What drove Reddit's revenue growth in 2024?

Reddit's revenue growth in 2024 was driven by several key factors:

1. User Growth: Reddit experienced significant increases in both Daily Active Users (DAUs) and Weekly Active Uniques (WAUq). DAUs grew by 51% year-over-year to 91.2 million, and WAUq increased by 57% to 342.3 million. This substantial user growth laid the foundation for revenue expansion.
2. Advertising Monetization: With a larger user base, Reddit's advertising revenue surged. The company reported a 56% increase in ad revenue, reaching $315.1 million. This growth was attributed to improved user experience, better retention strategies, and enhanced content discovery mechanisms.
3. International Expansion: Reddit's efforts to expand internationally, particularly in markets such as France, India, the United Kingdom, and the Philippines, contributed to user growth and revenue increase. The company's plans to expand to additional countries, like Spain, Germany, Brazil, and Italy, are expected to unlock new user bases and advertising opportunities.
4. AI-Powered Features: Reddit's integration of AI-powered features, such as a new AI-powered search results page, is enhancing content discovery and user retention. The company's data licensing deals with Google and OpenAI are also boosting revenue.
5. Monetization Strategies: Reddit's monetization strategies, including data licensing and AI content licensing deals, are contributing to revenue growth. The company's content licensing deals with sports leagues are helping to attract more ad dollars.

In summary, Reddit's revenue growth in 2024 was driven by user growth, particularly in the areas of advertising and international expansion, and monetization strategies that leverage AI and data licensing.