ByteDance’s revenue in the third quarter of 2023 is US$30.9 billion, and TikTok’s e-commerce business brings continued growth.
ByteDance's revenue in the third quarter of 2023 increased by approximately 43% to US$30.9 billion, approximately twice that of Facebook's parent company's Meta platform. In the first three quarters of 2023, ByteDance's revenue increased by 40% year-on-year to US$84.4 billion, operating profit increased by 53% year-on-year to nearly US$23 billion, and cost of sales increased by 2% year-on-year to US$5 billion. In 2023, ByteDance's revenue will increase by 30% year-on-year to US$110 billion, among which the development of TikTok's e-commerce business is becoming the main force driving Byte's growth.
For a long time, ByteDance has generated most of its revenue from the Chinese market, and its short video app Douyin has more than 600 million daily active users. But what should not be underestimated is that with the global development of TikTok, ByteDance’s overseas business has grown rapidly. In 2023, TikTok has nearly 1 billion monthly active users worldwide. Among them, TikTok’s monthly active users in the United States have exceeded 150 million, accounting for nearly 45% of its total population. TikTok’s cumulative user spending reached $10 billion, becoming the first non-game app to achieve this goal. At the same time, TikTok has also launched multiple localized versions around the world to adapt to language and cultural differences in different countries and regions.
However, ByteDance’s competition in overseas markets is becoming increasingly fierce. In addition to social media giants such as Facebook, Twitter, and Snapchat, streaming media platforms such as Netflix and YouTube are also actively entering the short video market. In addition, some countries and regions have raised questions about TikTok's security and privacy issues, which has also brought certain challenges to ByteDance's overseas business.
At present, the GMV of TikTok e-commerce in Southeast Asia has exceeded US$13 billion, of which the Indonesian market has exceeded US$4 billion and the Thai market has been around US$3.5 billion. More than two months of ban caused TikTok to lose at least US$1 billion in the Indonesian market.
Facing 2024, TikTok e-commerce’s GMV target is US$50 billion, an increase of more than 100% compared to the US$20 billion target in 2023. In 2024, grasping the development of TikTok Shop in the United States is also regarded as one of the key tasks of TikTok. In addition, after completing the market layout in Southeast Asia, the Middle East, Europe and the United States, TikTok will turn its target to Latin America.