ByteDance: TikTok Owner’s Revenue Grows 111% In 2020

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ByteDance: The Wall Street Journal published, this Thursday (17), impressive information about the revenue of the Chinese startup ByteDance, the owner of TikTok, based on an internal memo obtained by the American periodical. Last year, the company’s revenue more than doubled, totaling US$ 34.3 billion (R$ 174 billion), an increase of 111% in the year.

In the document, ByteDance senior management informs employees that gross profit grew 93%, reaching US$19 billion (R$96 billion). At the end of last year, the company had on its platforms a “population” of 1.9 billion people, which represents the sum of active users of TikTok, its Chinese version Douyin and the Toutiao news app.

The dizzying growth explains the great investor interest in ByteDance, which remains one of the most valuable “unicorns” in the world. With this, the company, which signaled a possible initial public offering (IPO) on the New York Stock Exchange, already has an estimated valuation around US$ 100 billion (R$ 503 billion).

Adjustments for entering the international market

Although the numbers are impressive, ByteDance also revealed to its employees that last year it suffered an operating loss of US$2.1 billion (R$11 billion), an amount explained by a Wall Street Journal informant as expenses incurred with compensation. based on actions for workers. In 2019, the operating result had been a profit of US$684 million (R$3.5 billion).

As a result, the company posted a net loss in 2020 of US$45 billion (US$227 billion), most of which came from an adjustment in the price of its convertible preferred shares. These non-monetary expenses are mandatory for startups that raise funds abroad and need to adapt their results to the International Financial Reporting Standards (IFRS).

In this sense, the hiring of former Xiaomi Shou Zi Chew executive for the role of new CFO, earlier this year, signals that ByteDance is consolidating its transition to the long-awaited IPO.

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