In a recent report by the Financial Times, TikTok, the popular social media platform owned by China’s ByteDance, has achieved a significant financial milestone in the United States. Despite looming threats of a ban from Washington, TikTok’s US revenue soared to approximately $16 billion last year, capturing the attention of Gen Z users nationwide.
ByteDance, often referred to as the “App Factory” for its prolific production of mobile applications, has seen a substantial increase in its overall revenue. In 2023, the company reported earnings of $120 billion, marking a 40% rise from the previous year. This growth is largely attributed to TikTok’s explosive popularity, although a considerable portion of ByteDance’s sales still emanates from China.
The short video app, which is frequented by around 170 million Americans, notched record sales in the US in 2023. This performance positions ByteDance on a trajectory to potentially surpass Meta Platforms, the parent company of Facebook, as the world’s largest social media entity in terms of sales. Meta reported a 16% increase in revenue for 2023, totaling $134.90 billion.
Despite these impressive figures, TikTok faces regulatory challenges in the US. The House of Representatives recently passed a bill that would require ByteDance to divest TikTok’s US operations within six months or face a prohibition on the app’s use in the country.
TikTok’s popularity remains undiminished among American users. It was the most downloaded social media app in the US for 2023, with Sensor Tower reporting 47 million downloads. Facebook and Instagram followed behind with 35 million and 34 million downloads, respectively.
ByteDance has not yet responded to requests for comments on these developments. As the situation unfolds, industry observers and TikTok enthusiasts alike are keenly watching to see how the company will navigate these regulatory hurdles while maintaining its impressive growth trajectory in the competitive social media landscape.
