Snap, the parent company of disappearing messaging app Snapchat, reported third-quarter revenue that missed Wall Street’s expectations on Thursday. At one point, Snap’s shares plunged nearly 25% in after-hours trading to $56.36 per share.
The company posted $1.07 billion in revenue in the third quarter, below the $1.1 billion forecasted by analysts surveyed by Thomson Reuters. Snap earned 17 cents per share, beating estimates of 8 cents per share.
Snap’s revenue miss comes after Apple introduced a new feature called App Tracking Transparency that prompted developers to ask users for permission to track them. Social media companies have warned the privacy feature could affect ad targeting. Snap also faces stiff competition from larger tech companies such as Google and Facebook.
Snap CEO Evan Spiegel said in prepared remarks that Apple’s privacy feature disrupted Snap’s ads business more heavily than the company expected.
“While we anticipated some degree of business disruption, the new Apple- provided measurement solution did not scale as we had expected, making it more difficult for our advertising partners to measure and manage their ad campaigns for iOS,” he said.
Snap grew its audience to 306 million daily active users in the third quarter, up 23% compared to the same period last year.