Reddit’s quarterly report for the fourth quarter of 2024 revealed a total revenue increase of 71% from the same period the previous year, reaching $427.7 million, with a net profit of $71.0 million from 101.7 million DAUs.
An interesting point in Reddit’s revenue this quarter is the income generated from selling licenses to access data for companies developing artificial intelligence technology, used to train AI models. CEO Jen Wong disclosed that this revenue accounts for 10% of the total revenue for the quarter, although it is a relatively small portion.
Currently, Reddit has agreements in place with two technology companies, Google and OpenAI, allowing them access to data for AI training purposes. Google reportedly pays approximately $60 million annually for this access, while OpenAI’s agreement is estimated to be around $70 million per year.
Source: Adweek and Search Engine Land
**TLDR: Reddit’s Q4 2024 report shows a 71% revenue increase, driven partly by selling data access licenses to tech companies like Google and OpenAI for AI training purposes.
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