The numbers that scare Facebook: TikTok parent company revenue increased 111%, hit 1.9 billion users

CNBC reported that ByteDance – TikTok’s parent company saw revenue in 2020 double. Specifically, last year’s revenue reached 34.3 billion USD, up 111% compared to the previous year. Gross profit increased 93% to $18 billion.

ByteDance reached 1.9 billion monthly active users by the end of 2020, across its platforms including the short video app TikTok, the Chinese version of Douyin, and the Toutiao app.

This breakneck growth shows the strength of ByteDance – a privately held company valued at around $100 billion.

The company also recruited former Xiaomi executive Shou Zi Chew for the position of Chief Financial Officer (CFO) earlier this year, indicating that it is preparing for an IPO.

The Chinese company is currently finding international success with TikTok – a hugely popular short video app. Advertising is an important part of ByteDance’s revenue stream across all platforms, but it’s also starting to move into other areas like games and has expressed its ambition to take on giants like Tencent.

However, this time ByteDance is also facing some difficulties.

Zhang Yiming, co-founder of TikTok parent company ByteDance, has announced that he will step down as CEO. Zhang wrote in the statement that he made the decision after months of pondering whether there could be a greater impact on ByteDance’s long-term initiatives if he transferred the CEO position to someone else.

While ByteDance is not currently a target of the Chinese government, its dominance in the social media space and its advantage in making deals are both in sensitive areas that the Chinese government has not been able to control. Quoc is watching.

“There will be no more tough games in the US with Mr. Trump and the potential for a ban or forced sale of assets. However, pressure on technology stock prices and the Chinese government are part of what could put ByteDance in trouble. hard”.

Just last year, ByteDance – the parent company of TikTok, the world’s most valuable startup is still under pressure from many sides. The Trump administration wants the company to sell off its US assets. Meanwhile at home, they are under pressure as the Beijing government aggressively regulates technology startups. Not to mention that India has blacklisted some of the company’s social networking apps.

However, overcoming all those obstacles, ByteDance still thrived. Currently, the company’s founder, Zhang Yiming, 38, is one of the richest people in the world.

As of November 2019, the company has over 60,000 employees and serves over 150 markets. They have offices in 126 cities globally, including Shanghai, New York, London, Paris, Mubai, Singapore, Jakarta, Seoul, Tokyo…

Source: CNBC