ByteDance's earnings before interest, tax, depreciation and amortization (Ebitda) in 2022 increased 79% to nearly $25 billion from $14 billion in 2021, the Financial Times reported.
ByteDance's revenue is expected to reach nearly $85 billion in 2022, up more than 30% from a year earlier, as brands ramp up advertising on its two popular apps, TikTok and Douyin (TikTok's Chinese version).
The record figure helps ByteDance surpass two other Chinese giants, Tencent and Alibaba, with Ebitda profits of $23.9 billion and $22.5 billion, respectively, in 2022.
ByteDance's impressive growth comes as TikTok faces growing security concerns from governments and regulators around the world . TikTok has been banned in India, the European Union, Canada, Australia, and several other countries.
TikTok CEO Shou Zi Chew testifies before the US House Energy and Commerce Committee on March 23. Photo: Bloomberg
In the US, these concerns have grown since TikTok admitted in December 2022 that its employees in the US and China had collected user data, including that of two reporters. The US government has therefore considered banning TikTok and asking ByteDance to divest from the company.
In a hearing before the US Congress in late March, TikTok CEO Shou Zi Chew asserted that the app is “not controlled by any government.” Beijing also said it would firmly oppose any move to separate TikTok’s US branch from its Chinese owners.
However, a ByteDance investor in the US said that the TikTok ban will not affect ByteDance's finances, because TikTok does not account for a large proportion of ByteDance's total revenue as people mistakenly believe.
ByteDance's international business , which includes TikTok, generated about $15 billion in revenue in 2022, more than double the previous year. Its China revenue was about $70 billion .
Nguyen Tuyet (According to Financial Times, Money Control)
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