Snap, the maker of the Snapchat app and Spectacles augmented reality glasses, said during its third-quarter earnings report in October that Apple’s privacy changes were having an unexpected impact on its business. But the company is adapting, Snap said in its fourth-quarter earnings report Thursday, and the larger impacts of Apple’s change could be to blame for that.
What is the Metaverse and why is it important?
The origins. The word “metaverse” describes a fully realized digital world that exists beyond the one we live in. It was invented by Neal Stephenson in his 1992 novel “Snow Crash”, and the concept was further explored by Ernest Cline in his novel “Ready Player One”.
“We’re making solid progress,” said Jeremi Gorman, Chief Commercial Officer of Snap. The company offers its own measurement tools for advertisers to gauge the impact of their ads, and those tools are now used by more than 75% of its direct-response advertisers, Ms. Gorman said.
In its earnings report, Snap said it exceeded analysts’ expectations for revenue and user growth. In the last three months of 2021, Snap’s revenue was $1.3 billion, up 42% from the same period a year ago. Daily active users grew to 319 million, an increase of 20%. The company’s profit was $22.5 million.
Snap’s stock price rebounded after the news, climbing more than 50% in after-hours trading on Thursday.
In the last three months of the year, Pinterest’s revenue hit $847 million, up 20% from the same period a year ago, the company said Thursday. Its profit was $175 million, down 16% from 2020. Pinterest’s share price rose 29% in after-hours trading.
In the past, Twitter has said that Apple’s privacy efforts cause little disruption to its business, as much of its advertising comes from brand awareness campaigns and big events, like Olympic Games, rather than targeted advertisements. Twitter is expected to release its fourth quarter results on February 10.
But Apple, which reported fourth-quarter results last week, said privacy was profitable. Despite supply chain disruptions, Apple said iPhone sales were $71.6 billion, up 9% from a year earlier. The smartphone maker announced an 11% increase in revenue and a 20% increase in profit.