Twitter Inc (NYSE:TWTR) said on Thursday the impact of Apple Inc’s (NASDAQ:AAPL) recent privacy changes on second-quarter revenue was lower than expected.
What Happened: The Jack Dorsey-led social media giant said that it was too early to assess the long-term impact of Apple’s App Tracking Transparency feature in iOS 14.5 and the hit was more muted than the company expected.
“So far we're pleased with what we've seen, but it's too early to call a long-term trend,” Twitter Chief Financial Officer Ned Segal said in a post-earnings call with investors.
“It's really not been that long here, not everybody is upgraded and agencies and advertisers in the broader ecosystem likely have not fully adjusted yet.”
Twitter said it has issued prompts for iOS 14.5 or higher accounts for Apple users in a bid to support App Tracking Transparency.
See Also: Snap, Twitter Surge On Q2 User Growth, Revenue Beats
Why It Matters: Brian Bowman, CEO at Consumer Acquisition, said Apple's app tracking transparency policy has had a devastating impact and iOS advertisers are experiencing a 15-20% revenue drop and only 20% of consumers have said yes to the ATT prompt allowing apps to personalize ads.
Earlier this year Apple released the ATT feature that restricts tracking consumer data unless users allow it.
Facebook Inc. (NASDAQ:FB) has been engaged in a bitter war-of-words with Apple over the privacy-related rule changes.
Price Action: Twitter shares closed 0.1% higher at $69.57 on Thursday and were up 5.65% in the extended hours after market close.
Read Next: Why Facebook Is Warning Against The Apple Impact On Revenue In Coming Quarters