TikTok registers billion-dollar rise and gains more than 1 billion users

With a growing user base and new monetization strategies, TikTok turns live broadcasts into a billion-dollar success

The international short video platform, TikTokowned by ByteDancereported total revenue of US$4.6 billion in 2023representing a impressive increase of almost 75% compared to the previous year, in markets outside the United States, Asia and Oceania.

With more than 1 billion users around the world, TikTok attributed this growth to “continuous growth of [sua] user base“, “enhanced monetization tools to improve advertiser experience and ad performance” and a significant increase in “live streaming revenue“, as stated in a recent record made by TikTok Information Technologies UK next to Companies Housethe British agency responsible for company registration.

However, the operating loss of the platform increased drastically, reaching 167%or US$1.4 billion. The British unit and its subsidiaries operate the application in regions such as Europe, South and Central America and Africa. The operating loss margin jumped to 30% last year, compared to 20% in 2022, due to “specific provisions of legal and related issues“, which cost more than US$ 1 billion.

The unit did not disclose specific details by region for 2023 revenue, but in a previous 2022 release, the European Union had contributed 57% of the recipe, followed by United Kingdom com 22%.

The company also reserved more than US$ 1 billion until the end of last year to cover “legal and related issues“. TikTok is preparing for “potential liabilities arising from various ongoing regulatory compliance investigations or decisions made by relevant regulators“.

TikTok did not immediately respond to a request for comment on Tuesday. The British unit’s results were initially reported by Forbes.

The results highlight the continued strong adoption of TikTok, even as the platform lays off hundreds of employees globally, focusing more on artificial intelligence for content moderation.

Currently, TikTok faces increasing scrutiny already European Union.

This month, the European Commission launched an investigation into TikTok’s social media practices and recommendation algorithms, YouTube e Snapchatdue to concerns about the spread of fake news. In August, TikTok agreed to remove the app’s rewards program TikTok Litewhich regulators classified as potentially addictive and harmful to the mental health of young people.

Also this month, 13 US states and the D.C. sued TikTok for allegedly failing to protect young people and misrepresenting their commitment to public safety.

In September, TikTok and its parent company, ByteDancewere taken to court, arguing before a federal panel that the new law requiring the sale of the app’s U.S. operations or banning it was unconstitutional and a violation of the rights of freedom of expression of users.

With information from News Agencies