Chinese short video app, TikTok, has recorded a loss of $119 million in the UK in 2019. This is actually due to its higher spending on advertising and marketing. Nevertheless, its parent company, ByteDance, did not disclose TikTok’s global revenue data.
According to the company’s latest declaration, its sales in the UK in 2019 hit $20 million. Furthermore, its annual sales and marketing expenses were $109 million. In contrast, ByteDance had revenue of more than $17 billion in 2019. The company also records a net profit of over $3 billion. According to data from a startup tracking agency, CB Insights, Bytedance’s valuation is now at $140 billion dollars. TikTok UK is doing exceptionally well.
Within just a few years, TikTok become one of the most popular apps in the world, especially among teenagers. At the end of 2018, TikTok had only a few employees in the UK. Since then, the company has been accelerating its expansion, recruiting hundreds of employees from its social media competitors, and considering London as its international headquarters.
A TikTok spokesperson said: “As of today, TikTok has more than 100 million users in the UK and Europe. We are excited about the future growth potential. These numbers reflect the results of TikTok’s early development and investment in the UK.”
ByteDance stated in a document submitted by the United Kingdom: “It is considering certain strategic options related to the future operating structure of TikTok’s global business, but any changes will not have a direct impact on the UK business.”