Reddit - statistics & facts
Reddit is set to enter the public market in the biggest social media IPO since 2019. The company released its S-1 registration statement and is anticipated to go public on the New York stock exchange. With an annual revenue of 804 million U.S. dollars in 2023, and a projected valuation of 6.5 billion U.S. dollars, Reddit qualifies within the lower end of the social media businesses.
The company chose to report on its average revenues per user (ARPU) based on daily engagement. As of the fourth quarter of 2023, Reddit’s ARPU was of 3.42 U.S. dollars, a slight decrease from the 3.49 U.S dollars the social aggregator saw at the end of 2022.
Monetizing existing assets: Reddit’s API access
Reddit is an advertising-based business. In 2023, the company reported that over 90 percent of its revenues for the year came from online advertising: 788.8 million U.S. dollars, against 15.25 million U.S. dollars generated in its other revenue segment, which includes direct monetization with user subscriptions. In 2023, Reddit took its most promising step to diversify the company’s revenue stream by monetizing access to its application programming interface (API). Third party companies have been able to access Reddit’s data for years, leading to the flourishing of Reddit client apps. Under the new content licensing plan, Reddit hopes to lure large AI and machine learning players to train their models on Reddit’s data. Google was one of the first to jump on the possibility to access Reddit’s human content repository for a price: in February 2024, industry sources reported Reddit had struck a licensing deal with the search engine giant for 60 million U.S. dollars.S-1 snapshot: Company financials and reported engagement
Reddit reported a net loss of 91 million U.S. dollars in 2023. While this represents a decrease from the 159 million U.S. dollars in losses recorded in 2022, Reddit is not among the profitable social media businesses quite yet. The company’s earnings before taxes, depreciation and amortization (EBDTA) amounted to a negative 70 million U.S dollars, a decrease of 36 percent over the previous years’ loss of 108.4 million U.S. dollars.The company chose to report on its average revenues per user (ARPU) based on daily engagement. As of the fourth quarter of 2023, Reddit’s ARPU was of 3.42 U.S. dollars, a slight decrease from the 3.49 U.S dollars the social aggregator saw at the end of 2022.
