TikTok owner ByteDance’s revenue surged 111% in 2020, records 1.9 billion users

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TikTok owner ByteDance's revenue surged 111% in 2020, records 1.9 billion users #Baaghi

GUANGZHOU, China June 17, 2021: ByteDance, the owner of TikTok, saw its revenue for 2020 more than double, a person familiar with the matter told CNBC.

Revenue for last year totaled $34.3 billion, up 111% year-on-year, senior management at the company told employees in a company-wide meeting. Gross profit rose 93% to $19 billion, the person who attended the meeting said.

Byte Dance has 1.9 billion monthly active users across all its platforms by the end of 2020 including its widely popular short video app TikTok, Chinese version Douyin, and news aggregation app Toutiao. The Wall Street Journal reported the numbers. The rapid growth reflects the excitement surrounding Byte Dance, a private company, and why it is reportedly valued at 100 billion.

The company also hired former Xiaomi executive Shou Zi Chew to be its new chief financial officer earlier this year, indicating that it could prepare an initial public offering. The man said Byte Dance’s 2020 operating loss was $2.1 billion compared to an operating profit of $684 million a year ago, said an insider who wished to remain anonymous because he did not have the authority to speak publicly. Sources said that the loss was mainly due to the cost of compensation based on shareholders’ shares.

The Chinese Internet company has achieved international success with the short video app TikTok, which is known for its dance and lip sync. Advertising is a key part of Byte Dances’ revenue on its platforms, but it has begun to step into new areas such as gaming and is pitting itself against some of China’s other tech giants, such as Tencent. However, it has been a rocky year for the company. Byte Dance was declared a threat to national security by former President Donald Trump’s administration last August and was ordered to end the tiktok business in the United States.

In China, ByteDance has been caught up on a broader regulatory crackdown on the country’s technology sector. Douyin, the Chinese version of TiKTok, along with 104 other apps, were called out by China’s Cyberspace Administration of China for the illegal collection of personal data and asked to rectify the issues.

The company will also make key changes to its management this year. Byte Dance co-founder Zhang Yimang will step down as CEO by the end of the year and move into a key strategic role. Another co-founder, Liang Robo, who is currently head of human resources, will take over as CEO.

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