Reddit Revenue Soars As It Bets On Ai And Advertising

Reddit reported its second-quarter net connected Thursday, and it’s clear that nan company’s attraction connected AI has ramped up significantly.

One important area of finance is increasing its advertizing business, supported by its AI-powered trading tools. The results revealed that nan mostly of Reddit’s gross continues to travel from ads, which brought successful $465 million, representing 93% of Reddit’s full revenue. 

Last month, nan institution launched 2 caller features for advertisers: Reddit Insights, a instrumentality that leverages nan billions of posts and comments connected nan level to spot trends and connection real-time insights for run strategies, and Conversation Summary Add-ons, which fto advertisers see Reddit personification discussions straight successful ads, showing nationalist opinions astir products aliases brands.

The institution besides saw maturation successful its “other revenue” category, which includes its information licensing business — meaning its deals pinch AI providers for entree to its data. Reddit said nan class jumped 24% year-over-year to $35 million, up from $28.1 cardinal successful nan aforesaid play a twelvemonth prior. 

Reddit has already established contented licensing agreements pinch awesome players successful AI, including Google and OpenAI. Although these deals are still new, nan results from nan 2nd 4th constituent retired a dependable income watercourse that has important imaginable for nan agelong haul.

Another cardinal AI-powered characteristic is nan Reddit Answers tool, which launched successful December. This tool, which offers answers successful a conversational interface, has attracted 6 cardinal play users, a sizeable jump from 1 million users successful nan erstwhile quarter. 

In a letter to shareholders, Reddit CEO Steve Huffman said nan level is moving to merge nan instrumentality “more profoundly into nan halfway hunt experience” to make “search a cardinal characteristic crossed Reddit.”