ByteDance's Overseas Business Grew by Nearly 50% in 2025: TikTok Shop Becomes Core Engine, Overall Net Profit Drops Over 70%

ByteDance's overseas business achieved a high-speed growth of nearly 50% in 2025, but the company's overall annual net profit dropped by more than 70% year-on-year, showing a development trend of "strong overseas performance and weak overall performance".

On April 20, according to people familiar with the matter, ByteDance's overseas business maintained a strong growth momentum in 2025, with a year-on-year increase of nearly 50%, significantly higher than the domestic business growth rate of about 20%; the proportion of overseas revenue increased from 25% in 2024 to more than 30%, reaching a record high.

Among them, the annual Gross Merchandise Volume (GMV) of TikTok Shop increased by nearly 70% year-on-year, becoming the core driving force for the growth of ByteDance's overseas business. At the same time, it also helped TikTok achieve substantial profits in 2025, serving as an important profit support for the overseas business.

It is worth noting that while the overseas business performed brightly and achieved high-speed growth, ByteDance's overall net profit in 2025 dropped by more than 70% year-on-year. It is understood that the main reason for the profit decline is that the company significantly increased investment in AI computing power procurement, model R&D, and infrastructure construction in the third and fourth quarters of last year, and the concentrated early investment led to short-term profit pressure.

Industry insiders said that without the impact of geopolitical factors, the revenue scale of ByteDance's overseas business would most likely have exceeded that of the domestic business, and there is still great room for releasing the growth potential of the overseas market.

It is reported that the number of active consumers of TikTok Shop has reached 400 million, and the annual GMV in 2025 is approaching the 100 billion US dollar mark, with a rapid business development momentum. At present, TikTok Shop has formed a pattern of synchronous high-speed growth in multiple regions, with outstanding performance in various markets.

Specifically, in 2025, sales in the U.S. market increased by 108% year-on-year, and the growth rates of major European markets all exceeded 100%; in the Southeast Asian market, TikTok Shop ranks second in the industry, closely following Shopee; the newly developed markets performed particularly brightly - the Brazilian market's GMV increased by about 25 times just three months after its launch, and the Japanese market's GMV increased by about 20 times four months after its launch. Driven by the "Black Friday" shopping season, TikTok Shop's GMV exceeded 25 billion US dollars in the fourth quarter of last year, and its monthly GMV in overseas markets even surpassed Shopee in December, with its industry influence and market position continuing to improve.

However, behind the high-speed growth, TikTok Shop is also facing increasingly fierce external market competition. Amazon launched the low-cost discount mall Amazon Haul, directly competing with TikTok Shop with products under 20 US dollars; Shopee increased its investment in live streaming e-commerce, and at the same time cooperated with YouTube to expand short video shopping scenarios, forming a direct confrontation with TikTok Shop in core markets such as Southeast Asia.

At the same time, regulatory pressure cannot be ignored. The European Union plans to impose additional fees on low-value packages to further strengthen compliance supervision in the e-commerce field; some emerging markets are worried about foreign-funded e-commerce platforms dominating the local market, and the relevant regulatory policies are showing a tightening trend. These factors have brought certain uncertainties to the further expansion of TikTok Shop.

Risk Warning and Disclaimer

The market is risky, and investment needs to be cautious. This article is only an analysis of industry trends and does not constitute any personal investment advice. It also does not take into account the specific investment objectives, financial status or needs of individual users. Users should combine their own actual situation to carefully judge whether any opinions, views or conclusions in this article are in line with their specific situation. Investment made based on this article is at the user's own risk.