According to a memo released to its staff members, ByteDance reported a 111% increase in revenue in 2020
The owner of the phenomenon app – TikTok – saw its revenue jump to $34.3 billion, underscoring its continuous global popularity. As of December 2020, ByteDance had around 1.9 billion monthly active e users across all of its platforms. At the same time, the company saw its annual gross profit rise 93% to 19 billion.
ByteDance’s results came at a time when multiple Chinese companies are under scrutiny across the world. Last year, Donald Trump signed an executive order through which apps such as TikTok and WeChat have been banned. That order has been revoked by the incumbent president Joe Biden. However, according to Reuters, the latter signed an executive order that will force some Chinese apps to take stricter measure to protect user data if they want to continue their activity in the US.
Moreover, in April, Chinese regulators called on 13 online platforms, including ByteDance, to embrace tighter regulations in their financial divisions. According to the authorities, the aim is to prevent monopolistic behavior and the “disorderly expansion of capital.”
Despite the regulatory incidents, ByteDance goes through a period of management change. Liang Rubo, the current head of human resources, will take over as the company’s CEO by the end of the year.
Sources: bbc.com, ft.com
This information is prepared for general circulation. It does not have regard to the specific investment objectives, financial situation or the particular needs of any recipient.
You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.
This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent.
Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of sc.capex.com