- By Henry Faulkner Brittany
- June 27, 2022
TikTok Owner Bytedance, the Chinese company parent of short video app Titok, saw its revenue for 2020 more than double.
The company released an internal memo to the staff which showed that Bytedance revenue was $34.2bn last year, surged 111% in 2020, senior management at company disclose to the employees. The annual gross profit of Bytedance rosed 93% to $19 bn, said the person who attended the meeting.
In addition to this, the memo also showed that by the end of 2020 Bytedance had 1.2 bn active monthly users across all of its platforms including its universally popular short video app Tiktok, the Chinese version Douyin, and news aggregation app Toutiao, among others.
The rapid growth of the short video app TikTok underscores the excitement around Bytedance and scrutinized the Bytedance by governments across the world including the US and China.
Earlier this month, President Joe Biden signed some executive orders that would force some Chinese apps to consider tougher measures to protect user data if they want to see themselves in the US market for long, reported on Thursday.
Former President Donald Trump’s administration ordered to divest TikTok business in the US market after a Bytedance rapped a national security threat.
So, President Biden revoked an executive order from Former President Donald Trump that banned the Chinese short video app TikTok and WeChat in the US. These Chinese apps can stay in the US market if they take some tougher measures under consideration.
In April, Chinese regulators look up 13 online platforms, including the short video app TikTok owner Bytedance, and oblige them to adhere to tighter regulations in their financial divisions.
In May, TikTok owner Bytedance announced that by the end of the year, the company’s CEO and co-founder would step down and move to a new role.
Mr. Zhang said he would be replaced by fellow co-founder Rubo Liang, told in a letter to employees.
“The truth is, I lack some of the skills that make an ideal manager. I’m more interested in analyzing organizational and market principles, and leveraging these theories to further reduce management work, rather than actually managing people,” Mr. Zhang wrote in a message on the company’s website.
“Similarly, I’m not very social, preferring solitary activities like being online, reading, listening to music, and contemplating what may be possible,” he added.
These steps show the biggest reform in the Chinese tech companies since its launch almost a decade ago.