CapCut's Revenue Growth is Outpacing Every Other Competitor!
This is a single insight from This Week in Apps - May's Revenue Rejuvenation. Check out the full article for more insights.
Lights, camera, CapCut!
The video editor from TikTok that's now monetizing is doing so in a way that should put all of its competitors on notice!
So far this year, CapCut's net revenue has grown 243%. But what's more interesting is that its revenue is growing double-digit % while the competition, incumbents that have seen success for years, are barely growing. Some are even declining.
CapCut, which was free up until late last year, is now selling a pro subscription that unlocks additional effects, filters, and cloud space.
On the App Store, CapCut's revenue has been growing at a decent rate this year. It kicked off 2023 by doubling, and dropped to a more realistic rate after, where it's averaging revenue growth of 36% month over month.
According to our App Intelligence, that growth gave CapCut $2.8M of net revenue from the App Store in May.
Splice, Picsart, and Facetune are close competitors to CapCut and all bring in more revenue, in absolute terms, right now. But unlike CapCut, all are also growing at a much slower rate.
The leader of the pack both in terms of absolute revenue and growth rate, Facetune, is growing at half the speed, and that's on a good day. Facetune's revenue from the App Store grew 17% in May. It ended May with $10M of net revenue from the App Store. And that's net, meaning what Lightricks gets to keep after giving Apple its cut.
Picsart and Splice grew 3% and 8%, respectively, in May. Those rates dropped significantly when compared to earlier in the year, where the numbers were 23% for Splice and 17% for Picsart.
CapCut is certainly eating someone's lunch.
If you've tried the app you'd know that the in-app purchase isn't heavily promoted at all. Like TikTok isn't even trying. If that's the kind of growth it's seeing with the in-app purchase hidden, imagine what would happen if they tried just a little harder.
It's not a question of if but rather when...
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All figures included in this report are estimated. Unless specified otherwise, estimated revenue is always net, meaning it's the amount the developer earned after Apple and Google took their fee.