Evan Spiegel’s comment on Snap’s missed Q3 2021 earnings
Snap the parent company of “Snapchat” has announced its third-quarter earnings report for 2021. And it has missed the very important and crucial revenue metric in a concerning way due to Apple’s privacy features that were implemented earlier at the start of this year. Nobody expected Snap to have this much impact because of the privacy settings change. Since Snap has always stayed a trustworthy company when it comes to the matter of user privacy and data protection.
The reason why it's so concerning to me is that Snap missed its revenue metric largely in the wake of Apple’s iOS privacy update for targetted Ads. Everybody knows that Apple’s privacy updates are here to stay. And that’s the problem.
Now, coming back to the topic of this post. Evan Spiegel has some comments on what has actually happened behind the scenes in order for Snap to miss the earnings expectations and where things can go in the future.
The same will be mentioned below.
First comment: “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,” Mr. Spiegel on Q3 2021 earnings.
Evan clearly explains how Apple’s privacy changes did not stand in line with Snap’s core business of advertising. Or at least as much as he expected it to be. Due to which the advertising partners had a difficult time in both managing and runnings their respective campaigns. This shows how important accurate data is when it comes to digital advertising.
Second comment: “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 give 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,” Mr. Spiegel on Q3 2021 earnings.
I believe and agree with this second comment of Evan wholeheartedly. Since I know and have seen both Snapchat and Evan Spiegel successfully recover out of even bigger problems than this previously in the past four-plus years.
I know for sure how innovative of a company Snapchat is and that is quite enough to overcome almost any kind of earnings difficulties like this one mentioned above.
Just to give you the reader an example. Snapchat is so innovative that in the years 2016, 17, 18 the only thing Facebook did was copy all the features that Snapchat brought to the market. It's a big topic to discuss for another day.
Anyways, I hope Evan Spiegel will figure this out and come back stronger than before.
Thank you for reading this, and God Bless Everyone.
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