EXCLUSIVE TikTok owner ByteDance’s 2021 sales growth of 70% slows year-over-year – sources

BEIJING/HONG KONG, Jan 20 (Reuters) – TikTok owner ByteDance saw its total revenue rise 70% year-on-year to around $58 billion in 2021, according to two people familiar with the matter. slower growth than a year earlier as China tightens its regulation of big tech companies.

The figures were leaked to a small group of employees at an internal meeting at the social media giant this week, the people say.

In 2020, the Beijing-based company’s total revenue grew more than 100% to $34.3 billion, Reuters reported. Read more

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ByteDance did not immediately respond to a request for comment.

Chinese tech companies from Tencent Holdings (0700.HK) to Alibaba Group (9988.HK) have reported slowing growth amid a wide-ranging crackdown by the country’s regulators who have introduced new rules governing their functioning and their interactions with their users.

In the third quarter, Tencent posted its slowest revenue growth since its IPO in 2004.

ByteDance retained its second place in China’s online advertising market last year, with a 21% market share, according to a recent report by Interactive Marketing Lab researcher Zhongguancun.

The number one position was still held by e-commerce giant Alibaba, and third place went to gaming giant Tencent, according to the report.

Tik Tok logos are seen on smartphones in front of a ByteDance logo displayed in this illustration taken November 27, 2019. REUTERS/Dado Ruvic/Illustration/File Photo

Overall online ad sales growth in China fell to 9.3% in 2021 from 13.8% a year earlier, according to the report.

Tech news website The Information reported last November that ByteDance’s revenue in 2021 was on track to grow about 60% to 400 billion yuan ($63.07 billion).

ByteDance is one of the world’s largest private technology companies with recent private equity secondary market deals valuing it at around $300 billion, Reuters reported.

Following Beijing’s antitrust efforts, ByteDance recently downsized its powerful investment arm. Read more

In November, ByteDance reorganized into six business units in its biggest organizational change since ByteDance founder Zhang Yiming announced in May that he would step down as CEO. Read more

Besides TikTok, ByteDance’s other apps include its Chinese counterpart Douyin, news aggregator Jinri Toutiao and video streaming platform Xigua.

In 2021, users spent around $2.3 billion on TikTok and the iOS version of Douyin, a 77% jump year-over-year, according to app tracker Sensor Tower.

($1 = 6.3419 Chinese yuan renminbi)

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Reporting by Yingzhi Yang and Xie Yu; Editing by Brenda Goh and Elaine Hardcastle

Our standards: The Thomson Reuters Trust Principles.

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