RTTNews | Oct 22, 2021 07:39AM EDT

07:38 Friday, October 22, 2021 (RTTNews.com) - Shares of Snap Inc. (SNAP) are down more than 20% in the pre-market trade on Friday after the parent company of Snapchat missed its third-quarter revenue guidance as the company's advertising business was disrupted by changes to ad tracking in apple's iOS.

"While we are excited about the continuing growth of our business and improvement in our cost structure, we missed the lower end of our guidance by $3 million due to a few key factors, including changes to advertising tracking on iOS and macroeconomic factors that have impacted our advertising partners," said Evan Spiegel, Chief Executive Officer of Snap.

The company's revenue, however, increased 57% year-on-year to cross $1 billion for the first time at $1.067 billion. This compares with its earlier forecast of $1.07 billion - $1.09 billion provided while reporting second-quarter results.

"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," Spiegel added.

Net loss for the quarter narrowed to $71.96 million or $0.05 per share from net loss of $199.85 million $0.14 per share last year.

Excluding items, the company reported earnings of $0.17 per share that surpassed the average estimate of analysts polled by Thomson Reuters at $0.08 per share.

SNAP closed Thursday's regular trading at $75.11, down $0.54 or 0.71%. The stock is currently at $59.97.

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