Home Business China’s ByteDance, proprietor of TikTok, noticed income surge 111% in 2020
Business - June 17, 2021

China’s ByteDance, proprietor of TikTok, noticed income surge 111% in 2020

A billboard promoting Chinese language video app TikTok at Wangfujing avenue on August 20, 2020, in Beijing.

VCG | Visible China Group | Getty Photographs

GUANGZHOU, China — ByteDance, the proprietor of TikTok, noticed its income for 2020 greater than double, an individual conversant in the matter instructed CNBC.

Income for final 12 months totaled $34.3 billion, up 111% year-on-year, senior administration on the firm instructed staff in a company-wide assembly. Gross revenue rose 93% to $19 billion, the one who attended the assembly stated.

ByteDance had 1.9 billion month-to-month energetic customers by the top of 2020 throughout all of its platforms — which embody its extensively common brief video app TikTok, the Chinese language model Douyin, and information aggregation app Toutiao, amongst others.

The Wall Avenue Journal first reported the numbers.

The speedy development underscores the thrill round ByteDance, a personal firm, and why its valuation has reportedly been pegged north of $100 billion.

The corporate additionally employed former Xiaomi govt Shou Zi Chew to be its new chief monetary officer earlier this 12 months, signaling it may very well be gearing up for an preliminary public providing.

ByteDance’s 2020 working loss was $2.1 billion versus a $684 million working revenue the 12 months earlier than, stated the particular person, who wished to stay nameless as they weren’t licensed to talk publicly. The loss was primarily attributable to the price of share-based compensation for shareholders, the supply stated.

The Chinese language web firm has managed to search out success internationally with TikTok, the brief video app common for dancing and lip syncing. Promoting is a key a part of ByteDance’s income on its platforms, nevertheless it has began pushing into new areas similar to gaming and is pitting itself in opposition to a few of China’s different tech giants like Tencent.

It has been a rocky 12 months for the corporate, nevertheless.

ByteDance was dubbed a nationwide safety risk by former President Donald Trump‘s administration final August and ordered to divest its TikTok enterprise within the U.S. The Wall Avenue Journal reported this 12 months {that a} deal to promote TiKTok has been shelved indefinitely.

In China, ByteDance has been caught up on a broader regulatory crackdown on the nation’s know-how sector. Douyin, the Chinese language model of TiKTok, together with 104 different apps, had been known as out by China’s Our on-line world Administration of China for the unlawful assortment of non-public information and requested to rectify the problems.

The corporate can even endure a key administration change this 12 months. Zhang Yiming, the co-founder of ByteDance, will step down from his position as CEO by the top of the 12 months and transfer right into a key technique position. One other co-founder, Liang Rubo, who’s at the moment head of human assets, will take over as CEO.

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