The social media platform Reddit has successfully carved out a niche for itself in the market dominated by tech giants. According to the numbers presented by NoKyc.com, Reddit is expected to cross $1 billion in annual revenue for the first time in 2024. Estimates predict that Reddit’s yearly revenue will touch $1.04 billion this year.
Annual Revenue set to increase by 28% in 2024
2024 is shaping up to be a significant year for Reddit. The social media company is not only launching an IPO this year but it is also expected to reach a billion dollars in annual revenue for the first time.
Reddit reported annual revenue of over $804 million in 2023. As per the estimates from data firm Statista, Reddit’s annual revenue will increase by over $236m to reach $1.04 billion in 2024. This change in revenue would indicate an increase of a massive 28% on a year-on-year basis.
The majority of Reddit’s revenue comes from ads. According to Statista, ads are expected to contribute $1.01 billion in revenue in 2024. Thus, ads are expected to make over 97% of the entire revenue this year. Reddit is expected to earn a mere $8.04 million from its API in 2024. The company started monetizing its API in 2023 only, and the API revenue is expected to increase steadily in the coming years. Furthermore, Reddit is also expected to earn a further 7.17 million from premium accounts.
Reddit started as an online forum in 2005 and has grown into one of the most popular social sites in recent years. The company had plans to launch its IPO in the opening months of 2022. However, those plans were scrapped due to a downturn in digital ad revenues during the time. As things stand, the company has renewed its effort for an IPO by filing a public S-1 in February 2024, and it is looking at a valuation of at least $5 billion.
