TikTok’s EU enterprise grew by 477% in 2021 – with a $896m pre-tax loss

TikTok has filed the monetary outcomes for its European enterprise for FY 2021 (ending December 31).

The submitting, accessible publicly on the UK’s Corporations Home for TikTok Info Applied sciences UK Ltd, reveals turnover of USD $990.46 million within the 12 months.

That FY turnover determine represented development of 477% YoY, up from $171.62 million in 2020 (see beneath).

TikTok Info Applied sciences UK Ltd represents TikTok’s enterprise for customers within the EEA (EU nations plus Iceland, Liechtenstein and Norway), along with customers within the UK and Switzerland.

TikTok says that its turnover development in these areas in 2021 was “primarily pushed by the continued development” of its consumer base.

It additionally pinned this development on what it calls “enhanced monetisation instruments to enhance advertisers’ expertise”.

Nonetheless, throughout the submitting, TikTok reveals an annual working lack of $895.58 million, widening by 37% YoY in contrast with a $654.20 million loss in 2020 (see beneath).

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TikTok’s losses are primarily because of elevated staffing prices, with the platform’s month-to-month common quantity of workers in Europe growing from 1,302 in 2020 to 4,396 in 2021. 

The agency’s price of gross sales greater than tripled year-on-year to high $1 billion in 2021.

Elsewhere within the submitting (which you’ll learn in full right here), TikTok reveals that its advertisements enterprise in Europe generated $802.3 million in 2021, versus $152.4 million the prior yr (see beneath).

TikTok notes within the submitting that “advertising is a crucial income” for its platform and that the firm is “continually bettering its operations and repair mannequin to make sure we offer high-quality service and options to our advertisers”.

The ByteDance-owned platform says that it has boosted the variety of employees on its gross sales and accounts groups.

TikTok notes beneath its enterprise dangers part that the platform faces competitors from different firms “that function content-based social platforms and corporations that promote promoting to companies that want to attain shoppers”.

It provides: We have to proceed to innovate and present providers which are helpful to customers to stay aggressive.”

The platform’s live-streaming enterprise in Europe, in the meantime, generated $151 million in 2021, versus $16.6 million in 2020.

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Breaking TikTok European enterprise revenues down geographically reveals that the European Union accounted for $532 million in 2021 (see above), versus $114 million in 2020.

The UK accounted for $279 million, versus $52 million in 2020, whereas geographic markets listed by TIkTik as ‘Different’ generated markets generated $179 million in 2021 versus $5.7 million in 2020.

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Different enterprise dangers listed by TikTok embrace the dimensions of its consumer base.

The corporate states within the submitting that “the dimension of TikTok’s consumer base and the customers’ degree of engagement are essential to our enterprise, which proceed to be considerably decided by our means to retain our present customers, preserve them engaged and purchase new customers in a cost-efficient method and our means to draw, domesticate and retain content material creators to contribute content material”.

TikTok revealed in September 2021 that it had over 1 billion international Month-to-month Energetic Customers (MAUs).Music Enterprise Worldwide