ByteDance, the parent company of TikTok, reported an operating profit of nearly $6 billion in the first quarter of 2023, according to the Wall Street Journal.
This marks a significant improvement from the previous year, demonstrating the company's successful cost-cutting efforts. In 2021, ByteDance had reported an operating loss of $7B, according to earlier reports from The Wall Street Journal.
Despite its impressive operating profit figures, ByteDance has experienced a slowdown in revenue growth. In 2022, the company's revenue increased by over 38%, reaching $85.2B. However, this growth rate is lower compared to the previous year when revenue surged by nearly 80%. Nevertheless, ByteDance still achieved more than $20B in operating profit for the entire year.
As part of its financial disclosures, ByteDance has offered to repurchase shares from current employees at a price of $160 per share. The company has stated that it has 1.4 billion shares outstanding, implying a total valuation of $223.5B.
This valuation represents a decrease of nearly 26% compared to the $300B valuation reported a year ago.
In 2022, Byte Dance achieved $85.2B in sales, which, while impressive, was slightly less than Meta's (NASDAQ:META) revenue of $116.6B during the same period. Snap (NYSE:SNAP), the parent company of Snapchat, reported revenue of $4.6B for the year 2022, while Pinterest (NYSE:PINS) reported revenue of $2.8B in 2022.