The revenue for 2020 amassed by the Chinese owner of TikTok, ByteDance, more than doubled, said reports quoting sources with knowledge of the matter.
According to the reports, the senior management at the company told employees in a company-wide meeting that it had generated revenue of $34.3 billion in 2020 which marked a growth of 111 per cent year on year. There was also a 93 per cent growth in gross profit to $19 billion, said the reports quoting sources who attended the meeting.
By the end of 2020, there were a total of more than 1.9 billion monthly active users across all of its platforms, which includes the hugely popular short video app TikTok, the Chinese version Douyin, and news aggregation app Toutiao, ByteDance reportedly said.
The Wall Street Journal first reported the numbers.
The excitement around the privately held ByteDance and the reasons for the valuation of more than $100 billion given to the company were underscored in the very fast growth of the company.
Earlier this year, former Xiaomi executive Shou Zi Chew was hired by the company as its new chief financial officer which indicated that the company would could be preparing to go public.
Sources also said that the operating loss for ByteDance for 2020 was at $2.1 billion compared to an operating profit of $684 million the year before. The sources were not named in the reports. The cost of share-based compensation for shareholders was the primary reason for the annual loss in 2020.
With TikTok, the short video app gaining global popularity for dancing and lip syncing, this Chinese internet company has managed to find success internationally. A major component of the revenues of ByteDance is advertisements on its platforms. The company has not started to diversify its revenues sources to new areas such as gaming and is preparing to rival against some of the other tech giants of China such as Tencent.
However 2020 has been a tough year for the company.
The former United States Donald Trump and his administration announced ByteDance as a national security threat in August last year while also ordering the Chinese company to divest its TikTok business in the US. A deal to sell TiKTok has been shelved indefinitely, the Wall Street Journal reported this year.
A broader regulatory crackdown on the country’s technology sector has hit the company back in its home market.
China’s Cyberspace Administration of China had identified Douyin, the Chinese version of TiKTok, along with 104 other apps, of engaging in illegal collection of personal data. The regulator asked the companies to rectify the issues.
There will also be a crucial management change in the company this year with its co-founder Zhang Yiming, slated to step down from his role as CEO by the end of the year.
(Adapted from CNBC.com)