TikTok better watch its back.
It’s been less than three months since Snapchat launched Spotlight, its short-form video platform where creators have the opportunity to get paid, and it already has more than 100 million monthly active users.
That figure was one of many bright spots in Snap Inc.’s fourth-quarter earnings report, posted Thursday after the bell. The company reported revenue of $911 million, up 62%, compared to a consensus estimate cited by CNBC of $857.4 million. Adjusted earnings per share were 9 cents, versus 7 cents expected.
The big story for Snap continues to be its steady user growth—daily active users grew 22% to 265 million—even in the face of growing competition from TikTok, which has further captivated Snap’s target Gen Z demographic in the months since the coronavirus pandemic. Much of that success can be attributed to its Discover platform, on which Snap says “over 90% of the U.S. Gen Z population watched Shows and publisher content in Q4 2020.”