ByteDance’s Revenue Growth Slows

TikTok’s parent company, ByteDance, saw its revenue growth slow down by 70% year on year, with its total revenue reaching $58 billion — slower than the year before. Last year, the company’s revenue grew by more than 100 percent, reaching $34.3 billion.

ByteDance is far from the only company seeing a decline in revenue amid a tightening regulatory environment in China. Other tech giants such as Tencent and Alibaba are in a similar position as the Chinese government continues to reign in how these companies operate and interact with their user base.

That said, ByteDance remains a dominant player, especially when it comes to online advertising. The company has the second-largest advertising business in China, representing a 21% market share. The top spot is held by Alibaba, whereas Tencent Holdings has the third largest advertising business, according to Reuters.

Overall, all three companies are being impacted by the slowdown in ad spend and government crackdowns. Growth in online ad sales was down 9.3% in 2021 from 13.8% in 2020.

In November last year, ByteDance announced that its founder Zhang Yiming was stepping down from his chief executive role and that the company was reorganizing its business into six units. The company is also scaling down in the investment division.

TikToK Names Shouzi Chew as Its New CEO

Originally published at https://retailbum.com on January 21, 2022.

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