Reddit has reported impressive results for Q2 this year, with revenue and user numbers both showing huge growth. The company’s revenue rose by 54% compared to the same period last year, reaching $281.2 million. This growth was matched by a 51% increase in Daily Active Uniques, with the total now up to 91.2 million users.
This might just mean that Reddit is growing in popularity for users and advertisers alike. This success is thanks to Steve Huffman, Reddit’s co-founder and CEO, who has constantly been improving the platform to user needs.
AI And Reddit
Reddit is also looking to integrate AI into the platform. One of the most anticipated changes is a new AI-powered search feature that will help users find content more easily. This tool is made to summarise and recommend posts, so its easier for users to discover new communities.
This comes after earlier this year, they announced a partnership with AI startup OpenAI to develop advanced language models. “Reddit has become one of the internet’s largest open archives of authentic, relevant, and always up to date human conversations about anything and everything. Including it in ChatGPT upholds our belief in a connected internet, helps people find more of what they’re looking for, and helps new audiences find community on Reddit,” Huffman said, after the announcement.
These AI changes are expected to roll out later this year. If successful, they could really change how people interact with Reddit.
Reddit And Paywalls
With Reddit growing, it is also thinking about new ways to bring in money. During a recent earnings call, Steve Huffman mentioned the idea of paywalled content. This would involve creating exclusive subreddits or private sections that users could pay to access.
This idea could open up new revenue opportunities for Reddit. Huffman reassured users that the current free version of Reddit will remain as it is, with the paywalled content being an additional option.
It’s still early days for this concept, but it shows that Reddit is willing to try new things to keep growing. Whether or not this idea takes off, its no doubt Reddit is finding monetisation strategies as they make their comeback.
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User Engagement On The Rise
Reddit’s efforts to improve its platform are paying off, with user engagement at an all-time high. Weekly active users jumped by 57% compared to last year, reaching 342 million. The United States saw particularly strong growth, with a 68% increase in weekly users.
The platform has been expanding its services to cater to non-English speaking users, adding new languages to its AI-powered translation tools as a way for Reddit to attract a more diverse global audience.
“We had a strong quarter across the board and more people are visiting Reddit than ever before,” Huffman shared. “Our work to improve the platform is driving results and we are well positioned to continue to grow and deliver on our long term mission.”
On the question of how Reddit will be bringing in users around the world who speak other languages, Huffman said on the call, “So one of the most exciting things we’re doing here is machine translation using large language models.
“So, we’ve built that we were doing this long test in French, in France, that went very well, so now, that’s now in GA, or general availability, which basically means the vast majority of users in France, speaking French, we can see the machine translated content.
“We call that the immersive experience, and now we’re moving on to other languages.”
