TikTok will capitalize on a year of scandals with a turnover increase of 300 PERCENT until the end of 2019
TikTok capitalizes a year of scandals and bad press with a 521 percent higher revenue from in-app purchases during Q4 2019
- Industry analysts say that TikTok sales in the fourth quarter of 2019 set a record
- According to an industry watcher, business income increased by 521 percent
- The Chinese-owned app generated an estimated $ 87 million in gross revenue
The popular TikTok video sharing app ended 2019 with the most profitable quarter in company history.
According to figures from Randy Nelson, an industry analyst at SensorTower, the head-making app generated more than $ 87 million in revenue from in-app purchases in the fourth quarter of 2019.
After splitting the revenues for the App Store and Google Play, which each amount to 30 percent, the company had an estimated net revenue of $ 62 million.
According to industry analyst SensorTower estimates, in the fourth quarter of 2019, TikTok generated a record high of $ 62 million in gross revenue in in-app purchases
Those amounts include every country in which the app is sold, except China.
Nelson told me TechCrunch via e-mail that counts as a 521 percent increase over TikTok’s fourth quarterly revenue in 2018.
Another industry analyst, Adam Blacker from Apptopia, shared a lower-quarterly graph for the company and estimated it generated just over $ 50 million in in-app purchases.
According to Blacker and Apptopia, this would have been an increase of 310 percent on an annual basis.
Even with Blacker’s smaller numbers, the company seemed to have had its biggest year ever in 2019, setting a new all-time record every quarter, while revenue for the year could be close to or above $ 100 million.
Another set of Apptopia’s revenue estimates suggested that TikTok earned slightly more than $ 50 million in revenue in the fourth quarter, but that would still be more than three times larger than 2018
Just two years after its launch, TikTok became the most downloaded app in the US in 2018 and it was downloaded more than 750 million times in 2019.
The app allows users to record and share short videos that are set to music.
The company sells advertisements that it displays to users, and it also sells in-app coins for users to share with each other as a rating for videos, and which can be purchases in packages that cost as much as $ 99.99.
Last week, the US military announced that the app would be banned on all government devices after fears that its Chinese parent company would use the app to collect data.
In October, Senators Chuck Schumer and Tom Cotton wrote a joint letter to Director of National Intelligence Joseph Maguire in which they warned that the app could be used “to support and collaborate with intelligence work managed by the Chinese Communist Party.”
In April, reports emerged that online predators targeted children from nine years of age with sexual messages.
WHAT IS TIKTOK?
TikTok is a Chinese social media app where users can stream live, create short videos and music videos and GIFs with numerous functions.
The slogan of TikTok is “Let every second count.”
It was the most downloaded app in the US in 2018 and the world’s fourth most downloaded app in 2018, before Instagram and Snapchat.
TikTok is known in China as Douyin, where it was launched in 2016 and then made more widely available worldwide in 2017.
Douyin is still the version of the app used in China and can be downloaded separately to TikTok.
Last year the app was merged with the popular music video lip synchronizing app Musical.ly, also with its headquarters in China.
Most children use the app to synchronize themselves with lip synchronization to map hits.
It offers users a range of colorful modification and editing tools, including overlapping music, sound, animated stickers, filters, and augmented reality (AR) for creating short videos.
The Beijing-based social network has more than 500 million active users and the company is now worth more than $ 75 billion (£ 58 billion).