TikTok's growth is fueled by the EU, despite the uncertainty in the U.S.

In 2024, TikTok's European, U.K., and Latin American revenues reached a staggering $6.3 billion, marking a significant 38% increase from the previous year. This surge in revenue has been driven by the platform's growing popularity, with over 30 million active users in the U.K. alone.

The U.K. remains a significant base for TikTok's European operations, and the company's expansion into e-commerce has been particularly successful in the region. TikTok has become one of the country's top beauty retailers, and 1.5 million businesses are leveraging its platform.

However, TikTok's growth in Europe is not without challenges. The company has faced regulatory pressure, with investigations into its practices ongoing in multiple jurisdictions, including Ireland, France, Spain, and the U.K. In response, TikTok launched Project Clover, a major initiative to safeguard European user data. Data centers in Norway and Finland are central to this project, and TikTok has reserved $1 billion for potential fines from European authorities under the EU's Digital Services Act and related probes.

One of the key aspects of Project Clover is TikTok's move towards AI-driven content moderation. This shift has led to a reduction in human trust-and-safety teams across London, Berlin, and Asia. However, this move has sparked union resistance, with concerns about job losses and the effectiveness of AI in moderating content.

Despite these challenges, TikTok's performance in Europe suggests that the platform is adapting and diversifying effectively. Staff costs in Europe rose to $937 million in 2024, due to higher compensation and specialized hiring. Headcount in Europe fell by 6% in the same year.

The next phase will test whether TikTok's investment in local infrastructure, compliance measures, and e-commerce innovation can sustain growth against mounting political headwinds. The success of TikTok in the U.S. market, where the company is facing lawsuits, national security concerns, and a potential ban, has been uncertain. However, TikTok's European growth has offset this uncertainty, offering a glimmer of hope for the platform's future.

The pre-tax losses for TikTok in 2024 narrowed to $616 million, down from $1.47 billion in the previous year, suggesting a gradual improvement in the company's financial position. As TikTok continues to navigate the complex regulatory landscape in Europe, it will be interesting to see how it sustains its growth and adapts to the changing digital landscape.