TikTok has reported its financial results for its European and international business for the fiscal year 2022, which ended on December 31. It reveals a remarkable turnover of $2.618 billion over the 12-month period. This figure represents an impressive YoY growth of 164.3%, significantly up from the USD $990.46 million reported in 2021.
In this financial disclosure, TikTok reports an annual operating loss of $512 million for 2022. However, this marks an improvement compared to the $895 million operating loss posted in the prior year. The operating margin has also substantially improved, shifting from a negative margin of 90.4% in the prior year to a negative margin of 19.6% in 2022.
TikTok attributes this improved performance to factors such as increased revenue driven by user base growth and cost efficiencies achieved throughout the year. The company reported in February that it had accumulated over 150 million users in Europe. To support its continued growth, TikTok increased its average monthly number of employees across the Group from 4,396 in 2021 to 7,009 in 2022.
Additionally, TikTok’s European and international businesses combined generated $1.652 billion in advertising revenue in 2022, more than double the $802.3 million generated in the previous year. The platform’s live-streaming revenues across its subsidiaries reached $790.1 million in 2022, a substantial increase from $151.3 million in 2021.
Breaking down the geographical numbers, TikTok generated $565.3 million in the UK, $1.485 billion in the European Union, $218 million in Latin America (mainly from Mexico and Brazil), and $348.8 million in the ‘Rest of World’ market segment for 2022.
In the risk section of the filing, TikTok acknowledges the evolving regulatory landscape it operates in and the importance of retaining and attracting users and content creators. The company also highlights the competitive landscape it faces and the need to continue innovating and providing valuable services to remain competitive in the market.