ByteDance, the parent company of TikTok, achieved an operating profit of nearly US$6 billion (currently about 43.86 billion yuan) in the first quarter of 2023, which was almost the same as the previous year. double. While rapidly increasing revenue, ByteDance has also slashed marketing, administrative and research expenses.
The Wall Street Journal reports that investigations show ByteDance has largely turned around its business since 2021, when it suffered an operating loss of about $7 billion (currently about RMB 51.17 billion).
In addition, according to a financial report shared by Byte with employees, although its revenue continues to grow – up more than 38% in 2022 to reach $85.2 billion (currently about RMB 622.812 billion), the company’s revenue growth is about the same as one year ago. It has slowed down compared to before, when it grew by nearly 80%. Reports show the company generated operating profits of more than $20 billion (currently about RMB 146.2 billion) last year.
ByteDance also offered to buy back shares from current employees at $160 per share (currently about RMB 1,170), according to people familiar with the matter. ByteDance has 1.4 billion outstanding shares, which means it is valued at $223.5 billion (currently about RMB 1.63 trillion). That’s down nearly 26% from $300 billion a year ago, according to a previous Wall Street Journal report.
TikTok launched its e-commerce service in the United States in August. The company hopes TikTok e-commerce will bring in more revenue, people familiar with the matter said.
