TikTok revenues jumped 310% to over $50 million during the last quarter 2019, according to estimates by Apptopia published by TechCrunch.
Predictions of Q3 2019 revenues of the popular video app put in-app purchase earnings at around $20 million.
That marks a significant jump in revenues between quarters.
But the predictions differ between research companies. Sensor Tower, for example, suggests that TikTok revenues increased 521% during Q4 to a whopping $87 million.
In June, TikTok user spending reached $9 million, according to Sensor Tower.
So, how does the app generate such high revenues?
TikTok not only sells advertising, but the company also sells a virtual currency called “coins” to its users.
When a user buys coins they can leave a tip for their favourite video creators. 500 coins can be bought for $4.99, for example. In this way, creatives are rewarded by their fans directly on the platform.
Irrespective of the difference in estimates, the figures are impressive and show that the app has managed to rapidly grow.