Sounds on Snapchat
Snapchat’s rival feature to TikTok, Sounds on Snapchat, recently launched on iOS with a major collection of deals from record labels to provide music and their already robust library of filters to create an experience both unique to their own platform but extremely comparable to their competitor. In order to secure what apparently will add up to millions of songs, Snapchat inked long term, multi-year deals with Warner Music Group, Merlin, National Music Publishers Association, Universal Music Publishing Group, Kobalt, and BMG Music Publishing. The features of Sounds on Snapchat basically boil down to the user being able to add music or custom created sounds to their personal snaps or their story. If someone else is interested in the song being played, a portion of the songs will offer them a link to play the full version of the song on Spotify, Apple Music, or Soundcloud.
A user can also search for sounds based exclusively on the song being played as well. This, of course, is paired with the millions of different filters and augmented reality features the app is already capable of providing. While it is still unclear if this investment in music-based features will pay off for Snapchat, what has become clear is that the company is already on a far better track than investors and analysts had initially believed. Less than a week after the launch of Sounds on Snapchat, the company released its quarterly reports, blowing away expectations nearly across the board.
Snapchat’s Impressive Quarterly Report
Snapchat’s quarterly report gave a full impression of the growth of the app and the company has continued to achieve largely under the radar. Of the major points of growth, the two most impressive aspects were easily users and revenue. Regarding users, Snapchat announced that they had reached an unbelievable 249 million daily active users. This translates to an 18% uptick in comparison to the same quarter in 2019. These added users sent an average of 25% more snaps per day in comparison to the daily numbers a year ago. Another huge point for Snapchat was the 50% increase of viewership time on the many different shows offered on the platform, a major point of revenue for the company.
On the topic of revenue, Snapchat made major gains. In fact, the company generated $679 million, which marks the most ever made by Snapchat, blowing the estimates made by outside analysts. The $679 million is a 52% increase year over year in revenues for the company, proving ultimately the effective ad integration that Snapchat has been working on for some time. These results have led to Snapchat’s stock (SNAP) being up currently nearly 35% bringing the price per share to the highest it has been since the company went public. In the meantime, Wall Street analysts have changed their target prices for Snapchat to significantly higher marks ranging anywhere from $40 per share up to $47 per share.
Numbers are up across the board for Snapchat. The massive spike in revenue and increases in daily users and their engagement level indicate a very positive direction for the company. What is even more promising is the potential success of Sounds on Snapchat. If the launch brings in more users to the company and makes a significant difference to its popularity, the numbers Snapchat could be posting in the future look even better than their most recent quarterly report.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.