Bytedance sees exponential growth in its international business as domestic numbers slow.
Recent figures indicate a rapid surge in Bytedance's international operations, outpacing its domestic business growth rates.
Sources familiar with Bytedance's financial performance told The Information on Thursday that the company's total revenue last year hit $85 billion, a year-over-year rise of 38%. Of this, its revenue from China stood at $69 billion, growing by 25% from the previous year. This is a slowdown compared to the impressive growth rates of 68%, 105%, and 150% in 2021, 2020, and 2019, respectively.
The primary driver of Bytedance's international revenue is TikTok, but the company's portfolio also includes video games and enterprise software among other global operations. In 2022, its international earnings spiked to $16 billion, up from $6.5 billion in 2021 and a mere $1.2 billion in 2020.
By the end of 2022, Bytedance's daily active users outside China had reached 840 million, marking a 40% increase from the previous year. In contrast, its daily active users in China for 2022 were slightly higher at 850 million, up 13% from the prior year.
Insiders told The Information that last year, Bytedance's operating profit surged 80% to $18 billion, while net profit rose by 67% to approximately $15 billion. With an operating margin of 21%, Bytedance is closing in on Meta's 25% and Alphabet's 26%.
One of Bytedance's significant revenue streams is its e-commerce on Douyin. According to a report by The Information in January, Chinese consumers' expenditure on Douyin for purchasing goods last year was RMB 1.41 trillion (equivalent to $195 billion), a rise of 76% from the previous year. Bytedance typically earns its income from e-commerce transactions by taking a commission, usually around 3% to 5% of the sales.
The Information highlighted that Bytedance remains among the world's most valuable private tech firms, with a recent secondary market valuation surpassing $200 billion. As a point of reference, its last equity financing round at the end of 2020 valued the company at $180 billion.
