TikTok’s sales volume in Europe grew 545% to $170.8 million last year as advertisers increased their spend on the platform, according to the company’s UK registry filing.
The record shows how the company has invested heavily in expanding its European business as it looks to take on competitors such as Facebook, Instagram, Snapchat and YouTube.
Losses at the Chinese-owned company rose from $118.7 million in 2019 to $644.3 million in 2020.
A company spokesman said: The results reflect an exciting period of growth for the business. We’ve seen a significant increase in revenue as our community grows, and we continue to invest aggressively in building a solid foundation for the platform’s long-term success.
One of Tik Tok’s biggest expenses was the staff. The company’s number of employees in Europe rose by more than 1,000 people last year, from 208 in 2019 to 1,294 in 2020.
The company declined to comment when asked how many employees it has in other parts of the world. But the company said in July that it wanted to increase its workforce in the United States from 1,400 to 10,000.
In addition to employees, the company also spent $344.9 million on selling and marketing expenses in 2020, up from $110.3 million in 2019, according to the filing.
The platform has boomed in popularity in the past three years and announced earlier this month that it has 1 billion monthly active users on its platform, up 45 percent from July 2020.
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Tik Tok has invested heavily in expanding its European business
The company said it had about 55 million global users by January 2018. That number grew to more than 271 million by December 2018 and 507 million by December 2019. The company reported nearly 700 million monthly active users last summer.
But TikTok understands that growth may not continue. The company, which is owned by China’s ByteDance, indicated in its business risk section that it faces competition from internet companies that run content-based social platforms. Facebook and Snapchat are among its biggest competitors.
The size of these social media companies has brought them under increasing levels of scrutiny by regulators in recent years.
Under the compliance risk section of the filing, TikTok indicated that it is subject to a range of new and existing laws in a regulatory landscape that can be changed.
The company faced a number of setbacks. Including a possible US ban after the previous Trump administration deemed data storage and its security a national security risk.
Its US assets were to be sold to a US company if it wanted to continue operating on a large scale. With Oracle later called the Trusted Technology Provider.
However, President Joe Biden’s rise to the White House has allowed the company to continue business as usual. In February, the Wall Street Journal reported that the Oracle deal had been indefinitely postponed.
This summer, Biden also signed an executive order setting out criteria for the government to assess application risks associated with foreign adversaries.
The huge increase in the number of European employees comes even though some people have turned down jobs at the company. This is due to fears that it has the so-called 996 culture practiced by some companies in China. This practice is to work from 9 am to 9 pm 6 days a week.