Reddit's latest performance report for Q2 2024 reveals an impressive growth in user base and a significant revenue boost. 

Reddit’s growth in revenue

According to the report, Reddit saw a 54% increase in revenue, reaching $281.2 million. This growth rate more than doubles the company's revenue growth rate of 2023, with the company generating $183.1 million that year. 

Factors impacting Reddit’s ad revenue 

Reddit's ad revenue is rising due to improvements in its advertising products and a targeted focus on small to medium-sized businesses.

However, Reddit's non-ad revenue streams, which include new and diversified sources, grew by an impressive 690%, reaching $28.1 million. This indicates Reddit's successful efforts to monetize beyond traditional ad revenues, opening up new avenues for growth and profitability.

Reddit’s expansion in user base

The company also saw a notable increase in its user base, adding 8.5 million daily active users, now totaling 91.2 million. Additionally, Reddit's weekly user figure of 342.3 million illustrates a 57% year-over-year growth.

This expansion is not only visible in the U.S. but also balanced across other regions and markets. 

Reddit’s plan to introduce paywalls in subreddits

To further drive revenue growth, Reddit’s CEO Steve Huffman suggested the potential introduction of paywalls for select subreddits as reported by Mashable. 

According to him, “I think the existing, altruistic, free version of Reddit will continue to exist and grow and thrive just the way it has.” “But now we will unlock the door for new use cases, new types of subreddits that can be built that may have exclusive content or private areas, things of that nature,” he added.

Reddit’s plans to expand ad capabilities 

Reddit is also enhancing its advertising capabilities through acquisition, new features, and partnerships. Recently, the company acquired Memorable AI to improve its advertising offering and boost revenue. 

Previously, the company launched Lead Generation Ads to enable advertisers to connect better with users. The company is also looking to test AI summaries at the top of its search results.

In the past month, the has also company partnered with major U.S. sports leagues in a bid to boost its revenue streams and collaborated with companies including OpenAI and Google.