Byte Dance, the parent company of TikTok, reported revenues of more than $17bn and net profits of more than $3bn last year. ByteDance has become the world’s most valuable start-up and is growing at a rapid pace, according to data.
ByteDance’s revenue of $17 billion last year was more than double its total revenue of about $7.4 billion in 2018.
Currently, byteDance’s range of apps attracts about 1.5 billion active users a month, including the TikTok short video platform, sound and news service today’s headlines. This month, Byte Dance also poached Kevin Mayer, a streaming boss at Walt Disney, as chief executive of TikTok.
ByteDance, led by Yiming Zhang, is emerging as a strong competitor to US internet giants Facebook and Alphabet, Bloomberg reported earlier. Facebook’s Instagram generated about $20 billion in advertising revenue in 2019. Google’s video division claims YouTube’s advertising sales last year were $15.1 billion.
Representatives for ByteDance did not respond to requests for comment.
ByteDance is strengthening its business in emerging areas such as e-commerce and gaming. ByteDance has embarked on a hiring wave this year, with 40,000 new jobs expected to be created by 2020. ByteDance wants to match e-commerce giant Alibaba Group Holding in terms of employee numbers. The big picture is that the world’s major technology companies are laying off workers.
ByteDance had very preliminary discussions last year about an initial public offering, according to people familiar with the matter. But given ByteDance’s financial performance, the company is in no hurry to go public. ByteDance currently has more than $6 billion in cash on hand, people familiar with the matter said.
ByteDance, owned by SoftBank Group, General Atlantic and Sequoia Capital, has become the world’s most valuable start-up, according to CB Insights, a research firm. Bloomberg News previously reported that some recent private-equity deals have valued the Chinese company in the secondary market at between $105 billion and $110 billion. ByteDance’s deal is also worth $140bn, making it one of the most valued private companies in history, a person familiar with the matter said.