ByteDance, TikTok Parent Company, Generated $5.6 Billion Revenue During Q1 2020

It has been reported that the China-based startup behind short-video app TikTok and other popular social apps saw $5.6 billion during the first quarter of this year. Reuters reported that the first-quarter figure of ByteDance displays a 130% year-over-year increase in terms of revenue.

According to Bloomberg, ByteDance was most recently valued at $100 billion. This increased the company’s lead as the most valuable private started across the globe. The company was able to buck slowdowns across industries in digital advertising during the pandemic. As the coronavirus pandemic has forced millions of people to stay indoors, the use of social networking apps has been increased. The usage of applications owned by ByteDance has also surged during the coronavirus lockdowns.

ByteDance-owned applications including hits outside of the United States such as Vigo Video, Douyin, and Jinri Toutiao have also benefited from the worldwide uptick in the usage of social networking platforms. Application performance tracker, App Annie has reported that 6 out of the ten most popular applications on the Chinese iOS App Store during Jan of this year were owned by the China-based startup, ByteDance.

During the first of this year, TikTok was downloaded 315 million times which indicates that the app has become more popular during the pandemic. No other application has ever had 315 million downloads in a single quarter which means that the app has set the record for the most downloads any application has ever had in one quarter.

Recently, TikTok crossed two billion all-time worldwide installs across Android and iOS devices. Reuters has reported that ByteDance has set a revenue goal of around 200 billion yuan (approximately $28.2 billion) for this year. The company earned $17 billion in terms of revenue during 2019, and now the company aims to earn a revenue of $28.2 billion which is $11.2 billion more than the revenue company earned in 2019. ByteDance earned $3 billion in net profit last year.

ByteDance earned at least $7 billion in revenue in only the first six months of last year. This indicates that the company could be on the trajectory for robust growth throughout this year.

Outlets previously reported that the company is planning to go public on the Hong Kong stock exchange. If ByteDance is still considering this plan, the positive outlook for revenue may be beneficial for the company. In May 2020, an analyst stated that ByteDance may IPO (Initial Public Offering) at valuation from $150 billion to $180 billion, according to Bloomberg.

Photo: Getty

Read next: TikTok Is Diversifying Its Content Slate With Focus On DIY Tutorials And Live Videos
Previous Post Next Post