Snap has reported US$1.3 billion in revenue for the fourth quarter of 2021.
The figure represents a 42% year-on-year increase. Revenue for the year was up 64% compared to the year prior, reaching US$4.1 billion.
Daily active users were 319 million in the fourth quarter, up by 54 million, or 20% year-over-year.
Derek Andersen, Snap chief financial officer, says there were positive signs from advertisers throughout the quarter, with better than anticipated demand from its Direct Response advertising partners.
“Direct Response advertising business was once again the largest driver of our growth,” Andersen says.
“We observed that advertisers began to recover from the initial disruption caused by the iOS platform changes, and their resultant impact on the ability of our advertising partners to measure the results of their advertising investments.”
However, looking ahead to the next quarter, Andersen says the operating environment remains “challenging” due to iOS changes and supply-chain issues.
“Many of the supply chain and labor related headwinds our advertising partners faced in Q4 remain challenges as we enter Q1,” he says.
“In addition, while we made significant progress in navigating the iOS platform changes in Q4, we believe that it will take at least a couple more quarters for our advertising partners to build full confidence in our new measurement solutions.
“Lastly, the prior year comparisons are incrementally tougher as we enter 2022 with revenue growth having accelerated by 4 percentage points in Q1 of 2021.”
Meta (Facebook) released its fourth quarter financial results yesterday. The social media company also cited headwinds as a result of Apple’s iOS changes, and supply-chain disruptions.
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