TECH

Snap Reports Positive Impact from TikTok Uncertainty on Its Business

During Snap’s earnings call for the fourth quarter on Tuesday, CEO Evan Spiegel mentioned that the unpredictability regarding TikTok’s future has had a positive impact on their business.

“We don’t want to overanalyze the engagement boost we experienced when [TikTok] was momentarily unavailable. However, I believe the current climate of uncertainty is advantageous for our business,” he stated during the call.

One of the appealing aspects that draws users to Snapchat is Spotlight, which acts as the company’s alternative to TikTok. Numerous creators are active on the platform, and many more are expected to join if TikTok becomes inaccessible again in the U.S. this past year, Snap has introduced thousands of creators to its Snap Star program, with the number of creators sharing content rising by over 40% year-over-year in the fourth quarter, according to the company.

Spiegel also stressed the expansion of Snapchat’s public content. He noted, “In Q4, we actually achieved a billion public posts per month on Snapchat. The ecosystem for public content is growing in a very positive and healthy manner, and we will continue to prioritize this aspect in our strategy and engagement.”

In the fourth quarter, the company announced it had reached 453 million daily active users, an increase of 39 million from the previous period. Snap reported revenues of $1.55 billion, an increase from $1.36 billion the year before.

The uncertainty regarding TikTok has not only benefitted Snap but has also influenced the broader social media landscape, with various apps, including the Chinese-owned RedNote, YouTube, and Meta, experiencing increases in user engagement.

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