TikTok's revenue in United States surges to $16 billion amid ban threat: Report

By Team Asianet Newsable | First Published Mar 15, 2024, 7:34 PM IST

According to a report by the Financial Times, TikTok amassed approximately $16 billion in revenue in the US alone last year, highlighting its remarkable success in the American market.

ByteDance-owned TikTok, the viral video app that has captivated Gen Z users worldwide, has reported staggering revenue figures despite facing the looming threat of regulatory action in the United States. According to a report by the Financial Times, TikTok amassed approximately $16 billion in revenue in the US alone last year, highlighting its remarkable success in the American market.

The exponential growth of TikTok has been a driving force behind ByteDance's overall revenue surge, which reached $120 billion in 2023, marking a substantial 40% increase from the previous year. While China remains a significant contributor to ByteDance's sales, TikTok's rapid expansion in the U.S. has played a pivotal role in bolstering the company's financial performance.

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With approximately 170 million American users, TikTok achieved record-breaking sales in the United States in 2023. This remarkable feat underscores the platform's growing influence and popularity among American consumers, particularly among younger demographics.

ByteDance, often referred to as the "App Factory" due to its frequent release of mobile applications, is poised to surpass Meta Platforms, the parent company of Facebook, as the world's largest social media company by sales. Meta Platforms reported a revenue increase of 16% in 2023, reaching $134.90 billion.

Despite its impressive financial achievements, TikTok faces significant regulatory challenges in the United States. The U.S. House of Representatives recently passed a bill that would compel ByteDance to divest its US assets within six months or risk facing a ban. This legislative action reflects growing concerns among policymakers regarding TikTok's data privacy practices and its potential national security implications.

Despite these regulatory hurdles, TikTok continues to dominate the social media landscape, emerging as the most downloaded social media app in the United States in 2023. With 47 million downloads, TikTok surpassed competitors such as Facebook and Instagram, which recorded 35 million and 34 million downloads, respectively, according to market intelligence firm Sensor Tower.

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