Snapchat’s parent company surpassed $1 billion in quarterly revenue for the first time ever, but worse-than-anticipated earnings, according to a report by CNN on Friday.

  • Shares of Snap plummeted nearly 25% in after-hours trading after the company’s earnings report. 
  • The report cautioned that its revenues took a hit from the adjustments to advertising metrics on iPhones.
  • Jeremi Gorman, Snap’s chief business officer, stated that the company “grappled with industry changes to the approach advertising is targeted, optimized, and measured on iOS that led to a more significant impact on the business than expected.
  • Apple installed new privacy features as part of its iOS 14.5 update earlier this year that gives iPhone users stay away from apps that track their behavior and sell their personal data to advertisers.

The move has caused major concerns among companies that rely on advertising for the majority of their revenues, with Facebook (FB) being vocal about the resulting impact on its business. SNAP down -22.34%, FB down -4.62% on Pre-market trading