certainly had an impact on the advertising revenue of multiple companies like Meta. However, it’s not just the Facebook owner that has had its business hurt. Snap Inc. (which owns Snapchat) was also affected by the changes made to iOS, but now the company says that it is recovering from the impact.

As reported by Wall Street Journal, Snap on Thursday shared its fiscal Q4 2021 results with great numbers that beat market expectations.

The company had $1.3 billion in revenue and a net income of $22.6 million during the quarter. The social network (which calls itself a camera app) had 319 million daily active users, while the average revenue for each was $4.06 – above the expectation of $3.79.

Prior to the announcement, Snap shares dropped more than 23% due to investor concern after Facebook revealed its losses in the last quarter. However, following Snap’s good results report, its shares were up 42% in after-hours trading.

While Mark Zuckerberg has said that Facebook is rebuilding its advertising infrastructure to continue targeting iPhone and iPad users, Snapchat doesn’t seem to be too concerned. In fact, the company’s chief financial officer Derek Andersen said that Snap “began to recover from the impact of the iOS platform changes quicker than we anticipated.”

Andersen, of course, is referring to App Tracking Transparency – which is a feature introduced with iOS 14 that requires third-party apps to ask users whether they want to be tracked or not. Since online advertisements are heavily based on user data, social networks have been working on alternatives to deliver ads to iOS users.

According to Snap, it will still take some time for the platform to fully adjust to Apple’s new guidelines, but the company is “pleased with the early progress” it has had. Last year, Snap CEO Evan Spiegel confirmed that the company lost about $3 million due to advertising restrictions on iOS.

More details about Snap Inc.’s fiscal results can be found on the company’s website.

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