ByteDance Ltd. witnessed a remarkable surge in profit in 2023, soaring by approximately 60%, surpassing the growth rates of online giants Tencent Holdings Ltd. and Alibaba Group Holding Ltd.
This robust performance underscores the resilience of the TikTok owner amidst prevailing economic challenges.
ByteDance’s earnings before interest, tax, depreciation, and amortization skyrocketed to over $40 billion from approximately $25 billion in 2022, according to Bloomberg.
Moreover, the company experienced a substantial increase in sales, soaring to nearly $120 billion from $80 billion the previous year.
These results mark a significant milestone for ByteDance, marking the first instance where it has surpassed archrival Tencent in both revenue and profit.
ByteDance capitalized on its popular short-video platforms to venture into international e-commerce, thereby sustaining its global popularity. Although ByteDance’s internal figures are yet to be independently audited, they suggest that the company emerged as one of the fastest-growing tech giants globally in 2023.
In the domestic market, ByteDance’s platform Douyin is evolving into a comprehensive all-in-one platform similar to Tencent’s WeChat.
With added features encroaching on Alibaba’s e-commerce domain and competing with Meituan for food delivery orders, Douyin is positioning itself as a formidable contender in various sectors.
Internationally, the successful rollout of TikTok Shop in markets like the US and Southeast Asia has unlocked new revenue streams beyond digital marketing. TikTok aims to expand its US e-commerce business tenfold this year, leveraging its user base of 170 million in the country.
However, despite its global success, TikTok faces uncertainties in its most lucrative market, the US. The US House of Representatives passed a bill in March to ban TikTok unless ByteDance divests its assets.
The outcome remains uncertain pending Senate deliberations and potential responses from both the Biden administration and Beijing.
Similar to its Chinese counterparts, ByteDance has embarked on a strategy to unwind risky ventures in recent months. It has streamlined operations by cutting jobs in gaming development and enterprise software units that failed to meet expectations. Instead, the company is focusing on advancements in generative AI, developing its chatbots and large language models.
Despite anticipation for its stock market debut, ByteDance faces heightened scrutiny in the US, delaying any potential IPO plans. In December, the company offered to repurchase up to $5 billion in shares from investors at a valuation of $268 billion, signaling a cautious approach amid regulatory challenges.
