ByteDance sees slower y-o-y growth in 2021 amid China's tech crackdown

ByteDance sees slower y-o-y growth in 2021 amid China's tech crackdown

by Pranali Mehta

 

  • The company retained its second rank in China's online advertising market last year.
  • ByteDance's 2021 revenue was estimated to increase 60% to USD 63.07 billion in 2021.

TikTok-parent ByteDance has reported a 70% growth in total revenue, accounting for USD 58 billion in the year 2021. This is comparatively slower than its last year's revenue spike of over 100% to USD 34.3 billion.

The news comes amidst tightening regulations for big tech companies in China. For those unaware, the country's regulators have introduced new guidelines for technology giants on how they operate as well as interact with their users.

ByteDance is one of the largest private tech companies in the world, valued at approximately USD 300 billion as per the recent trades in the private equity secondary market. The company was also compelled to downsize its robust investment arm amidst China's tech crackdown.

Back in November, the TikTok owner also reorganized itself into six different business units, one of its largest organizational changes since founder Zhang Yiming stepped down as CEO. Other apps in ByteDance's portfolio include TikTok's Chinese equivalent Douyin, video-streaming platform Xigua, and news aggregator Jinri Toutiao.

According to reliable sources, users have spent around USD 2.3 billion in TikTok as well as on the iOS version of Douyin, a notable 77% year-over-year growth in 2021.

It is also worth mentioning that ByteDance's 2021 revenue was estimated to increase 60% to USD 63.07 billion in 2021. Even Alibaba Group and Tencent Holdings have seen sluggish growth in 2021, with the latter reporting its slowest revenue growth since its stock market debut in 2004.

But ByteDance managed to capture a 21% share in China's online advertising market last year, retaining its second rank and after e-commerce behemoth Alibaba while gaming giant Tencent continued to rank third.

The growth of online ad sales in China had also declined to 9.3% in 2021 from 13.8% recorded the year before.

Source Credits –

https://money.usnews.com/investing/news/articles/2022-01-20/

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...