TikTok owner ByteDance reportedly recorded a $6 billion operating profit in the first quarter of the year.
That’s according to a Tuesday (Oct. 3) report by The Wall Street Journal (WSJ), which said it got a “rare” and “most detailed” look inside the finances of the Chinese tech giant.
The profit marks a turnaround for ByteDance in the last two years, as the company had a $7 billion operating loss in 2021, per the report. Its revenue jumped by more than 38% in 2022 to $85.2 billion.
However, as the company’s revenue expands, its revenue growth has slowed since the previous year, when it climbed by almost 80%, according to the report. The company generated upward of $20 billion in operating profit last year.
ByteDance is privately held and does not publicly share its earnings. WSJ said in its report that it got the information from a financial report shared with ByteDance staff Monday (Oct. 2). PYMNTS has contacted ByteDance for comment but has not yet gotten a response.
ByteDance has rapidly boosted revenues while at the same time making deep cuts to its marketing, administrative and research budgets, WSJ reported.
In August, the company’s TikTok rolled out its American eCommerce offering, dubbed TikTok Shop. ByteDance hopes the effort will become a revenue driver, WSJ reported, citing unnamed sources.
The company’s eCommerce plans are facing roadblocks elsewhere. ByteDance is now subject to new Indonesian regulations forbidding social media platforms from handling direct payments for online purchases.
Under those rules, TikTok can advertise to its more than 100 million users in the Southeast Asian country, but those customers need to visit a different app or site for purchases.
TikTok announced Tuesday it would halt transactions on TikTok Indonesia effective Oct. 4 to comply with those laws, Reuters reported.
TikTok also faces ongoing pressure in the U.S., with New York City last month blocking the app on the devices of city employees.
The ban follows measures last year at the state and federal levels. Congress included a provision outlawing TikTok on government devices in the spending bill, while South Dakota’s governor banned TikTok, accusing the company of collecting data for China’s government (a charge its CEO has denied).