Snapchat gained more users, along with posting strong Q4 revenue results, as it continues to establish itself as a key connective platform for younger audiences, acting as a viable alternative to the larger and more prominent social media players.
Q4+
To begin, Snapchat added 13 million more daily active users in Q4, bringing up their year’s total to 319 million, which is pretty impressive for any social platform. Based on their charts, Snap increased their overall audience by 20% YoY, seeing the most significant growth in the ‘Rest of the World’ segment, which rose by over 10 million.
Snap has been seeing rather good growth in India, as connectivity continues to evolve there. Remember that TikTok, before being banned in June of 2020, had over 200 million Indian users and counting, with Snapchat now looking to be one of the viable candidates to take up the mantle. Its TikTok-like ‘Spotlight’ option is also gaining traction, which could help see its audience in the region continue rising.
Snapchat also reports that the number of Spotlight viewers that went on to subscribe to a creator more than doubled since the previous quarter, marking a positive for the feature that serves as a key tool for promoting Snap’s AR functionality. Over 65% of Spotlight submissions use at least one of Snap’s AR Lenses or creative tools.
On the side of revenue, Snap brought in $1.3 billion in terms of Q4 revenue, a 42% YoY increase. Even with its revenue per user numbers in the ‘Rest of the World’ category jumping only a few amounts over its previous Q4 values, it still means that the platform has increased revenue intake, in line with user growth.
These all make for strong signals for Snap’s ongoing business evolution, as well as its opportunities in other regions, suggesting a continuous rise in advertiser interest. It’s a good summary that captures Snap’s evolving business focus, which it was once even criticized for due to an apparent lack of focus and dismissing potential growth in certain markets due to perceived lack of value. Since its initial days, Snapchat has matured significantly, with its current systems and structure is more aligned with a sustainable business model, offering ample opportunities to increase both user engagement and advertising reach.
On this note, its Discover content has been a rather key element, with short-form, TV-like programming better aligning with the viewing habits of younger audiences. Snap CEO Evan Spiegel explains:
“In Q4 2021, 25 different Discover partners each reached over 50 million unique Snapchatters globally. This captures a wide range of genres, from Universal Music’s Rebel Labs, to social publisher Jungle Creations’ lifestyle content, Team Whistle’s sports content, and Creator-driven Shows from Jellysmack. We are also introducing more locally relevant partners worldwide. We added more than 160 new channels in the quarter from Discover partners outside of the U.S. and onboarded new partners including Seven. One Entertainment Group in Germany and Canal+ in France.”
The Wrap
To cut the story short, Snapchat continues to progress, experiencing growth at levels it previously dismissed as ‘impossible’. The transitory journey of Snap from budding, close-minded yelp to the now-flourishing and flexible key connection platform that it is also highlights the evolution of digital connection, as well as major shifts that result from either trends or systemic behavioral change.
From here on out, it’s safe to expect more from Snap since it continues to show steady growth in key areas, meaning that it’s able to effectively allot focus on the right elements for its community. If Snap becomes a key connection tool in new and emerging markets, then it’ll simply keep on growing, facilitating even more forms of connection and opportunity.
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