![]() This tracking on Apple devices was enabled through a system known as “Identifier for Advertisers” (“IDFA”). Snap’s DR advertising business heavily depended on the Company’s ability to track users’ activity on their devices. Both before and during the Class Period, the most critical segment was “direct response” or “DR” advertising, which consisted of in-app ads that would ask the user to take a specific action, such as downloading an app or making a purchase. Snap’s revenue depends entirely on advertising. ![]() Snap is a social media company whose primary product is a free mobile chatting application called Snapchat. The action asserts claims under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against Snap and its former Chief Business Officer Jeremi Gorman (“Gorman”), and under Section 20(a) of the Exchange Act against Gorman and Snap’s CEO Evan Spiegel. (“Snap” or the “Company”) publicly traded securities, and/or sold Snap put options, between Apand October 21, 2021, inclusive (the “Class Period”). In Thursday's release, Snap said that its Snapchat+ subscription service "reached over 1.5 million paying subscribers in Q3 and is now offered in over 170 countries." Snap debuted the subscription service in June as a way for users to access exclusive and pre-release features for $3.99 a month.The action is brought on behalf of all persons and entities who purchased or otherwise acquired Snap Inc. Snap also ended the production of its Snap Originals premium shows. Snap said during the quarter that, as part of its plan to reduce costs, it would shutter several expensive projects, including its Pixy drone, which it planned to sell for $230. The company had $4.4 billion in cash, cash equivalents, and marketable securities as of Sept. Should the stock close on Friday at its after-hours level, it would be the lowest since early 2019.Īs in the second quarter, Snap's board authorized a stock repurchase program of up to $500 million. Snap shares have lost over three-quarters of their value this year and are down more than 30% since July, when the company reported second-quarter results that missed on the top and bottom lines. The economic slowdown and potential for recession has also led many advertisers to pause or reduce spending on their campaigns. Facebook parent Meta reports quarterly results next week. Rival social media companies, most notably Facebook, have been similarly hurt by Apple's changes. Snap added that revenue growth is likely to keep decelerating in the fourth quarter, as that period "has historically been relatively more dependent on brand-oriented advertising revenue," which declined in the latest period.Īpple's 2021 privacy update to iOS remains a barrier in Snap's ability to track users across the web, thus weakening its online advertising business. "Forward looking revenue visibility remains incredibly challenging, and this is compounded by the fact that revenue in Q4 is typically disproportionately generated in the back half of the quarter, which further reduces our visibility," the company said. Snap also said that it wouldn't give guidance for the fourth quarter, marking a second consecutive period in which it's chosen not to offer a forecast. "We are finding that our advertising partners across many industries are decreasing their marketing budgets, especially in the face of operating environment headwinds, inflation-driven cost pressures, and rising costs of capital." "Our revenue growth continued to decelerate in Q3 and continues to be impacted by a number of factors we have noted throughout the past year, including platform policy changes, macroeconomic headwinds, and increased competition," Snap said in its letter to investors. Severance and related costs made up a big part of the restructuring charge in the period. In August, Snap announced that it would lay off 20% of the company's roughly 6,000 employees as part of a major restructuring plan. Average revenue per user (ARPU) was down 11% to $3.11. Personal Loans for 670 Credit Score or Lowerĭaily active users increased 19% year-over-year, showing the company is still able to attract people to the service despite the struggles on the business side. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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