![]() ![]() Snap's outlook wasn't terrible, but management may have set the bar too high during its investor day back in February when it proclaimed its revenue would grow roughly 50% annually over the next few years.Īt the time, Snap predicted the expansion of its self-service ads, a rising mix of higher-value video ads, new augmented reality features and games, and the expansion of its "social shopping" platform would all drive that growth.īut Snap clearly underestimated the impact of Apple's iOS update. Its ARPU also fell sequentially in Europe and the rest of the world in the third quarter and was only offset by its North American growth. Snap blamed that slowdown on Apple's ( AAPL -0.01%) recent privacy changes on iOS, which allow users to opt out of targeted advertising, and macroeconomic headwinds (such as supply chain and labor challenges) for certain advertisers. ![]() teens chose Snapchat as their favorite social media app, compared to 30% for ByteDance's TikTok and just 22% for Facebook's Instagram. Piper Sandler's latest "Taking Stock With Teens" survey supports that view. Those rising ad prices indicate that advertisers are still flocking to Snapchat to reach younger Gen Z and millennial consumers. Snap's average eCPM (effective cost per thousand impressions, or the average cost of its ads) increased 62% year over year, on top of its 20% growth in the prior-year quarter. Snap expects that growth to continue with 316 million to 318 million DAUs in the fourth quarter, which would equal 19% to 20% growth from the prior-year period. Snap attributed its robust international growth to its increased investments in localized content, marketing partnerships, language support, and creator communities. Its DAUs also increased sequentially across all three regions. Its DAUs rose 7% year over year to 96 million in North America, 11% to 80 million in Europe, and 49% to 130 million across the rest of the world.
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