ByteDance's Profit Growth Decelerates, Net Profit Margin Shrinks
26 April 2025 · Uncategorized ·
Source: · https://finance.technews.tw/2025/04/11/bytedances-2024-revenue-shows-importance-of-tiktok/
Result
According to media reports citing The Information, insiders reveal that ByteDance, the parent company of TikTok, reported a net profit of $33 billion in 2024, a modest 6% year-on-year increase. This growth rate represents a significant slowdown compared to 2023.
ByteDance’s overseas business revenue, primarily from TikTok, grew by 63% last year, reaching $39 billion. With the company’s China business experiencing slower growth, overseas revenues now constitute one-fourth of ByteDance’s total revenue – the highest proportion on record.
Insiders report that ByteDance executives informed some investors during last year’s performance disclosures that profit margins had peaked. The company plans to increase investment in artificial intelligence (AI) over the next few years, as evidenced by the net profit margin declining from 26% in 2023 to 21% in 2024.
These figures underscore ByteDance’s slowing growth, indicating increased spending across multiple areas. The deceleration in both profit growth and profit rate suggests rising expenditures in AI and the US e-commerce sectors.
According to media reports citing The Information, insiders reveal that ByteDance, the parent company of TikTok, reported a net profit of $33 billion in 2024, a modest 6% year-on-year increase. This growth rate represents a significant slowdown compared to 2023.
ByteDance’s overseas business revenue, primarily from TikTok, grew by 63% last year, reaching $39 billion. With the company’s China business experiencing slower growth, overseas revenues now constitute one-fourth of ByteDance’s total revenue – the highest proportion on record.
Insiders report that ByteDance executives informed some investors during last year’s performance disclosures that profit margins had peaked. The company plans to increase investment in artificial intelligence (AI) over the next few years, as evidenced by the net profit margin declining from 26% in 2023 to 21% in 2024.
These figures underscore ByteDance’s slowing growth, indicating increased spending across multiple areas. The deceleration in both profit growth and profit rate suggests rising expenditures in AI and the US e-commerce sectors.