Despite US Drama, the TikTok App is Still Profitable
In the middle of a looming ban and a sale deal that is far from reaching an end, TikTok revenues for August remain robust.
The estimated yields for August amounted to $88.1 million. This is almost seven times higher than its earnings for the same period a year ago.
The Chinese version of the Bytedance-owned app called “Douyin” is attributed to be the biggest puller of the move. It accounted for 85% of the social network app’s total revenue.
Interestingly, its take home from US operations, its second-biggest revenue source, stands at a 7.8% climb. This is amid the looming ban that could enter into force in November.
President Trump issued an executive order that comes with a 90-day deadline, calling for the sale of TikTok’s United States operations to American firms.
So far, Microsoft, Oracle, and Walmart expressed their intention to buy the stake. However, nothing is agreed upon yet. Experts note that the sale looks “less likely” as days pass.
Should the Bytedance-owned app fail to reach concessions with counterparts on the deadline set, the platform will be banned from the US indefinitely.
Sustainable Growth in Question
Although recent data shows revenue, August’s earnings are still below its May, June, and July performance, which played at $96 million, $91 million, and $103 million, respectively.
Similarly, the app’s download shares on the US market have immensely decreased this month.
It accounted for 76% of the total downloads under the video-sharing category in January, leaving its four other competitors sharing the meager 24%.
Today, its social network competitors’ total downloads climbed to 44%, thereby lessening TikTok’s share by 20%.
While the app weathers hurdles set by different countries, its parent company ByteDance continuously diversifies its portfolio.
It recently acquired a payment service called IUPay, signaling its dedication to get a share on the domestic payment market.
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