On June 17th ByteDance’s revenue soared to $5.6 billion ($40 billion) in the first quarter of 2020, up more than 130 percent from a year earlier, according tomedia reports. Byte Dance expects to target revenues of about 200 billion yuan in 2020, and the company’s ultimate goal is to bring revenue to half of that of its rival Tencent, according to people familiar with the matter. Tencent previously reported revenueof nearly 377 billion yuan in 2019. Byte Dance declined to comment.
ByteDance’s surge in revenue suggests that the eight-year-old company is fast-tracking digital advertising revenue. People familiar with the matter said most of the company’s revenue came from ads on its Chinese apps, including today’s headlines and shake-ups, rather than from TikTok.
Before ByteDance, China’s advertising market was dominated by Alibaba, Baidu and Tencent. China’s advertising market reached Rmb121.2bn in the first quarter of this year, up 1.9 per cent from a year earlier, according to iResearch, a consultancy.
Since the outbreak of New Crown, byteDance’s application usage has increased significantly as a result of quarantine measures. In January, six of the 10 most popular apps in China’s iOS app store belonged to ByteDance, according to App Annie, an app tracker.
ByteDance’s recent valuation in the secondary private equity market was between $95bn and $140bn, according to two people familiar with the matter. The company is trying to promote TikTok and last month named Kevin Mayer, a former Disney streaming executive, as its new chief executive.