ByteDance, the parent company of TikTok, lost $7.15 billion in operational costs last year, more than three times the losses it reported in 2020.
The high operational losses came along with revenue growth of 80%, reaching $61.7 billion in 2021 as the company made significant investments in supporting its growth.
An internal report seen by the WSJ indicates that ByteDance’s cost of sales reached $27.4 billion in 2021, up 79% compared to the year before. The company’s entertainment business spent $14.6 billion on research and development, while $19.2 billion were spent on sales and marketing activities.
The company still reportedly managed to make a profit in the first quarter of this year, with its revenue exceeding $18 billion, up 54% YoY. It ended the quarter with $42.6 billion in cash reserves and $74 billion in total assets.
TikTok’s revenue growth comes at a time when consumers are reigning back their mobile app spending. In Q3 this year, consumer app spending declined by 5%. However, TikTok delivered a record-breaking quarter, reporting the highest revenue for the fourth quarter in a row.
According to TechCrunch, TikTok was the top-grossing non-game app on the App Store, while on Google Play, it ranked number two behind Google One, which generated $330 million for the quarter.