Reddit Releases Daily User Numbers For the First Time

Over 50 Million Users Per Day

October was a big month for Reddit. For the first time, the message board company disclosed its daily user count, the metric many social media platforms use to give investors and advertisers information about their audiences. Reddit says the platform averaged about 52 million active users per day this past October. That number represents a 44% increase from October 2019.

The company’s CEO, Jen Wong, said Reddit shared the daily user metric for the first time in an effort to be “more in-line with industry reporting.” For context, Reddit’s user number reflects one third of the daily users active on Twitter (TWTR), and an even smaller fraction of the audience on Facebook (FB), which averaged 1.82 billion daily active users. “We’re focused on daily usership and increasing this number as we continue to grow our community and scale our advertising business,” Wong added.

Announcement Aimed At Advertisers

After a tumultuous year of ad spending, Reddit appears to be positioning itself for more advertising growth in 2021. During the first quarter of the year, Reddit’s ad revenue growth was up 40% on an annual basis, but that fell to 27% in the second quarter when the coronavirus pandemic forced companies to conserve cash. According to Wong, advertising revenue has had a resurgence in the third quarter, with 83% year-over-year growth.

Part of Reddit’s advertising strategy involves expanding into international markets. This September, Reddit announced it is opening a new office in London. The company also plans to have multiple offices in Europe, the Middle East, and Africa. Before the end of this year, Reddit aims to have 300 people in its international salesforce.

The Future of Reddit

Reddit was founded in 2005, so it’s not quite as “shiny” as newer platforms like Snapchat (SNAP) and TikTok. Wong acknowledges Reddit’s age and says part of her strategy is to show advertisers that Reddit has an important place in the future of the internet.

Ad-buyers say an increasing number of their clients are purchasing space on Reddit and that number is likely to grow. Reddit’s leadership believes that the company’s mission of helping people find community will help remain popular for its existing audience and aid its goals of gaining more users over time.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS120203