• by Colin Kirkland , October 30, 2024

In its third performance report since becoming a publicly listed company, Reddit grew its advertising revenue across the funnel, while also boosting its daily active users (DAUs) -- potentially elevating its status as a key promotional space in the competitive social media landscape.

In terms of users, Reddit added 6 million DAUs since Q2, reaching a total of 97 million DAUs in Q3 -- an increase of 47% year-over-year.

The company grew its user base in the US and in new regions, the latter of which it credits with the development of new machine translation tools, with plans to expand these tools to over 30 countries through 2025.

Reddit also says weekly active users averaged 365 million in the third quarter with an increase of 53% year-over-year. Total conversation page views in Q3 were over 90 billion and up over 40% from last year, showcasing strong engagement across the platform.

In terms of revenue, Reddit made over $348 million in Q3, marking an increase of 68% year-over-year as the company has attempted to attract more advertisers since its announcement to go public.

The company has attempted to create a safer space for ads by partnering with DoubleVerify and limiting moderators' control over subreddits.

With more security features in place, Reddit has attracted more ad dollars, as advertising revenue grew 56% year-over-year, amounting to $315 million.

The company says these increases were primarily driven by increases in impressions delivered from higher user growth, more efficient ad load, and the expansion of conversation placement ads.

The company also likened ad-revenue growth to its new conversation API or “CAPI” integration partnerships, with CAPI adoption growth of over 2x versus the previous quarter.

Performance revenue accounted for about 60% of total ad revenue, while business with SMBs grew over 80% year-over-year, with SMB revenue growing over 100% year-over-year.

The company says it is also making money by selling data to Google per a data-sharing deal, generating $33.2 million in “Other” revenue this quarter, marking an increase of 547% year-over-year. In addition to its deal with Google, Reddit signed a recent deal with media intelligence company Meltwater for data sharing as well.

Reddit is also trying to improve its search options for users both searching externally and internally, including users “looking for recommendations on what to buy, what to watch, or which products or services are the best.”