Fri. Mar 29th, 2024

ByteDance, parent company of popular video entertainment App TikTok has made $3 billion net profit from the last year of revenue generated through its business. ByteDance’s total revenue last year was over $17 billion. The Revenue generated last year is more than its previous year’s revenue of $7.4 billion. That means the company is growing profitable at a very high speed and its future fortune seems very good. This year, former Disney executive Kevin Mayer has even given his resignation to Disney to become Chief Executive Officer of TikTok.

TikTok is continuously becoming popular. ByteDance has 1.5 billion monthly active users and TikTok’s growing popularity is substantial in it. ByteDance’s average market capitalisation estimate is between $150 billion to up to $180 billion in an Initial Public Offering (IPO). As per Bloomberg’s last report, on the secondary markets, the company has got the valuation between $105 billion to $110 billion by some private trades. Though the company is less interested in making a ‘Public Offering’ as its already doing well financially and is hugely profitable.

‘Ke Yan’, a Singapore based analyst with DZT said, “None of the Chinese tech companies has achieved this level of success in the global market before ByteDance. The fact that ByteDance is making a profit, if true, and sitting on a $6 billion cash pile means that it is not in a rush at all to come to market to raise capital, and therefore less likely to offer the shares at a more reasonable price for IPO investors.”

This year, the company has created 40,000 new jobs. According to CB Insights Researcher, SoftBank Group Corp, General Atlantic and Sequoia-backed ByteDance is already the world’s most valuable startup.

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