Report: ByteDance's revenue in 2023 exceeds $110 billion, surpassing Tencent.

On December 20th, media reports stated that ByteDance's revenue is expected to grow by 30% YoY to $110 billion in 2023, with the development of ByteDance's e-commerce business becoming its growth engine.

This also means that ByteDance's revenue in 2023 may surpass Tencent and approach Meta. Tencent is expected to achieve revenue of $86 billion this year, while Meta is expected to achieve revenue of $133 billion.

Media analysis points out that the revenue growth of over 30% is largely contributed by ByteDance's e-commerce business. According to informed sources, ByteDance's e-commerce GMV in Southeast Asia has exceeded $13 billion, with Indonesia surpassing $4 billion and the Thai market reaching around $3.5 billion. The two-month ban in Indonesia alone resulted in a loss of at least $1 billion.

ByteDance has set a GMV target of $50 billion for 2024, which represents an increase of over 100% compared to this year's target of $20 billion.

At the same time, media analysis indicates that advertising revenue is also a major reason for ByteDance's revenue growth outpacing other internet companies this year, even though the overseas business revenue of ByteDance accounts for only 20% of the total revenue. In fact, ByteDance has squeezed Google and Facebook's advertising revenue in the United States to below 50%.

E-commerce advertising is the main source of ByteDance's advertising revenue. The report shows that in the first half of 2023, ByteDance's global advertising distribution was 77.9% for e-commerce advertising, 15.3% for app advertising, and 6.8% for game advertising. In major advertising revenue sources such as the United States and the United Kingdom, the revenue share of e-commerce advertising even reaches around 85%.

According to data released by third-party institutions, ByteDance's monthly active users reached 1.4 billion in 2022. It is conservatively estimated that by the end of 2023, ByteDance's global active users will reach 1.8 billion. ByteDance's attractiveness to advertisers lies in the fact that the majority of its users on ByteDance are young users aged 18-34, and they have high user stickiness.

This may not be the first time that ByteDance's revenue surpasses Tencent. Media reports stated that ByteDance's revenue in the second quarter of this year increased by over 40% YoY to $29 billion, with revenue in the first half of the year reaching approximately $54 billion. Tencent's financial report shows that its revenue in the first half of this year was approximately RMB 299.2 billion (about $41.3 billion).

Previously, there were reports that in 2022, ByteDance's revenue increased by over 38% YoY to $85.2 billion, with a net profit of over $20 billion, while Tencent's revenue in 2022 was approximately RMB 554.6 billion, equivalent to $76.6 billion. This also means that ByteDance may have surpassed Tencent Holdings in revenue in 2022.According to the data, ByteDance's total revenue in markets outside of China was $16 billion last year, a significant increase from $6.5 billion in 2021 and $1.2 billion in 2020. Last year, ByteDance's overseas market revenue accounted for 19% of the company's total revenue of $85 billion.