Snap IncThe company released its third-quarter results after trading on Thursday, and its revenue and performance guidance fell short of market expectations.
According to the financial report, Snap Inc's adjusted earnings per share in the third quarter were 17 cents per share, with market expectations of 0.08 dollars; revenue of 1.07 billion dollars and market expectations of 1.1 billion dollars.
The company said that the number of global daily active users in the third quarter was 306 million, and the market expected 302.1 million; revenue in the fourth quarter is expected to be $1.17 billion-1.21 billion, and the market is expected to be $1.35 billion.
Snap Inc's advertising business was hit hard by new privacy rules introduced by Apple Inc earlier this year. Evan Spiegel, the company's chief executive, warned in February that this posed a risk to fourth-quarter results, but he said on Thursday that iPhone's privacy settings had a greater-than-expected impact on Snap Inc's advertising business.
After the announcement of the results, Snap Inc's share price plummeted 25% in after-hours trading, while its competitor Facebook IncAnd TwitterShares fell nearly 7 per cent in after-hours trading, suggesting that investors may be worried about a similar impact on their financial performance.