
Snap Inc. CEO Evan Spiegel acknowledged during the company’s fourth-quarter earnings call that the ongoing uncertainty surrounding TikTok’s future in the United States has positively impacted Snap’s business. While careful not to overstate the effect of TikTok’s brief outage, Spiegel emphasized that the overall environment of uncertainty has been a tailwind for Snap.
One of the key features attracting users to Snapchat is Spotlight, Snap’s short-form video platform that serves as a direct competitor to TikTok. With many creators already present on Spotlight, the platform is well-positioned to capture additional talent should TikTok face further disruptions in the U.S. Snap has also been actively onboarding creators through its Snap Star program, resulting in thousands of new creators joining the platform. This has fueled significant growth, with the number of creators posting content on Snapchat increasing by over 40% year-over-year in the fourth quarter.
Spiegel also highlighted the impressive growth of public content on Snapchat. He noted that in the fourth quarter, the platform reached a milestone of one billion public posts per month. This demonstrates the rapid expansion of Snapchat’s public content ecosystem, which Snap intends to continue focusing on as a core part of its strategy.
Snap’s fourth-quarter results reflect this positive momentum. The company reported reaching 453 million daily active users, an increase of 39 million from the previous quarter. Snap also saw strong financial performance, with revenue of $1.55 billion, up from $1.36 billion the previous year.
The uncertainty surrounding TikTok has had a ripple effect across the social media landscape. In addition to Snap, several other platforms, including the Chinese-owned RedNote, YouTube, and Meta, have also reported increased user engagement. This suggests that users are seeking alternative platforms amidst the uncertainty surrounding TikTok’s future.
Snap’s success in capturing users and content creators during this period of uncertainty highlights the company’s ability to adapt and capitalize on changing dynamics in the social media market. With its focus on innovation and user experience, Snap appears well-positioned for continued growth in the evolving digital landscape.