London Daily

Focus on the big picture.
Saturday, May 31, 2025

TikTok parent ByteDance sees losses swell in push for growth

TikTok parent ByteDance sees losses swell in push for growth

TikTok's operating losses in 2021 totaled $7.15 billion, up from $2.14 billion in 2020

TikTok parent ByteDance Ltd. saw its operating losses more than triple last year to above $7 billion as it spent heavily to continue its torrid growth, according to a financial report shared with employees that offers a rare look inside the private company’s closely guarded finances.

ByteDance also produced an operating profit in the first quarter of 2022, the report showed, indicating one of the world’s most valuable startups could be turning a corner after years of incurring large losses.

As a private company based in Beijing, ByteDance has closely guarded its finances and doesn’t publicly disclose results. The report—sent to employees in August and that covers the full years for 2020 and 2021 as well as the first quarter of 2022—provides one of the most detailed looks at how it is performing and is planning for the future.

The report shows a company rapidly increasing its revenues, accumulating a massive war chest of cash and other investments, but with net results weighed down by tens of billions of dollars in unrealized market losses on convertible securities.

An unrealized loss occurs when the market value of a security drops even though the asset hasn’t been sold.

Largely because of the accounting treatment of those securities, ByteDance’s net loss widened by more than 87% to $84.9 billion in 2021, according to the report.

ByteDance’s revenue continues to expand, up nearly 80% to $61.7 billion in 2021, but so too are the company’s expenses as it focuses on growth. The Chinese company’s cost of sales came in at $27.4 billion for 2021, up 79% from the previous year. Among the factors offsetting its rapid revenue growth: $14.6 billion in research and development spending, $19.2 billion in selling and marketing expenses and $75.6 billion in market-value changes on a range of convertible securities. That was up more than 76% compared to 2020.

ByteDance Ltd., the Chinese owner of popular short-video app TikTok, put on hold indefinitely its intentions to list offshore earlier this year after government officials told the company to focus on addressing data-security risks, people familiar wi


The company’s operating losses in 2021 totaled $7.15 billion, up from $2.14 billion in 2020, the report said.

A ByteDance spokeswoman declined to comment.

n this photo illustration, the TikTok app is displayed on an Apple iPhone on August 7, 2020 in Washington, DC. On Thursday evening, President Donald Trump signed an executive order that bans any transactions between the parent company of TikTok, Byt


While TikTok is by far the company’s most high-profile product in the U.S., ByteDance also runs apps used by hundreds of millions of people in China—including short-video app Douyin and Jinri Toutiao, or Today’s Headlines. The report viewed by The Wall Street Journal doesn’t break out the relative performance of the company’s units.

Revenue reached nearly $18.3 billion for the first three months of 2022, up almost 54% compared to a year prior. ByteDance showed it was beginning to rein in its expenses, with net loss for the period coming in at $4.7 billion, down nearly 84% from $29.1 billion a year prior.

The reduction in net losses in the first quarter of 2022 could reflect ByteDance readjusting its valuation as Chinese internet companies have been hit by the government’s crackdown on the tech industry.

Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×