INTRO: For better or worse, the TikTok app has even sprouted a bunch of clones including Mitron, and Zynn. However, TikTok is not slowing down. In fact, according to a new report, ByteDance’s revenue for the first quarter is around $5.6 billion. The number is quoted by two people familiar with the matter and isn’t an official statement from the company. However, it’s a massive number and represents a solid growth for the company.
In fact, if this number is true, it represents a 130% increase, year over year, for ByteDance. The two people who spoke with Reuters said that the company is targeting 200 billion yuan in revenue for 2020. ByteDance is reportedly hoping to reach revenue figures half that of Tencent Holdings. For the unaware, Tencent reported 377 billion yuan in revenue in 2019, so the 200 billion yuan target seems right for ByteDance.
It is noteworthy that TikTok isn’t the only revenue stream for ByteDance. In fact, it may not even be the biggest one. ByteDance’s main source of revenue is from advertisements on its apps. These include news aggregator Jinri Toutiao, and Douyin — the domestic version of TikTok.
ByteDance is enjoying huge growth in light of the Coronavirus pandemic that has forced people to stay inside. The company was recently reportedly valued at $95 billion to $140 billion for private trading. It’s also focusing on monetizing TikTok and has hired ex-Disney streaming head, Kevin Mayer to oversee TikTok.