The number of daily active users of discussion platform Reddit has increased over the past quarter; increased considerably, by 47 percent to 97.2 million. Turnover also increased sharply, by 68 percent to $348 million. Net profit was 28.9 million against a loss of 7.4 million a year earlier.
Reddit generated almost all of its revenue from advertising. Yet there were also other incomes that increased by 547 percent (pdf).
Analysts like Reddit’s stock because of Reddit’s new advertising products, such as dynamic product ads, and recent partnerships with major sports leagues, including the NFL. These developments are expected to greatly improve the platform’s advertising revenues. B.Riley and Deutsche Bank have both raised their price targets for the company.
Trust is further bolstered by the company’s strategic deals with Google and Open AI for language model training. It is expected that Reddit will enter into similar contracts, which could provide additional revenue streams.
For the fourth quarter, Reddit expects $385 to $400 million.
Source: www.emerce.nl
