TikTok owner ByteDance reports $2.1bn loss after share issue
The Chinese company’s net loss ballooned to $45bn, mainly stemming from accounting adjustments
ByteDance, the parent of hit short video app TikTok, swung to an operating loss of $2.1bn in 2020 after it issued more shares to employees ahead of a widely anticipated initial public offering.
The loss compared with operating profit of $684m in 2019, according to a memo to employees on Thursday. That was due in part to higher expenses incurred from share-based compensation to workers, a person familiar with the matter said, while expenses also soared as ByteDance boosted spending to acquire users and support its content creators. It earned gross profit of $19bn on revenue of $34.3bn, which more than doubled. Net loss ballooned to $45bn, mainly stemming from accounting adjustments...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.