Thursday, March 28, 2024
HomeWorld NewsUnited States NewsReddit users are the least valuable of any social network

Reddit users are the least valuable of any social network

104127709 GettyImages

Reddit’s latest funding round values its users at a lower price than any other social network.

The company announced Monday it had raised $300 million in its Series D investment round at a valuation of $3 billion. CNBC previously reported the company’s annual revenue topped $100 million, according to sources familiar with the matter, and at 330 million monthly active users (MAUs), this would make Reddit’s average revenue per user (ARPU) about $0.30.

Reddit did not immediately respond to a request for comment regarding its latest revenue details.

That estimate would make Reddit’s ARPU significantly lower than other social networks, even those with similar MAUs. Twitter, for example, reported 321 MAUs for its latest quarterly report, and with annual revenue of about $3.04 billion in 2018, that would make its ARPU about $9.48.

Facebook reported 2.32 billion MAUs in its latest report and ARPU of $7.37. Snap does not report global MAUs, but reported $2.09 ARPU in its latest quarterly report.

Pinterest, which has yet to go public but is preparing for an IPO this year, says on its website it has 250 million monthly users. Pinterest declined to comment on their revenue, but a September article in The New York Times said the company was on track to top $700 million in revenue for 2018. That would bring its ARPU to about $2.80.

So, in descending order:

  • Twitter ARPU: ~$9.48
  • Facebook: $7.37
  • Pinterest: ~$2.80
  • Snap: $2.09
  • Reddit: ~$0.30

While Reddit’s value per user is much lower than its peers, it is betting its access to a valuable demographic will appeal to advertisers and potentially even draw their dollars from larger rivals like Facebook and Google. The company said half of its MAUs are between the ages of 18 and 24.

“When we are talking about competing for ad dollars, of course we are talking about Facebook and Google, who take up the vast majority of ad spend,” said Reddit CEO Steve Huffman in an interview with CNBC. “We are competing with anybody, or anywhere people spend their free time.”

More Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

5 Days Trending

We use cookies to ensure that we give you the best experience on our website.