TikTok Owner ByteDance Wins First Mobile Game Hit; Bumps Annual Revenue to $34 Billion

Tiktok owner, ByteDance, successfully scored its first mobile game hit. Together with the company's other projects, its annual revenue spiked to $34.3 billion.

A mobile game developed by TikTok owner, ByteDance, became China's fifth-biggest video game by revenue in May. The game demonstrated ByteDance's potential as a robust competition to Tencent Holdings' superiority of the lucrative sector.

The company's success after releasing "One Piece: The Voyage" is an excellent indicator that it will start producing more mobile games in the future.

On the other hand, the China-based company had a massive spike in its annual revenue, closing up to $34.3 billion. It is a collective data from its numerous applications, such as TikTok, which paved the way for its globalization.

TikTok Owner ByteDance - One Piece: The Voyage

ByteDance recently showed its interest in the world of gaming, releasing "One Piece: The Voyage." CMGE Technology Group and Nuverse developed the pirate-themed mobile game.

Nuverse is a game studio by ByteDance that launched on April 23 in China. It initially gained some well-deserved popularity, becoming ByteDance's first title to crack into the top 10 list by CNG, a Chinese market app tracking firm.

Even though Tencent's video games still rain as the top revenue-earning mobile games, the fact that ByteDance's "One Piece: The Voyage" managed to come close only means that the company is on to something big.

South China Morning Post reported that the game got over US$50 million in less than two months, which gave the company a huge confidence boost in competing against Tencent.

It is no secret that China has a hyper-competitive gaming market, but just a single successful mobile title can ultimately make a huge difference.

For example, miHoYo rose at the top of the market after releasing "Genshin Impact" in September 2020.

ByteDance's US$34.3 Billion Revenue

According to The Wall Street Journal, TikTok owner ByteDance Ltd recently announced their 2020 revenue. It doubled up to $34.3 billion, exemplifying why the China-based company is currently one of the world's most significant startups.

On June 17, the company shared some of its 2020 financial performance with its trusted employees.

As per WSJ, ByteDance grew by 111% from their 2019 revenue. Their gross profit increased by 93%, which totals $19 billion.

Overall, the company had 1.9 billion monthly active users throughout various platforms, including the infamous video app TikTok.

ByteDance also has another app similar to TikTok called Douyin, which is TikTok's domestic Chinese equivalent.

In 2020, ByteDance had a net loss of $42 billion, primarily caused by an accounting adjustment that the company made to increase its convertible redeemable preferred shares' fair value.

ByteDance, founded by Chinese entrepreneur Zhang Yiming, rose in 2012. Since then, the company has garnered billions of U.S. dollars from various global investors, including Sequoia Capital, General Atlantic, and KKR & Co.

This article is owned by Tech Times

Written by Fran Sanders