Snap, Facing Same ‘Headwinds’ as Facebook, Reports First-Ever Quarterly Profit

Lauren Feiner, CNBC:

Snap reported its first quarterly net profit on Thursday, and beat analyst estimates for the fourth quarter on earnings, revenue and user growth. [...]

Snap has to contend with similar headwinds as Meta, which warned that it anticipates a $10 billion revenue hit in 2022 resulting from Apple’s privacy changes on iOS that make it harder to target consumers with advertiser content.

Snap also distributes its app on Apple iPhones and serves advertising content to monetize its business. But Snap’s direct response advertising businesses experienced a recovery from the iOS changes “quicker than we anticipated,” according to prepared remarks for CFO Derek Anderson for the company’s analyst call.

During the Q&A period, Andersen said that Snap has been mindful to make privacy inherent to its products and as a result, the changes caused by the iOS changes are “likely to be experienced differently for our business than perhaps for others.”


Thursday, 3 February 2022