Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Donate to earthquake relief efforts in Turkey and Syria Donate
TikTok Parent ByteDance Lost Over $7 Billion in 2021 Despite 80% Revenue Growth - WSJ
© Reuters TikTok Parent ByteDance Lost Over $7 Billion in 2021 Despite 80% Revenue Growth - WSJ
By Senad Karaahmetovic
ByteDance, the parent company of the blockbuster social media app TikTok, reportedly witnessed an operating loss of $7.15 billion in 2021, up from $2.14 billion in 2020.
Revenue soared almost 80% to $61.7 billion in 2021, but costs soared as well as the social media company invested heavily to sustain its skyrocketing growth, the Wall Street Journal reports.
According to the internal report shared with employees and seen by the WSJ, TikTok’s parent company reported a cost of sales of $27.4 billion for last year, up 79% from 2020. Financial reports showed that the entertainment business spent $14.6 billion on R&D and $19.2 billion on selling and marketing activities.
However, ByteDance also made a profit in Q1 of this year with revenue exceeding $18 billion, up nearly 54% YoY.
At the end of Q1 2022, ByteDance reported it had $74 billion in total assets and $42.6 billion in cash and cash equivalents. The company has 130,000 employees globally, the WSJ also reported citing people familiar with the matter.
“No startup could afford to invest billions and billions and billions of dollars in user acquisition like that around the world,” Snap (NYSE:SNAP) CEO Evan Spiegel said last month.
ByteDance raised funding in late 2020 at a $180 billion valuation. The company’s valuation was then estimated at $300 billion this year when it offered to buy back its shares from investors. The WSJ reported earlier that ByteDance traded closer to $400 billion on the secondary market.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.