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Chinese tech giant ByteDance (BDNCE) saw profit soar about 60% in 2023, surpassing growth of online peers Tencent (OTCPK:TCEHY) (OTCPK:TCTZF) and Alibaba (BABA), Bloomberg News reported citing people with knowledge of the matter.
The TikTok parent’s EBITDA rose to over $40B in 2023, compared to about $25B in 2022. Meanwhile, sales grew to about $120B versus $80B in 2022, the report added.
The results mark the first time that ByteDance has gone past rival Tencent both in revenue and profit, as it used its short-video platforms to expand into international e-commerce, according to the report.
The company’s internal figures have not been independently audited, but they suggest the social media company became one of the world’s fastest-growing tech companies in 2023.
Last year, ByteDance — which runs TikTok and its Chinese sister app Douyin — solidified its position as one of China’s internet leaders, alongside Tencent and Alibaba, which have struggled to reignite growth at a time when there is economic uncertainty and consumer wariness in China.
In the China, Douyin is turning into an all-in-one platform similar to Tencent’s WeChat, with its added features stepping on Alibaba’s ecommerce turf and competing with Meituan for food delivery orders. In February, ByteDance (BDNCE) said that Kelly Zhang was stepping down as Douyin Group’s CEO and will take up a new role at ByteDance’s video editing app.
Meanwhile, the successful launch of TikTok Shop outside China, in markets like the U.S. and Southeast Asia, has brought about new revenue sources, the report added.
TikTok, however faces challenges in the world’s largest economy. In March, the U.S. House of Representatives passed a bill directing ByteDance to either sell the U.S. operations of the app or face a ban in the country. Senators are yet to decide on how to tackle the issue.
Earlier this month, U.S. President Joe Biden and his Chinese counterpart Xi Jinping discussed TikTok and its ownership, among other things, on a call between the two world leaders.