Snap Experiences Boost from TikTok’s Uncertainty Affecting Its Business
During the fourth quarter earnings call on Tuesday, Snap CEO Evan Spiegel mentioned that the ambiguity around TikTok’s future has been advantageous for their business.
“We prefer not to overthink the increase in engagement we experienced when [TikTok] was briefly offline. Nevertheless, the prevailing uncertainty is favorable for our operations,” he stated during the call.
One of the standout features luring users to Snapchat is Spotlight, the company’s response to TikTok. Numerous creators are actively engaging on the platform, and the number is expected to grow if TikTok encounters accessibility challenges in the U.S. Over the past year, Snap welcomed thousands of creators into its Snap Star program, with the number of creators sharing content increasing by over 40% year-over-year in the fourth quarter, according to the company.
Spiegel also emphasized the expansion of Snapchat’s public content. He mentioned, “In Q4, we reached a milestone of one billion public posts monthly on Snapchat. The public content ecosystem is flourishing positively, and we intend to continue focusing on this area in our strategy and engagement efforts.”
In the fourth quarter, the company reported 453 million daily active users, an increase of 39 million from the previous quarter. Snap’s revenue reached $1.55 billion, up from $1.36 billion the year before.
The unpredictability surrounding TikTok has not only benefited Snap but has also influenced the broader social media landscape, with various platforms—including the Chinese-owned RedNote, YouTube, and Meta—experiencing boosts in user engagement.