Reddit Data Licensing Revenue Grows 24% to $43 Million

The Motley Fool··US·Read original
2▲2 ▼0Impact / 5
Summary · why it matters

Reddit's data licensing revenue grew 24% year over year to $43 million in the second quarter, with OpenAI and Alphabet's Google as its two biggest buyers. The licensing business sits inside other revenue and accounts for only 5% of Reddit's $805 million in total second-quarter revenue. Advertising remains the company's fastest-growing and biggest long-term opportunity, with ad revenue climbing 64% year over year to $762 million. Reddit's weekly active users rose 24% to 514 million, while daily active users increased 18% to 130 million. Management is focused on converting weekly users into daily users to drive more ad impressions, as data licensing remains a newer revenue stream with limited history.

Impact on assets 3

Artificial Intelligence▲ · 2 stocks
Alphabet Inc Class C
GOOG
▲ PositiveDemandrelevance

Google is one of Reddit's two biggest data licensing buyers, indicating demand for its data.

Communication Services▲ · 1 stocks
Reddit, Inc.
RDDT
▲ PositiveDemandrelevance

Reddit's data licensing revenue grew 24% and ad revenue surged 64%, showing strong demand.

Off-coverage companies 1

OpenAIPrivate▲ Positive
Demandrelevance

OpenAI is one of Reddit's two biggest data licensing buyers, indicating demand for its data.

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