TikTok Owner ByteDance's Reports 60% Rise In 2023 Profits Despite Global Economic Slowdown, US Scrutiny
Chinese tech major ByteDance has reportedly experienced a substantial profit growth in 2023, by about 60 per cent outpacing the financial performance of its online competitors Tencent Holdings and Alibaba Group, marking its resilience amidst the economic slowdown.
The company’s earnings before interest, tax, depreciation and amortization stood over USD 40 billion from about USD 25 billion in 2022, as per reports.
This is the first time the TikTok company has overtaken its fierce competitor Tencent both in revenue and profit. The unexpected growth is attributed to its short-video platforms and expansion into international e-commerce.
Meanwhile, there is no update regarding ByteDance's internal figures, but according to reports the social media giant has become one of the fastest-growing tech companies globally in 2023.
India had the largest user base for ByteDance's TikTok, exceeding 200 million users, until the government banned the platform on 29 June 2020, due to border disputes with China, along with several other Chinese applications.
Recently, the US government also introduced a new bill allowing the TikTok ban in the country. The bill would give the Commerce Department the ability to impose restrictions, including banning TikTok and other technologies that pose national security risks, as per reports.
TikTok criticised the measure, saying in a statement that, "The US ban on its service is a ban on the export of American culture and values of the billion-plus TikTok users worldwide."
Meanwhile, TikTok Shop has experienced a prosperous launch in international markets such as the US and Southeast Asia, leading to the discovery of additional revenue streams apart from digital marketing. TikTok aims to expand its US ecommerce business by ten times its current size within this year, capitalizing on its existing user base of 170 million in the country.
