The owner of the famous social network TikTok has increased its turnover by 70% in one year, reaching around 58 billion dollars in 2021. Many companies would dream of such growth.
But for ByteDance, this is a poor performance compared to 2020, when the group had doubled its revenue.
According to
Reuters
, this data was disclosed to a small group of employees during an internal meeting held this week.
This slowdown could be explained by the stricter rules enacted by China to regulate the activity of its technological giants.
In September, ByteDance reduced the maximum online time for users under 14 of Douyin, the Chinese equivalent of TikTok, to 40 minutes a day.
Laws, which will come into force this year, will also affect ByteDance's business model.
In particular, they will restrict the use of content recommendation algorithms.
Read alsoChinese teenagers are only allowed 40 minutes of TikTok per day
A major player in Chinese advertising
Despite this, ByteDance retained its second place in China's online advertising market in 2021, with 22% market share according to a report by Zhongguancun's Interactive Marketing Lab. The group is preceded by the e-commerce giant Alibaba and followed by the company Tencent, which specializes in internet and mobile services. In 2021, overall Chinese advertising revenue growth fell to +9.3% in 2021, from +13.8% a year earlier.
Besides TikTok, ByteDance owns its Chinese counterpart Douyin, news site Jinri Toutiao and video streaming platform Xigua.
In 2021, users spent around $2.3 billion on TikTok and the iOS version of Douyin, driving a 77% year-over-year jump, according to analytics firm SensorTower.
The valuation of the group is equivalent to approximately 300 billion dollars.
In November, the company reorganized into six business units, ushering in the biggest organizational change since its founder, Zhang Yiming, announced last May that he would step down as CEO.
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