TikTok UK Records $119 Million Loss Last Year
Chinese short video app,Â 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 TikTokâ€™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.Â In contrast, ByteDance had revenue of more than $17 billion in 2019. The company also records a net profit of overÂ $3 billion. According to data from a startup tracking agency, CB Insights, Bytedanceâ€™s valuation is now at $140 billion dollars.Â TikTok UKÂ 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: â€œAs 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 TikTokâ€™s early development and investment in the UK.â€
ByteDance stated in a document submitted by the United Kingdom: â€œIt is considering certain strategic options related to the future operating structure of TikTokâ€™s global business, but any changes will not have a direct impact on the UK business.â€