Reddit, in its first quarterly performance update as a publicly listed company, reported a significant rise in daily active users and a 48% year-over-year increase in revenue. The platform now has an "all-time high" of 82.7 million daily actives, a 37% increase year-over-year. However, this figure is likely an all-time high based on the period that Reddit has been reporting daily active users as a stat. In 2019, Reddit reported 430 million monthly actives, which was its actual all-time high in usage.
From 2020 onward, Reddit switched to sharing daily active user counts after implementing updates to improve its business prospects, including significant rule changes to crack down on controversial elements. Reddit also reported "record traffic" in Q1 and growth in both the U.S. and international markets. The platform's international growth remains a top priority, aided by translation tools that make the platform more accessible.
In terms of revenue, Reddit earned $243 million for the period, with ads revenue up 39% year-over-year. However, costs increased due to an increase in stock-based compensation and related taxes as a result of its IPO, resulting in a $575 million loss. Despite this, Reddit is adding more ad options and becoming an important platform for genuine product insights, which could drive more value for brands. The platform aims to attract more users and become a significant player in the broader social media sphere.
