TikToks unprofitability didnt stop ByteDance from posting record breaking profits in

TikTok’s unprofitability didn’t stop ByteDance from posting record-breaking profits in 2022

Chinese company ByteDance made $25 billion in profit in 2022. That’s 79% more than the $14 billion it raised a year earlier. The TikTok developer has managed to make record profits despite the problems of its short video service, which has long worried authorities in different countries over possible security issues.

    Image source: Eyestetix Studio / unsplash.com

Image source: Eyestetix Studio / unsplash.com

According to the report, ByteDance generated $85 billion in revenue last year, up more than 30% year-on-year. This growth is being driven by advertisers spending more on campaigns on TikTok and the Chinese version of Douyin. This success saw ByteDance overtake fellow Chinese IT giants Tencent and Alibaba, whose underlying revenues for the period were $23.9 billion and $22.5 billion, respectively.

ByteDance’s explosive growth comes as a number of governments consider banning TikTok, citing national security concerns. Although the company made about 80% of its profits in China last year and TikTok was unprofitable, the video service is one of its long-term revenue streams. One of ByteDance’s US investors believes that the TikTok ban will not have a material impact on the company’s financial performance.

    Image source: Financial Times

Image source: Financial Times

According to the source, ByteDance’s international business, which includes TikTok, generated about $15 billion in revenue in 2022, about double the year-ago figure. At the same time, sales in the home market rose to around 70 billion US dollars. ByteDance itself does not disclose any data on revenue or profitability. Official representatives of the company refrain from commenting on this issue.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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