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Reddit Users Are the Least Valuable of Any Social Network (cnbc.com)

Posted by BeauHD on from the number-crunching dept.

Reddit's latest funding round values its users at a lower price than any other social network. "The company announced Monday it had raised $300 million in its Series D investment round at a valuation of $3 billion," reports CNBC. "CNBC previously reported the company's annual revenue topped $100 million, according to sources familiar with the matter, and at 330 million monthly active users (MAUs), this would make Reddit's average revenue per user (ARPU) about $0.30." From the report: That estimate would make Reddit's ARPU significantly lower than other social networks, even those with similar MAUs. Twitter, for example, reported 321 MAUs for its latest quarterly report, and with annual revenue of about $3.04 billion in 2018, that would make its ARPU about $9.48. Facebook reported 2.32 billion MAUs in its latest report and ARPU of $7.37. Snap does not report global MAUs, but reported $2.09 ARPU in its latest quarterly report.

Pinterest, which has yet to go public but is preparing for an IPO this year, says on its website it has 250 million monthly users. Pinterest declined to comment on their revenue, but a September article in The New York Times said the company was on track to top $700 million in revenue for 2018. That would bring its ARPU to about $2.80. While Reddit's value per user is much lower than its peers, it is betting its access to a valuable demographic will appeal to advertisers and potentially even draw their dollars from larger rivals like Facebook and Google. The company said half of its MAUs are between the ages of 18 and 24.

6 of 184 comments (clear)

  1. bad numbers by Anonymous Coward · · Score: 2, Insightful

    I seriously don't believe for a second reddit has 330 million active users per month. I bet they count in this every person that clicks on a search result that takes them to reddit or some reddit thread.

  2. No surprise there by ReneR · · Score: 3, Insightful

    Ps: can we stop selling each other's users and advertising content and get back to developing selling real stuff, fly to moon and mars and fun things like that?

    1. Re:No surprise there by Opportunist · · Score: 3, Insightful

      But that's hard! Doing real stuff is really hard.

      Selling something you get for free to people who then sell the promise of selling more of stuff you don't have to people who don't want it is way easier. Not very useful, I give you that, but where's the profit in that?

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  3. Reverse correlation by lucasnate1 · · Score: 5, Insightful

    Funny, cause reddit is also one of the networks with the highest quality of comments. I guess that according to ad-tech companies, people are valuable the more they are stupid & passive consumers.

    --
    Avantgarde Hebrew science fiction
    1. Re:Reverse correlation by mccalli · · Score: 3, Insightful

      Depends where. On the big subs that hit /r/all, definitely. On the smaller ones that are more what you're interested in? Tends to be a bit more friendly and higher quality. If you're after fake internet points then you'll had to the big subs. If you're after discussion....go small.

  4. Reddit is a Social Network? by zenasprime · · Score: 4, Insightful

    Since when? Are we now just calling any website that has user accounts and topic discussion a "social network" in hopes of investment money?

    And if so, hasn't that bubble already popped?