- ByteDance saw a 60% increase in EBITDA, reaching over $40 billion.
- The company surpassed Tencent in revenue and profit.
- However, ByteDance faces regulatory challenges.
ByteDance, the China-based parent company of TikTok, witnessed a remarkable 60% increase in its EBITDA, reaching over US$40 billion in 2023, according to sources familiar the matter.
This impressive growth occurred despite the company facing numerous regulatory challenges throughout the year.
Diversification drives ByteDance’s success
ByteDance’s revenue surged from US$80 billion to around US$120 billion, enabling the company to surpass Tencent in both revenue and profit for the first time.
The company’s success can be attributed to its diversification efforts, Douyin, the Chinese version of TikTok, making inroads into Alibaba’s ecommerce space and competing Meituan in food delivery.
Additionally, ByteDance has expanded its overseas business the rollout of TikTok Shop in the US and Southeast Asia.
The black cloud behind silver linings
Despite its success, ByteDance faces potential regulatory challenges, TikTok on the verge of being banned in the US unless ByteDance relinquishes ownership.
The company has also focused on profitability by cutting jobs in high-risk ventures like gaming and enterprise software, instead zeroing in on AI development.
In December, ByteDance proposed buying back shares worth up to US$5 billion at a lower valuation of US$268 billion, down from its peak of US$400 billion.
To read the original article: https://www.techinasia.com/bytedance-eclipses-tencent-revenue-profit-2023-report
