Reddit Announces Its First Quarterly Earnings Report For 2024 With Solid Increase In Daily Active Users And 48% Rise In YoY Revenue

Social media giant Reddit has just rolled out its earnings report for Q1 of 2024 and it’s safe to say the company is on the right track in terms of solid performance.

As per the stats published, Reddit experienced a rise in daily active users while revenue rose by 48% YoY.

The fact that the firm is experiencing an all-time high in terms of its user base which has grown by 37% when compared to the previous year is serious news.

A chart depicting the company’s success displayed the growth be a steady feature and it was clear how it reflected the maximal efforts people were making to ensure great engagement.

With a 37% increase in user base compared to last year, Reddit celebrates its all-time high in user engagement.

While it’s still got a long way to go and hopes to better performance with time, it’s a brilliant and solid start by all means.

To be more accurate on this front, it’s probably one of the highest stats it’s seen in terms of users utilizing the platform each day.

The last time we heard about all of this was in 2019 when Reddit celebrated a milestone of hitting 430 million users each month. This was dubbed to be its highest usage ever and when compared to other averages seen on social media, it suggested how the app once saw close to 200 million daily active users.

But with time, we didn’t see any major change after that and the platform underwent a range of updates created to enhance several prospects on the business front. This entailed a lot of serious changes to rules that would crack down against some controversial features.

This is why the company chose to alter to display of daily active user stats as a replacement for better transparency of its performance. Hence, when we see this current period, we can celebrate it as a huge high but we don’t think the app is only capable of just this. There’s a lot more to come soon.

The firm explained how it was seeing record traffic during the first quarter and also seeing serious growth in both the global and local markets. Moreover, Reddit added how worldwide growth has been a goal since day one.

This is why it’s focusing on making translation tools a priority for the app so that more people can gain access to it from all over the world. As far as revenue is concerned, Reddit managed to bring in a staggering $243 million for this period as revenue for ads rose 39%.

The results may appear great but the app is also concerned about how costs continue to be on the rise during this time, thanks to a rise in compensation related to stocks. And then taxes linked to IPO are never a great thing so from the looks of it, impacts are serious and a lot must be considered to ensure revenue remains high and expenses of the platform are low.

For now, the app continues with operations which stand at $575 million loss and that’s not the way any leading platform would wish to open. Nevertheless, it’s not easy to see what the app is bringing to the table as a lot of restructuring has been carried out with time.

The goal is to expand on the revenue potential and it’s not too transparent about that in terms of what advertisers are expecting to ensure the best results appear on the app.

But we can confirm right now that Reddit is giving rise to greater potential in terms of advertising. It’s slowly but surely turning into an app that gives users great and genuine insights regarding products. And what more can a brand ask for, right?

However, we could be speaking too soon as the company is in its early stage of developing this and that is why the results are reflecting just that.

The real question of users' minds is if the app can bring in more users than what it's experiencing right now and transform its platform into something bigger and better on the social media front.

Read next: OpenAI Makes New Product Announcements Including New Media Manager And Deepfake Image Detector
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