ByteDance, the parent company of TikTok and its Chinese counterpart Douyin, demonstrated its dominance in China’s internet landscape last year, solidifying its position alongside industry giants Tencent and Alibaba. While Tencent and Alibaba grappled with stagnant growth amid economic uncertainty and cautious consumer sentiment, ByteDance soared to new heights.

In the domestic market, Douyin is undergoing a transformation into a comprehensive platform reminiscent of Tencent’s WeChat. Its expanded features now encroach upon Alibaba’s e-commerce territory and challenge Meituan in the realm of food delivery services. Despite its remarkable performance, ByteDance announced a management overhaul of its China operations in February, with Kelly Zhang stepping down from the CEO position without a designated successor.

In 2023, ByteDance witnessed a staggering 60% surge in profit, outpacing its online peers Tencent and Alibaba Group, showcasing its resilience in the face of economic headwinds. According to sources familiar with the matter, earnings before interest, tax, depreciation, and amortization (EBITDA) skyrocketed to over US$40 billion from approximately US$25 billion in 2022. Moreover, ByteDance’s sales soared to nearly US$120 billion from US$80 billion the previous year.

This remarkable performance marks the first instance where ByteDance has surpassed archrival Tencent in both revenue and profit. By leveraging its immensely popular short-video platforms, ByteDance expanded into international e-commerce and maintained its global appeal. While ByteDance’s internal figures have not undergone independent auditing, they indicate that the social media powerhouse has emerged as one of the world’s fastest-growing tech giants in 2023.