The revenue of the short video app goes hand in hand with its popularity: in 2021 alone in Europe it has registered more than 1,000 million euros in turnover.
- Losses have also increased mainly due to the high hiring of the company, which has tripled its workforce in Europe.
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- TikTok multiplied its revenues by 6 in 2021 in Europe, going from the 172 million it registered in 2020, to 990 million dollars (about 1,010 million euros at current exchange rates) last year.
According to the accounts published by the company and collected by the Financial Times, although the technology company has experienced a real acceleration in its turnover, its losses have also increased by a third compared to the previous year, mainly due to the hiring of thousands of employees.
Specifically, TikTok’s pre-tax losses were 896 million dollars (917 million euros at current exchange rates) in 2021.
The increase in income has gone hand in hand with the meteoric rise of the app owned by the Chinese technology giant ByteDance, which today already has, according to estimates, 1,000 million monthly active users, while its staunch rival Instagram is around 1,200 millions.
Another cause of this brutal growth in income is the landing during 2021 of brands and advertising on the platform.
The accounts presented correspond to the operations of the social network in Europe and the United Kingdom, where the distribution of income has been 532 and 279 million, respectively. Last year, those numbers had been $114 million and $52 million, respectively.
Hiring in the Old Continent has skyrocketed in the last year within the social network. TikTok has grown from nearly 1,500 employees to more than 4,000 in just 12 months.
The TikTok paradox: creators get famous very fast, but they all make much less money than on any other social network
“The size of TikTok’s user base and the level of user engagement are crucial to our business, which continues to be significantly determined by our ability to retain our existing users, keep them engaged, and acquire new users in a profitable and profitable manner.” our ability to attract, cultivate and retain content creators to contribute to content,” said the company in the presentation of results collected by the FT.
As the app explodes in popularity around the world, its level of ad revenue continues to grow. According to the forecast by Insider Intelligence (which shares a parent company with Business Insider), TikTok’s advertising revenue in all the markets in which it is present will grow 184% this year, to almost 6,000 million dollars, surpassing Twitter and Snap together.
In fact, the trendy app among generation Z is already threatening to attack the online advertising duopoly of Facebook and Google.
TikTok’s efforts currently revolve around that business. How to monetize a user base of billions of users that does not stop growing. In the past year, it has made several forays into ecommerce with its TikTok Shop tool, and has improved monetization options for its content creators.
Rachel Maga is a technology journalist currently working at Globe Live Media agency. She has been in the Technology Journalism field for over 5 years now. Her life’s biggest milestone is the inside tour of Tesla Industries, which was gifted to her by the legend Elon Musk himself.