TikTok has filed financial results for its European business for fiscal year 2021 (ending December 31).
The filing, publicly available on UK Companies House for TikTok Information Technologies UK Ltd, shows revenue of US$990.46 million within 12 months.
This turnover for the year represented a growth of 477% Annualfrom $171.62 million in 2020 (see below).
TikTok Information Technologies UK Ltd represents TikTok’s business for users in the EEA (EU countries plus Iceland, Liechtenstein and Norway), in addition to users in the UK and Switzerland.
TikTok says its revenue growth in these regions in 2021 was “primarily driven by continuous growth” of its user base.
He also pinned this growth on what he calls “enhanced monetization tools to improve advertisers’ experience.
However, in the filing, TikTok reveals an annual operation loss of $895.58 millionexpanding from 37% year over year compared to a $654.20 million loss in 2020 (see below).
TikTok’s losses are mainly due to increased personnel costs, with the average monthly number of the platform employees in Europe moving from 1,302 in 2020 for 4,396 in 2021.
The company’s cost of sales more than tripled year-over-year to $1 billion in 2021.
Elsewhere in the folder (which you can read in full here), TikTok reveals that its advertising activity in Europe generated $802.3 million in 2021, against $152.4 million the previous year (see below).
TikTok notes in the filing that “a“advertising is a major source of revenue” for its platform and that the company is “constantly improving its operations and service model to ensure that we provide high quality service and solutions to our advertisers”.
The ByteDanceThe company-owned platform says it has increased the number of employees in its sales and accounting teams.
TikTok notes in its business risk section that the platform faces competition from other companies “that operate content-based social platforms and businesses who sell advertising to businesses seeking to reach consumerss”.
He adds: W.e must continue to innovate and provide useful services to users to stay competitive.
The platform’s livestreaming activity in Europe, meanwhile, generated $151 million in 2021, against $16.6 million in 2020.
The geographic breakdown of TikTok’s European business revenue reveals that the European Union accounted for $532 million in 2021 (see above), against $114 million in 2020.
The UK represented $279 millionversus $52 million in 2020, while the geomarkets listed by TIkTik as “Other” generated markets generated $179 million in 2021 compared to $5.7 million in 2020.
Other business risks TikTok has listed include the size of its user base.
The company states in the filing that “tThe size of TikTok’s user base and level of enotmanagement are crucial to our business, whI continue to be largely determined by our ability to retain our existing users, keep them engaged and acquire new users profitably and our ability to attract, cultivate and retain content creators to contribute content”.
ICT Tac revealed as of September 2021, it has over 1 billion monthly active users (MAUs) worldwide.The music industry around the world