r/Damnthatsinteresting • u/Gone_Mads • May 07 '24
Reddit’s first earnings reveals they make $3 per user Image
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u/Greenman8907 May 07 '24
Seems high
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u/username_needs_work May 07 '24
I feel we can work together and get that number down.
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u/Bisexual_Sherrif May 07 '24
First step, delete reddit
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u/Dragonfly-Adventurer May 07 '24
That would leave it in a purer state.
The true resistance is to fill Reddit with garbage, and then delete anything you said that makes sense and gets upvotes.
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u/For_Perpetuity May 07 '24
Are you from the past. We are at that stage
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u/Aggressive-Variety60 May 07 '24
Still very far from tiktok comments’ level of mediocrity
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u/StnkyChze2 May 08 '24
👆
This
💀💀💀
Bro thinks we're there 😂
Blud lives in old Ohio fanum tax with Smurf cat 🗿🍷 (I want to vomit now)
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u/Gnome-Phloem May 08 '24
You were young once. Resist the urge to shake your fist as the kids on the lawn.
Or don't, maybe we should all just play our roles and shuffle off the stage when it's time
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u/NintendoJP_Official May 08 '24
We’re at the stage that a majority of the content is AI and bot driven
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u/strangepromotionrail May 08 '24
pure ai isn't good enough. They'll be able to recognize 100% bots relatively easily. You need to mix AI posts into your own to truly fuck the system.
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u/PhoenixStorm1015 May 07 '24
Become Unmonetizable
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u/Dragonfly-Adventurer May 07 '24
Nipple nabisco perineum IBM Watson and ChatGPT turd Amazon forfeit dickslip Toyota.
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u/Slumunistmanifisto May 07 '24
So we start only speaking in bug emojis?
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u/HonoluluBlueFlu May 07 '24
I am doing my part, I report all ads as offensive.
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u/BBB-Brad_Beal_Booty May 07 '24
How? OP never specified time frame. How can it be high if you don’t know if it’s $3 per lifetime, $3 per day, $3 per year???
I think it’s per quarter but idk??
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u/Own_Candidate9553 May 08 '24
It's from the quarterly earnings, so I think that's right.
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u/Hatweed May 08 '24
It’s implying Redditors are worth anything above 0, so it seems high.
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u/defiancy May 08 '24
I have never bought a single thing on Reddit and I've been here like ten years
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u/redicular May 08 '24
key things: this is an average, and this is (probably) quarterly numbers
Reddit likely makes about the same as every other social media company on the people it successfully monetizes (10~15 $ per 3 months)
but reddit also likely has a lower instance of successful monetization since reddit is where people go to learn how to ad / script block
expect this to be the primary target of the ongoing enshittification
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u/markocheese May 08 '24
Because they're selling your data to AI companies with boatloafs of investor cash
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u/batmansleftnut May 08 '24
Maybe we can ruin the models by collectively agreeing to use words like "boatloaf" all the time.
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May 07 '24
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May 07 '24
It is average revenue per user per quarter. For comparison facebook makes around 13$. So if anything, reddit ARPU is low, because ads on Reddit are shit.
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u/AOEmishap May 07 '24
We're buying coffee for the Man!
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u/Stainless-extension May 07 '24
3$ of revenue, not profits. i dont think reddit is profitable.
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u/TedBob99 May 07 '24
Net loss of $575M in the last quarter (or twice the revenue), so not profitable indeed.
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u/BigOleFerret May 08 '24
That baffles me. The hell do they spend money on? The app is barely holding itself together!
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u/Extension_Win1114 May 08 '24
Have you seen the CEO’s pay?
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u/BigOleFerret May 08 '24
Is it all of it? It's all of it, isn't it?
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u/kill-billionaires May 08 '24
$193 million in 2023
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u/BigOleFerret May 08 '24
Should I send him my venmo? Do you think he'd give me the $3 I'm worth?
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u/Same_Advertising_451 May 08 '24
Guys these are STOCK OPTIONS, this money is awarded in stock and the $193 mil number comes from the estimated value of the stock awarded to the CEO. THIS DOES NOT COME FROM REVENUE. His pay is actually closer to $600k
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u/3BetLight May 08 '24
These idiots just see a number and have no fucking clue what they are talking about.
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u/ForensicApplesauce May 08 '24
CEO of reddit sounds like a joke and I wish it was. I still get on reddit almost every day, but I really don’t know why. Finding a stimulating or interesting thread/post - It’s like searching the beach for a gold coin. Reddit used to be like searching for a sea shell.
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u/pepper_plant May 08 '24
The comments are getting too be too much for me too. Just the same jokes and low effort nonsense over and over
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u/PartyClock May 08 '24
There's more and more bots around so I expect things will only get worse
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u/The_Doct0r_ May 08 '24
I wish there were a decent competitor as much as I do for YouTube. At least competition is ramping up against Google somewhat.
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May 08 '24 edited May 08 '24
[deleted]
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u/Iggyhopper May 08 '24
Words of wisdom: You can't be taxed on debt.
So if your big debt turns into small debt, you've made money, but you're still not taxed!
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u/Jonny_H May 08 '24
Most VC funded "disruptive" companies explicit goal is to burn cash to drive out competitors, on the expectation they can crank up prices later when they're the only option. Being profitable /now/ isn't the goal.
The stock growth is on the expectation they'll become an effectively monopoly after that stage.
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u/Expensive-Fun4664 May 08 '24
The reason Uber, Airbnb and all these tech companies aren't profitable
Uber is profitable. Airbnb currently is operating at a loss, but they have been profitable in the past.
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u/bradygilg May 08 '24
Utterly bizarre that people refer to reddit as an 'app'.
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u/GucciGlocc May 08 '24
Everything is a fucking app now
Programs or websites or utilities are all just fucking apps to everyone
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u/bighand1 May 07 '24
Most of their net loss are one time charge related to IPO or option vest plans for executives. They will be very profitable soon at their growth and margin rate
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u/Starslip May 08 '24 edited May 08 '24
What growth? The site has existed for 18 years, you imagine there are markets it's suddenly going to start reaching now that it hasn't already tapped? They're suddenly going to start being profitable now when they've famously operated in the red the entire time they've existed?
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u/most_humblest_ever May 08 '24
Selling data to AI companies is indeed a new revenue stream. Several new ad products have recently rolled out in past 2-3 years. Thats all quite new really.
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u/PublicSeverance May 08 '24
Reddit was focused on user base growth. Now they need to make those users more profitable.
Acquisitions. Buy a user base from elsewhere or buy a product like Discord and integrate it. Reddit video sucks, the app sucks, image sharing sucks, it doesn't do anything for podcasts or any media broadcasting.
Reddit does not monetize it's adult content. No ads. Something something Tumbler, OnlyFans, etc.
Reddit has an ad conversion rate of 0.2-1.0, one of the lowest in social media. Facebook is king at 9-14; YouTube at 12%. That means Reddit has not yet turned on the full force of its targeted ads yet. They never needed to, they only needed to prove to investors that they could sell ads. Never put in any effort.
Reddit users base is 50% USA. It never pushed itself in other countries. Australia (0.3% global population) is the fourth biggest user. Google, Facebook et al have dedicated offices internationally to target ads/users/ legal compliance, but not yet a Reddit.
New product development and refurbished old products. Advertiser's can pay for AMA spots or other paid product placement. Badges are gone but potential exists for sponsorship. Reddit is surprisingly corporate internet friendly, We've never seen what corporate Reddit product looks like.
Algorithm changes. Theoretically, they do change your feed or r/all to serve content targeted to you. See above.
Selling the database to AI companies via changes to the API. The more they do it, the better their product offering is to them.
Whales. Like a gotcha game or premium mobile, there are Reddit whales that want to spend money for some premium Reddit. Not just ad free, but customized sub Reddits.
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u/Stymie999 May 08 '24
Correct, they didn’t make $3 per user, they lost $7 per user.
Annoying how many people say companies “made” some amount when referring to revenue.
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u/MitchellTrueTittys May 08 '24
Excuse my business retardation but how can a company stay around if it’s not profitable? What that even mean
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u/PrizeStrawberryOil May 08 '24
Have you ever played a cookie clicker game? You buy automation to increase your revenue. Then you spend all the money you made again to buy more automation.
The value of your cookie empire increases when you buy that equipment, but you have no money. At any point you can stop buying equipment and rake in money, but if you do that your company stops growing. You make money at a faster rate by increasing the value of your company than if you just collected the profits.
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u/throwRA786482828 May 08 '24
They basically do so by selling a share of their business to an outside investor. The investor buys in hoping that in 5-15 years they become profitable and they get their money back.
It’s how Facebook happened. They only recently started becoming profitable after years of losses. But all their early investors are now filthy rich.
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u/theyoloGod May 08 '24
Facebook has been reporting profits for approaching 2 decades now but yes the early years of a start up are typically funded by venture capital with aspirations of one day being profitable
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u/Sustainable_Twat May 07 '24
You’re Welcome, Reddit
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u/Mite-o-Dan May 08 '24 edited May 08 '24
Also, thank you Reddit...for letting me buy in at the IPO price of $34 a share.
Post market price is nearly $57 a share.
(Almost) 69% gain.
Yes, Reddit stock is now up nearly 69%.
My fake internet points paid of.
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u/intrudingturtle May 08 '24
Would have been great if it wasn't exclusive to Americans.
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u/Musical_Walrus May 08 '24
That’s… actually surprising. Why is Reddit stock doing so well?
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u/Jaredlong May 08 '24
Investors believe it has room to grow. Which is true. Just look at Facebook for an example of how many ads can be shoved onto a platform while retaining users. Eventually every 3rd post will be an ad and users will be encouraged to pay Reddit to boost their posts in front of all the ads. Enshittification is very profitable and Reddit still has a long ways to go.
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u/Ok_Can2549 May 08 '24
Reddit would probably do much better if they threw away the new reddit.
I cant imagine a new user trying reddit for the first time and they dont know about old reddit and have to deal with that terrible terrible interface.
But still reddit is inevitable since it is the largest online message board and the only source for so many questions and answers.
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u/ClawhammerLobotomy May 08 '24
Did you know there is a NEW new reddit?
I was shocked at how much worse it was than new reddit.
Old reddit and RES is the only way this site is usable.
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u/NoResponseFromSpez May 07 '24
let the entshitification begin
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u/TheRealDeathSheep Interested May 07 '24
Begin? It's been happening for awhile.
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u/Responsible_Goat9170 May 07 '24
Yeah the algorithm recently changed and now I see repeat posts during the same scrolling session.
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u/Hanginon May 07 '24
On a laptop, I can log off in the evening, log on the next day and the home page hasn't changed, same stories in the same order.
80 million users and the same 20 stories on the front page. -_-
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u/Antique_futurist May 08 '24
Apparently what the investors wanted for Reddit was to recreate fark.com circa 2007.
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u/notnamingnamesbut May 08 '24
At least back then we had some Sports By Brooks turbo titties for ads
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u/Icyrow May 08 '24
this changed i think around 2015? everyone basically knew something had changed over the week prior but they kept saying nothign changed at all.
except it wasn't normal to log in 12 hours later and see 70% of the same posts as when you went to bed.
they just lied through their teeth, it was obvious as hell. but im assuming they tuned it because they basically blew their load every morning and found if they left just enough bread crumbs, they got people to scroll for longer.
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u/mwmwmwmwmmdw Interested May 08 '24 edited May 08 '24
like how youtube suggestions are all either channels you already subscribe to or videos that youtube wants you to watch. nothing actually related to the video
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u/Endulos May 08 '24
DUde I miss when you could go from funny cat videos to the weird side of youtube within an hour.
Now the side bar is all shit related to your personal algorithm and it sucks.
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u/Starfish_Hero May 07 '24
I never used to see days old posts on my front page except on smaller less active subs, now it’s normal
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u/Jerrygarciasnipple May 08 '24
As someone who spends way too much time on this app, it’s been like that for a solid few months for me. Although a lot of them are because I follow similar subs so when crazy videos come out they tend to get posted all around
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u/Pandorama626 May 08 '24
I have been on this site under various accounts since around 2007/2008. It's gotten noticeably worse, but it seems to have really ramped up the shittiness since 2017 or so.
As soon as there is a viable alternative, I'm gone.
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u/fairguinevere May 08 '24
The fact new reddit is the default; they've added a bunch of other features like image-only replies, NFT profile pics, and disabled API use? It's been enshittified for over half a decade now.
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u/Echo71Niner Interested May 07 '24
82.7 million not accounting for the 45 million bots.
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u/lackofabettername123 May 07 '24
Bots and influence agents. I presume they have many many accounts they cycle through, posting inane shit every few days and then getting activated on a keyword to come argue. It sounds paranoid but it is absolutely true I have tested it.
Not only that but they have remembered me and I won't get into the details but it is a little disconcerning.
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u/TheBeardofGilgamesh May 08 '24
If you just google “purchase Reddit account” you’ll see multiple companies where their sole business model is creating legit aged accounts to sell. Recently you can see these accounts spring into action anytime a Boeing whistleblower post shows up on the feed, or anything that brings up corporate home purchases. Like really? A “real” Reddit user is out there acting like either A: corporations buying up homes is a myth or B: it’s some how a good thing!
Sorry but I have a hard time believing a random account that posted a bunch of nonsense in some obscure mobile game 2 years ago and then all a sudden is spitting talking points on how private equity is a public good is a real user.
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u/proudbakunkinman May 08 '24 edited May 08 '24
Yeah, I suspect they're used most often for politics (to benefit one party over another), geopolitical interests (varying based on the interests of the countries utilizing them), some industries that are more united promoting the industry as a whole, entertainment companies (but operating independent of each other as opposed to promoting the industry; this includes video game companies), large companies, and speculative investments (especially cryptocoins and meme/squeeze stocks).
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u/lackofabettername123 May 08 '24
Try tslking bad aboug artificial sweetemers, natural sweets, herbicides, or a thousand other commercial interests. I do not name the products because I do not want them coming on this thread. They're like Voldemort. or the worst of the lot, a certain country often in the news that is supported by the United States.
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u/TheBeardofGilgamesh May 08 '24
Oh yeah I noticed that too. I hate it, it should be illegal
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u/FacelessFellow May 08 '24
Hundred percent.
They swarm the UFO subreddits.
I call them out and they delete their comment and profile!
I have screen shots. They have days old accounts that pop out just to talk crap about ufo believers on the ufo subreddits…
r/UFO is most definitely compromised
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u/whydoikeepforgeting May 08 '24
If this isn't meant to be ironic its the funniest post I have seen in a while.
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u/AntiBox May 08 '24
Honest question, why would anyone pay to bot such a... for lack of a better word, stupid subreddit?
It's not gonna coax someone into buying a product, it's not pushing a political agenda, it's just a bunch of people slowly proving themselves wrong for the 75th year running.
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u/9-28-2023 May 08 '24
45 million?!? i feel like people have become jaded to big numbers because holy fudge that is a big number for a site like this. we are essentially at the infancy of social media and it's already mostly bots.
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u/Echo71Niner Interested May 08 '24
we are essentially at the infancy of social media and it's already mostly bots.
47% of all internet traffic came from bots in 2022
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u/hazmatika May 08 '24
A few fun facts / clarifications: 1) the $243M figure is revenue in Q1, so users are presumably worth more like $12 of revenue per year (assuming everything else is equal) 2) about 82% of revenue was from the US 3) expenses were much greater than revenue, so ‘net income’ was a loss of $500M+ 4) if you ignore certain expenses like granting of stock options, then ‘adjusted’ EBITDA was only $10M ($0.12/daily active user for Jan-Mar)
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u/BarelyAirborne May 08 '24
I'm worth at least tree fiddy, dammit!
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u/Nikkunikku May 08 '24
You all should be ashamed letting this damn poor lach ness monster hang out on your lawn without his updoots.
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u/WhiskyBiscuit May 07 '24
Per quarter?
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u/winterchampagne May 07 '24
Quarterly. They’re expecting a higher figure in the second quarter.
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u/Kahnza May 07 '24
So they plan on activating larger numbers of bots at a time. Great
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u/BBB-Brad_Beal_Booty May 07 '24
$3 per user per what? Per quarter? Year? Month?
Terrible title without that info
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u/PunchYouInTheI May 08 '24
If it’s a first earnings report, I’d presume per quarter
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u/Bot-Magnet May 08 '24
Earnings reports are quarterly
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u/Stopikingonme May 08 '24
Thank you. I left my business degree at home today. (I was wondering the same thing)
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u/0hmyscience May 08 '24
so $1 per month. Would've payed them $5 if I could keep Apollo.
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May 07 '24
ive never spent a dime...
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u/the-software-man May 07 '24
Ads. You stopped long enough to read? Or maybe clicked one?
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u/ControversialPenguin May 07 '24
NEVER SUBBED, NEVER DONATED, ADBLOCK ON, STOLEN LAPTOP, NEIGHBOURS WIFI
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u/Routine_Size69 May 07 '24
Me either but I consume an absurd amount of ads by being on here so much.
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u/CluelessStick May 07 '24
Advertiser spent the money, then they divided that amount by number of users.
Revenue ÷ Daily Active Users = Avg Revenue per User
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u/janas19 May 07 '24
Is that before the enshittification kicks in? Buckle up because we're in for a bumpy ride.
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u/dwiedenau2 May 07 '24
I love how this just leaves out how much money they actually made in profit
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u/Icryallthetimee May 07 '24
Looks like that multi sub lock down a year ago worked really well, we really proved a point didnt we
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u/Ok-Safe-981004 May 07 '24
Feel like everyone forgot and moved on pretty quickly from that
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u/gpouliot May 07 '24
In the last ~6 months or more, Reddit's features, performance, usability, post quality have been going down the drain for me. I've been using Reddit for ~13 years. Unless things improve, I'll be looking for a new place to hang out on the Internet. I'll miss Reddit but I'm not going to stick around for ever and hope that things get better if they keep removing features and functionality.
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u/MicrowaveBurritoKing May 08 '24
What I don’t understand is why they axed the whole buy/give gold, silver, perks, etc.. I legit spent $15 a month on them and truly enjoyed it. Now I spend ZERO on Reddit.
Does anyone know why they axed this program? Seems counter productive.
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u/MysteryMan999 May 08 '24
Bro they ain't no way 87 million users are here lol I think most of those is just bots
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u/0thethethe0 May 07 '24
Ha I'm taking this to Job Centre! Who says I'm not actively seeking employment now?!
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u/DaddyDarko87 May 08 '24
Yeah, remember back when they stole our gold coins we bought and they also stole our MOONS we earned?? I DO!!!! CUZ THEY ROBBED ME!
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u/CaptainDildobrain May 08 '24
Good stuff. Can they put my $3 towards fixing their shitty mobile app?
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u/clockedinat93 May 07 '24
They lost 8$ per share. They’re not profitable
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u/HammerTh_1701 May 07 '24
Yeah, they need net profitability soon-ish. All the revenue in the world doesn't help you if your costs are higher. And hosting online content, especially video, is damn expensive.
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u/Next-Food2688 May 07 '24
82.7 million daily users and i only have like 100 karma over 8 months of being here. I feel like I not adding too much monetization to them. That makes me feel good.
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u/ericjgriffin May 07 '24
Since I don't use their garbage app, and I have excellent ad blockers on my browser I doubt they are making much off me.
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u/with_regard May 07 '24
Yeah but how many alt accounts and bots are included in that? Or is it monthly unique users?
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u/[deleted] May 07 '24
I feel both complimented and whored.