After its IPO in March, Reddit published its first quarterly results as a publicly traded company yesterday. Apart from costs connected to its stock exchange listing leading to a substantial net loss, the social media platform delivered a solid performance across the board, especially compared to the same period the year prior. The company increased revenue by 48 percent to $243 million and daily active users by 37 percent to 83 million, while average revenue per user rose to $2.9 from $2.7 between January and March 2023. Regarding the location of regular Reddit users, countries with English as their main language stand out the most.
According to Statista's Consumer Insights, 16 percent of Australian and Canadian respondents claim to use the website or corresponding app regularly. The United States, the United Kingdom, New Zealand and Ireland also make the list of countries with the highest share of regular Reddit users among 38 countries surveyed. Apart from these countries, the social media platform is popular in India, with 13 percent of survey participants saying they regularly scroll through the discussions on the site. The three remaining spots are taken up by the Northern European countries Finland, Norway and Denmark, where more than a tenth of the social media populace identifies as frequent Reddit users.
Even though the company performed well across many of the most important financial metrics, the last years have been marred by controversy surrounding the platform. For example, in 2023, the company announced it would start charging substantial fees for access to its API, which would render obsolete many third-party applications. This led to many forum admins closing down popular discussion boards, so-called Subreddits, or labeling them not safe for work to impact the bottom line of the company.
