Tech

TikTok owner ByteDance’s annual revenue jumps to $ 34.3 billion

Singapore — ByteDance Ltd., owner of the popular short video app TikTok, told employees that last year’s revenue more than doubled to $ 34.3 billion, making Chinese tech giant the world’s most popular start-up. He emphasized why he is one of the companies.

Privately held on Thursday shared the highlights of its 2020 financial performance with its employees. According to an excerpt from a company memo read by The Wall Street Journal, ByteDance’s total revenue increased 111% from a year ago and gross profit increased 93% to $ 19 billion.

According to the memo, as of December 2020, ByteDance had about 1.9 billion monthly active users on all platforms. The company also operates viral apps such as Douyin in China, which is equivalent to TikTok, and a news aggregation app called Jinri Toutiao.

The Beijing-based company told staff that it suffered an operating loss of $ 2.1 billion from January to December last year. Part of the loss was due to increased costs incurred from equity-based compensation to workers, according to people familiar with the matter. In 2019, ByteDance reported operating profit of $ 648 million.

The total net loss in 2020 was $ 45 billion. This was primarily due to accounting adjustments made by the company to raise the fair value of convertible bond redeemable preferred stock. Externally funded start-ups often have to bear these non-cash costs as their valuation increases when preparing results in line with International Financial Reporting Standards.

ByteDance started in 2012 Chinese entrepreneur Zhang YimingIs KKR & Co. Raised billions of dollars from global investors such as Sequoia Capital and General Atlantic. After a funding round involving Fidelity Investments and some of its existing shareholders, the company was worth $ 180 billion in late 2020.

The video sharing app TikTok has become comparable to some of the world’s most popular social media platforms in just a few years. The WSJ considers how Chinese startup ByteDance brought TikTok to the masses and why it attracted regulatory oversight. Video / Illustration: Jaden Urbi / WSJ. (September 15th first edition)

ByteDance is considering listing in Hong Kong or New York, according to someone familiar with the matter. The company has no plans for an initial public offering timeline.

Earlier this year, Kuaishou Technology, a short video app operator, one of ByteDance’s small domestic rivals, Listed on Hong Kong rear Raised $ 5.4 billion.. Kuaishou has recently had a market capitalization of approximately $ 103 billion, and the company reported that it would generate approximately $ 9.2 billion in revenue in 2020.

In China, TikTok is widely regarded as China’s most successful mobile internet export. The very popular short video app has been downloaded over 240 million times in the United States, and both teens and adults post video clips of lip-synching, dancing and even financial advice.

ByteDance revenue from TikTok comes primarily from advertising. The company also extends beyond social media to areas such as games and e-commerce.

ByteDance doesn’t categorize 1.9 billion monthly active users by app, but it’s comparable in size

Alphabet Of a corporation

YouTube reiterated in April that more than 2 billion users log in to the site to watch videos. At the end of 2019, ByteDance had about 1.5 billion monthly active users.

Details of ByteDance

Related articles selected by WSJ editors

Thursday’s numbers show that ByteDance is advertising the world as advertisers increasingly switch from traditional platforms to new internet formats to target consumers who are spending more time online since the outbreak of the coronavirus. It also reflects the entry into the market.

In China, digital advertising revenue will increase by more than 20% to reach 300 billion yuan in the first half of 2020, equivalent to $ 46.9 billion. It has the most popular short video, e-commerce and social media platforms among Chinese marketers. Latest data from industry researcher R3.

Alibaba Group Holding Co., Ltd.

According to R3, ByteDance collected the most digital advertising spending during this period.

Many of ByteDance’s international peers

Facebook Co., Ltd.

And I also witnessed the parent alphabet of Google and YouTube Advertising boom after slowing spending In the early months of the pandemic.

Last year, ByteDance was caught by a former US president on the cross of US-China relations.

Donald TrumpThe administration has selected TikTok as a national security threat and sought to ban the app.President Biden this month

Revoke the banInstead, it issues an executive order mandating an extensive review of apps controlled by foreign enemies.

At home, Chinese authorities Suppress the perceived excess Of its strong technical department. ByteDance was called by authorities this year for violations such as improper data use and problematic content.

Last month, Mr. Zhang Resigned from his role As Chief Executive Officer as government oversight of the sector increases. Following a change in the company’s management team, ByteDance has begun buying back shares for its employees, according to people familiar with the matter.

In June, two ByteDance apps were included in the list of 129 apps nominated by China’s Cyberspace Administration for excessive collection of personal information from users. Authorities have instructed all apps to correct the situation. This move was done in a similar order at Douyin last month.

Write to Lizarin Liza.Lin@wsj.com

Copyright © 2020 DowJones & Company, Inc. all rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

TikTok owner ByteDance’s annual revenue jumps to $ 34.3 billion

Source link TikTok owner ByteDance’s annual revenue jumps to $ 34.3 billion

Back to top button