In 2024, Reddit is forecasted to surpass one billion U.S. dollars in revenues from its online advertising business. This represents an increase of almost 30 percent year-over-year, as in 2023 Reddit reported it generated over 788 million U.S. dollars in advertising revenue. Funded in 2005, news aggregator and discussion website Reddit is a traffic powerhouse, as well as one of the most popular social media platforms for global users. In recent years, Reddit has sought to help advertisers capitalize more on the platform's high engagement by creating an in-house advertising agency called KarmaLab, as well as by entering into a partnership with global PR and marketing leader WPP. Reddit advertising revenues are estimated to reach one billion U.S. dollars in 2026, proven that the platform can grow its audience among mainstream social media users and solidify its presence among advertisers and media conglomerates.

In the first quarter of 2025, Reddit reported having generated roughly *** million U.S. dollars in ad revenue. A year earlier, the revenue stood at *** million dollars, which signifies an annual growth rate over approximately ** percent.

According to data estimated in September 2021, Reddit annual online advertising revenues for the entire year amounted to approximately *** million U.S. dollars. This would represent an increase of approximately ** percent compared to the previous year when advertising revenues were estimated to amount to ***** million U.S. dollars. Reddit advertising revenues are forecasted to exceed *** million U.S. dollars by 2023.

In fiscal year 2024, Reddit's revenue by segment (products & services) are as follows: Advertising: $1.19 B, Other Revenue: $114.75 M.

In 2024, the advertising revenues generated by Reddit Inc. amounted to approximately 1.19 billion U.S. dollars. In 2024, Reddit advertising revenues made up approximately 91 percent of the company's revenues. In February 2024, industry sources reported that Reddit was entering a deal to license its content to a major AI company for 60 million U.S. dollars - allowing the platform to capitalize its user-generated content and possibly add a new revenue segment in the next years.

In 2024, Reddit spent over 350 million U.S. dollars on sales and marketing operations, up from 230 million in the previous year. Overall, the annual revenue generated by Reddit in 2024 amounted to 1.3 billion U.S. dollars. In February 2024, Reddit Inc. presented its registration statement in preparation of its entrance in the public market.

Reddit generates the majority of its revenues from its online advertising business, while premium subscriptions to the platform were estimated to generate less than 10 million U.S dollars in 2023. The decrease in premium revenues was estimated to be driven by the depreciation and deletion of Reddit Coins. The platform currency used to buy awards to reward other Redditors' comments and posts was discontinued on September 12, 2023. In April 2023, Reddit announced it was monetizing its API access, with small client apps and AI giants being prompted to pay for accessing Reddit's API, thus adding a new revenue stream to its business model.

In 2025, Mercado Libre was expected to be the company with fastest-growing digital advertising revenues worldwide, with a projected annual growth rate of 40 percent. Reddit ranked second, with 33 percent. Among the 10 companies presented, four are not U.S.-based: Mercado Libre (Uruguay), Meituan and Kuaishou (China), as well as Spotify (Sweden).

As of February 2026, ******* was the most popular community on the platform, with approximately ** million subscribers. Subreddit *********** ranked second, with approximately ** million registered Reddit users subscribing to the community. Subreddits are thematic communities in which registered users can publish posts and comment on other users' posted content. Users receive awards and likes (called 'upvotes') for notable or popular comments and posts. Reddit IPO: how does Reddit make money? Launched in 2005, Reddit is the self-proclaimed “front page of the internet” and one of the largest social forums available to global users. In 2023, the platform generated over ** percent of its revenues via online advertising. In April 2023, the company announced it was monetizing third-party access to its API, thus creating a new revenue stream. After the announcement, Reddit did not have to wait too long to attract AI-based companies in need of training their artificial intelligence models. At the beginning of 2024, it was reported that Reddit had struck a 60-million-dollar deal with Google to license its large human interaction repository. Despite experiencing almost ** million U.S. dollars in net losses in 2023, Reddit decided to enter the public market on March **, 2024, at approximately ** U.S. dollars per share. Social media IPOs The largest social media IPO recorded in the last 15 years was Facebook, valued at over *** billion U.S. dollars upon its entrance into the public U.S. market in 2012. Despite the growth recorded by digital businesses in the first years of the COVID-19 pandemic, the social media market appeared to hit a standstill between 2020 and 2023, with large social media companies achieving lower valuations than expected. During this time, the digital environment witnessed smaller social media companies seeking IPOs: in September 2022, social video and streaming platform Rumble went public via a SPAC merger, with a valuation of only *** billion U.S. dollars. In September 2023, social video app Triller filed its S-1, indicating a possible direct listing.Reddit’s 2024 IPO might shake up the market and reignite the IPO trend for social media companies. On March 26, 2024, the micro-blogging social media app Truth Social went public via SPAC merger. The app, which saw less than *** thousand downloads in February 2024, was funded by former U.S. president Donald Trump.

Reddit gab im Jahr 2024 über *** Millionen US-Dollar für den Bereich Sales und Marketing aus. Im Vorjahr lagen die Ausgaben des US-amerikanischen Unternehmens noch rund *** Millionen US-Dollar unter diesem Wert.

The largest social media IPO seen in the last 15 years was Facebook, which went public in May 2012 with a valuation of 104 billion U.S. dollars. Snapchat ranked second, with a valuation of 24 billion U.S. dollars in March 2017. Twitter – later known as X after its 2023 acquisition and subsequent delisting – went public in with a valuation of 18 billion U.S. dollars. Former U.S president Trump's social media app Truth Social went public on March 26, 2024, after merging with Digital World Acquisition Corp.

Digital IPOs in the U.S. The year 2021 was characterized by the highest number of IPOs recorded in the U.S. since 2000, with over a thousand companies entering the public market. During the first years of the COVD-19 pandemic, the digital and tech sectors enjoyed stellar development thanks to the increase in usage and inflated adoption trends of digital solutions among global users. In comparison, 2022 was characterized by an unusually quiet public market. Snap Inc and Meta, as well as other social media platforms, reported a loss in expected revenue driven by a slowing advertising spending trend.

While social video and streaming platform Rumble filed to go public via SPAC merger in September 2022, market volatility dragged IPO plans for others. At the end of 2023, the market appeared to be in recovery for digital companies. Fast-fashion brand Shein entered the U.S. public market in September, followed by Instacart in November.

Reddit’s IPO Reddit's entrance into the public market is expected to be the largest social media IPO since 2019, when Pinterest became a public company with a valuation of 10 billion U.S. dollars. Reddit, which is expected to go public in March 2024, is reportedly seeking a valuation of 6.5 million U.S. dollars. The company had previously reached a valuation of 10 billion U.S. dollars, after securing 410 million U.S. dollars in its Series F funding in August 2021. In February 2024, Reddit gave potential investors a peek into its financials, by releasing the company’s S1 registration statement: the company was not yet profitable in 2023, with a negative EBITDA of 70 billion U.S. dollars. Despite not having released a planned price for its stocks, Reddit invited some of its users to pre-register and grab the possibility of buying into Reddit.