Reddit is a social media platform in its essence, and social media platforms have a business model just like any other business.. So Reddit earns through advertisement & subscriptioin services.
It was estimated that Reddit will generate an average revenue of $1.02 per user in 2023, which represents a 41.66% increase compared to the previous year.
Currently, Reddit is owned by Advance Publications, the same company that acquired major shares of the social media platform in 2017.
Reddit has more than 400 million active monthly users and about 50 million daily active users.
Reddit is by far one of the most active platforms. This reflects on their valuation as they were valued at $10 billion in 2021.
As of the latest published numbers in 2021, Reddit’s revenue was at $350 million annually. However, this is their gross revenue without removing the costs and taxes.