Reddit Q3 Report: User and Revenue Growth, Expanding Reach

Reddit has released its third performance report as a publicly listed company, revealing solid growth in both user numbers and revenue for Q3. The platform's daily active uniques (DAUq) increased to 97.2 million, a rise of 6 million compared to Q2. This growth was driven by both U.S. and international markets, with Reddit crediting its efforts in developing translation tools for helping it expand into new regions.

More than half of the user growth in Q3 came from international traffic, as Reddit sees early momentum with its machine translation strategy across geographies. The platform has been expanding its post translation options to more languages throughout the year, enabling more people in various regions to engage with the app.

 

Revenue Growth and Advertising Opportunities

Despite its expanding global reach, Reddit remains heavily reliant on its U.S. users for revenue. This presents a significant opportunity for the platform to generate more income from other markets as it gains traction and presence in these regions.

In terms of revenue, Reddit brought in $348.4 million for the quarter, a substantial 68% increase year-over-year. This growth highlights the efforts Reddit has made to build its business and make its platform more advertiser-friendly. As more people seek authentic human insights to inform their purchase decisions, Reddit has become a key consideration for many marketers.

 

Increasing Relevance and Utility

Reddit notes that "Reddit" has been the sixth most Googled word in the U.S. in 2024 thus far, underscoring the value that people now see in Reddit content. This trend may also account for the variance in daily and weekly user numbers, as many people now add "Reddit" to their Google searches and visit the platform on a case-by-case basis, rather than logging in daily.

In addition to advertising revenue, Reddit is also generating income from data sales. As AI developers seek human input for their language models, Reddit's data is considered especially valuable due to its consumer insights. The platform generated $33.2 million in "Other" revenue in Q3, which includes data licensing revenue, marking an impressive 547% increase year-over-year.

 

Product Updates and Improvements

Reddit has introduced several product updates and improvements to enhance user experience and engagement. The revamped "Ask Me Anything" format has led to a fivefold increase in the number of AMAs created on the platform. Reddit is also focusing on improving its search options, both for users coming from external search engines and those searching directly within the app.

As Reddit continues to evolve its ad options in alignment with changing usage trends, it presents a growing opportunity for marketers to reach and engage with their target audiences on the platform.

 

Boost Your Reddit Presence with TopTierSMM

As Reddit's user base and advertising opportunities continue to grow, businesses can leverage the power of social media marketing (SMM) panels to enhance their presence on the platform. TopTierSMM is a trusted SMM panel that offers a wide range of services to help businesses increase their reach and engagement on Reddit.

By utilizing TopTierSMM's services, such as boosting upvotes, comments, and followers, businesses can maximize their visibility on Reddit and tap into the platform's valuable user insights. As Reddit's relevance and utility continue to rise, investing in an SMM panel can be an effective strategy to stay ahead of the competition and drive results on the platform.