ByteDance's sales jumped 30% to match Tencent's $80 billion sales after the TikTok boom

After twin video platforms TikTok and Douyin drew eyes and advertisers from social media incumbents such as Facebook and WhatsApp, ByteDance Ltd.'s revenue grew by more than 30% to surpass $80 billion in 2022, matching its archrival Tencent Holdings Ltd.'s tally.

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An executive at the world's most valuable private tech firm told its investors in a recent memo that revenues were up from around $60 billion in 2021 to over $160 billion in 2022, according to a source who saw the memo but wished to remain anonymous since it was a private matter. 

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With a double-digit growth rate, it outperformed many of the global internet leaders, including Meta Platforms Inc. and Amazon.com Inc. ByteDance has now hit $80 billion in top-line revenue, which puts it almost on par with WeChat operator Tencent, which made 554.6 billion yuan ($80 billion) last year in revenue. ByteDance representatives did not respond to a request for comment regarding the company's financials.

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With this pace of growth, ByteDance has demonstrated the resilience of its business at a time when Washington is threatening to join India in banning TikTok, which is being removed from the official phones of a growing number of government agencies across the globe at the moment. Because more cost-conscious marketers are turning away from online media and toward faster-growing video services as a way to meet consumer demands, TikTok and its Chinese cousin, Douyin, are siphoning ad dollars from other social media platforms.

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The global recession has taken its toll on technology companies, but ByteDance has had to deal with other issues that were beyond just higher interest rates and inflation - particularly in the United States and in China, the home of the company.

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In America, TikTok has amassed more than 150 million monthly users, raising concerns about the possibility of Chinese companies gaining access to the data it collects on its users. Shou Chew, the CEO of TikTok, sat through a hostile four-and-a-half-hour congressional hearing this month. It was a difficult experience for him as he did little to sway some of his employer's most vocal critics during the hearing.

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After a year full of endless regulatory crackdowns and Covid restrictions back home, ByteDance joined the ranks of fellow Chinese companies Alibaba Group Holding Ltd. and Tencent in implementing unprecedented cost curbs. It appears that the Beijing company founded about a decade ago is curtailing some of its riskier projects, such as those in the gaming and venture capital sectors. With Douyin evolving into an all-in-one app with built-in purchases, online meal delivery, and grocery features, the video forum remains the most lucrative cash cow for the company.

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ByteDance's still-robust growth could boost confidence among investors shaken by recent global events who have been shaken by its current performance. The Chinese social media powerhouse TikTok has recently been valued at around $220 billion in a recent private-market investment by Abu Dhabi AI company G42, which is a significant drop from the $300 billion that its owner set during a share buyback program in September.