TikTok sales increased 545% in Europe in 2020, but losses are increasing

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London — TikTok’s sales in Europe increased 545% to $ 170.8 million last year as advertisers increased their spending on the platform, according to a submission to the UK corporate registry on Monday. ..

The filing submitted to Companies House shows how TikTok has invested heavily to expand its business in Europe. Facebook, Instagram, YouTube, When snap..

Losses to Chinese-owned companies surged from $ 118.7 million in 2019 to $ 644.3 million in 2020.

Staff is one of the biggest costs of TikTok. Last year, the company’s workforce in Europe exceeded 1,000, increasing from 208 in 2019 to 1,294 in 2020. When asked how many staff CNBC has in other parts of the world, Tik Tok didn’t immediately answer.But in July the company said it wanted to Increase US workforce from 1,400 to 10,000..

In addition to staff, TikTok spent $ 344.9 million on sales and marketing expenses in 2020, up from $ 110.3 million in 2019, according to filings.

TikTok’s popularity has skyrocketed in the last three years Announced last week The platform has 1 billion monthly active users, an increase of 45% in July 2020.

TikTok said it has about 55 million global users by January 2018. That number has increased to 217 million by December 2018 and 507 million by December 2019. The company reported nearly 700 million monthly active users last summer.

However, TikTok recognizes that growth does not always last forever. The company, owned by ByteDance in China, states in the “Business Risks” section that it “is facing competition from Internet companies that operate content-based social platforms.” Indeed, Facebook and Snap are one of TikTok’s biggest competitors, all fighting for advertising.

The size of these social media companies has increased the level of regulatory oversight in recent years. Under the “Compliance Risk” section of the filing, TikTok said, “It is subject to various new and existing laws in a regulatory environment that is subject to change.”

The company faces many setbacks, including the possibility of a US ban after the former Trump administration saw data storage and security as a national security risk.

TikTok was sold to an American company if it wanted to continue its business widely, and Oracle was later nominated as a “trusted technology provider.”

However, President Joe Biden’s promotion to the White House allowed the company to continue operating normally. In February, The Wall Street Journal reported that Oracle’s transactions were “indefinitely shelved.” This summer, Biden also signed an executive order to set government standards for assessing the risk of apps connected to foreign enemies.

Cultural concerns

The dramatic increase in TikTok’s European workforce Some people refuse to work Video sharing companies are afraid that there may be a so-called 996 culture.

The 996 culture is practiced by some Chinese companies. The name comes from the employee’s requirement to work six days a week from 9 am to 9 pm and works 72 hours a week. On the other hand, the US and UK standards are about 40 hours a week, which many workers have overcome. It is illegal to work more than 48 hours a week on average in the UK. TikTok has denied the existence of such a culture.

“Like the fast-growing start-ups, employees are working hard at TikTok, and some jobs may have urgent overtime, but there is no” 996 “policy at all.” A spokeswoman told CNBC in May.

In addition, “Teams that need to work 24 hours a day, such as user support and safety, will stagger on-call times to arrange continuous service to their customers. As employees continue to grow in size, they work. Overtime requests are an exception. More than usual. “

— Additional report by Jessica Bursztynsky on CNBC.

TikTok sales increased 545% in Europe in 2020, but losses are increasing

Source link TikTok sales increased 545% in Europe in 2020, but losses are increasing

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