Reddit has released its second performance report since becoming a publicly traded company, showing steady growth in both user numbers and revenue during the second quarter.
Reddit is expanding in various markets and investing in new technology to enhance advertiser returns.
Regarding user growth, Reddit gained 8.5 million daily active users, reaching a total of 91.2 million. Notably, Reddit's growth is balanced between the U.S. and international markets. Unlike other social apps that primarily grow in developing regions, Reddit's expansion in both developed and developing regions is a positive indicator for its advertising potential.
Weekly average users hit 342.3 million in Q2, up 57% year-over-year, indicating Reddit's user base engages more broadly on a weekly basis than daily.
On the revenue front, Reddit earned $281.2 million in Q2, a 54% year-over-year increase, driven by improved ad products and a focus on small and medium-sized businesses (SMBs). Reddit's acquisition of Memorable AI aims to further enhance ad performance with generative AI tools.
Non-ad revenue streams contributed $28.1 million in Q2, up over 690% year-over-year. Reddit has been capitalizing on its data value, increasing API access prices and making data-sharing deals, including with Google. Reddit also restricted other search engines from indexing its content to protect its data.
Reddit's efforts to control its data usage and explore data licensing opportunities, including in the financial services industry, are already boosting revenue potential.
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