ByteDance Reports Significant Surge in International Revenue Amid Disheartening Net Profit Decline
In a striking revelation, ByteDance’s international revenue experienced a remarkable surge of nearly 50% in 2025, significantly eclipsing the approximately 20% growth in domestic earnings, as reported by 36Kr, citing informed sources.
Notably, the contribution of overseas operations to the company’s total revenue increased from 25% in 2024 to over 30%, marking an unprecedented high.
The predominant force behind this impressive expansion was TikTok’s burgeoning e-commerce segment.
Data indicates that the gross merchandise value (GMV) of TikTok Shop soared by nearly 70% year-on-year in 2025, playing a pivotal role in amplifying ByteDance’s overseas revenue.
This surge ultimately positioned TikTok to achieve a considerable profit for the year, although specific figures remain undisclosed.
Nonetheless, amidst this external revenue growth, ByteDance experienced a staggering decline in net profit, plummeting by more than 70% in 2025.
This downturn has been attributed to a dramatic uptick in artificial intelligence investments during the latter half of the year, sharply impacting the company’s net profit margin compared to the previous year.
Despite reaching out for commentary, 36Kr had not received a response from ByteDance representatives by the time of publication.
In the past year, ByteDance garnered attention not only for its operational strategies for TikTok in the US but also for two salient issues: the rapid expansion of its international e-commerce arena and escalated investments in artificial intelligence.
An earlier report from Jiemian News noted that TikTok Shop had amassed 400 million active users by 2025, with GMV nearing USD 100 billion. Research firm EchoTik revealed that TikTok Shop’s GMV for the third quarter of 2025 rivaled that of eBay.
Furthermore, Jiemian News reported that TikTok Shop’s GMV in international markets during December surpassed that of Shopee. Regionally, eMarketer found that TikTok Shop’s sales in the US skyrocketed by 108% in 2025.
- In Southeast Asia, TikTok Shop has emerged as the second-largest competitor, trailing only behind Shopee, as observed by research firm Momentum Works.
- New markets, including Latin America and Japan, were introduced to TikTok Shop in 2025, with Brazil witnessing a GMV surge of approximately 25 times in the first three months post-launch.
Regarding artificial intelligence investments, sources have informed 36Kr that ByteDance has informed shareholders of an expected increase in expenditures for technical resources in 2026.
Coupled with the impacts of a newly formed data security joint venture in the US, the company’s net profit margin is anticipated to remain under duress in the near future.
Preliminary reports have also suggested that ByteDance’s total capital expenditures are poised to rise again this year, with over half of the additional funds earmarked for infrastructure to meet the computing demands of training and inference for extensive models. ByteDance has refrained from commenting on this development.
Source link: Kr-asia.com.
