TikTok nets $16b in US revenue despite regulatory hurdles: report

Photo credit: TikTok

ByteDance-owned TikTok has reported US$16 billion in revenue for the US market in 2023 as it faces a potential ban in the country, reported the Financial Times.

Driven by TikTok’s massive growth – particularly in China – ByteDance recorded US$120 billion in revenue in 2023, up 40% from the previous year, noted the report, which cited sources.

The company is poised to surpass Meta’s position as the world’s largest social media company in terms of revenue. The US-headquartered firm reported a 16% increase in its numbers, with proceeds at US$135 billion for 2023.

However, TikTok, which has a solid base of 170 million users in the US, is confronting the possibility of a ban or sale in the country amid escalating tensions between the US and China.

Last week, the lower house of the US Congress passed a bill requiring ByteDance to divest TikTok’s US assets within six months or risk facing a ban.

There have been allegations of the Chinese government’s influence on the social media app, which ByteDance CEO Shou Zi Chew has denied.

TikTok is just one of the Asian tech giants feeling the heat from regulators. Others in the same situation as the short-video app include Shopee, which is facing scrutiny in Indonesia over alleged monopolistic practices.

Another is Paytm: Its affiliate, Paytm Payments Bank, was ordered by the Reserve Bank of India to hit pause on all of its banking services.

See also: TikTok’s Asia business logs rapid revenue growth to reach $5.4b in 2022