A financial report shared with ByteDance employees offers insight into the company’s finances.
As reported by the Wall Street Journal, the company’s financial situation, including profits, are a closely guarded secret and as such aren’t disclosed to the public. In August, however, employees were sent a report covering the period from January 2020 to the end of 2022’s first quarter.
Although ByteDance’s revenue continues to grow, with the company reporting $61.7 billion in 2021, expenses are also racking up. 2021 also saw the company spend $19.2 billion in selling and marketing expenses, $14.6 billion in research and development, and $75.6 billion in market-value changes on convertible securities.
In total, despite the company’s success, 2021 saw its market losses reach $7.15 billion, more than triple the $2.14 billion reported in 2020.
A ByteDance spokeswoman declined to comment when approached by the Wall Street Journal.
The first quarter of 2022 saw a marked uplift in revenue, reaching $18.3 billion for the period – a year-on-year increase of almost 54 percent. Net loss for the period also decreased 84 percent from $29.1 billion to $4.7 billion, signifying that the company is reining in its expenses.
Wall Street Journal journalist Salvador Rodriguez writes “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.”
Despite the increase in expenses, ByteDance has increased its cash and cash equivalents, reaching $42.6 billion at the end of March compared to $34.1 billion in December. Similarly, total assets were valued at $74 billion in March – an increase of almost $10 billion from the end of 2021.
In August, we listed ByteDance as one of the top 50 mobile game makers of 2022.