Reddit’s latest funding round values its users at a lower cost than any various other social network.
The company announced Monday in which had raised $300 million in its Series D investment round at a valuation of $3 billion. CNBC previously reported the company’s annual revenue topped $100 million, according to sources familiar with the matter, along with also at 330 million monthly active users (MAUs), This particular would likely make Reddit’s average revenue per user (ARPU) about 30 cents. Reddit did not immediately respond to a request for comment regarding its latest revenue details.
in which estimate would likely make Reddit’s ARPU significantly lower than various other social networks, even those with similar MAUs. Twitter, for example, reported 321 MAUs for its latest quarterly report, along with also with annual revenue of about $3.04 billion in 2018, in which would likely make its ARPU about $9.48.
Facebook reported 2.32 billion MAUs in its latest report along with also ARPU of $7.37. Snap does not report global MAUs, however reported $2.09 ARPU in its latest quarterly report.
Pinterest, which has yet to go public however is usually preparing for an IPO This particular year, says on its website in which has 250 million monthly users. Pinterest declined to comment on their revenue, however a September article inside brand new York Times said the company was on track to top $700 million in revenue for 2018. in which would likely bring its ARPU to about $2.80.
While Reddit’s value per user is usually much lower than its peers, in which is usually betting its access to a valuable demographic will appeal to advertisers along with also potentially even draw their dollars coming from larger rivals like Facebook along with also Google. The company said half of its MAUs are between the ages of 18 along with also 24.
“When we are talking about competing for ad dollars, of course we are talking about Facebook along with also Google, who take up the vast majority of ad spend,” said Reddit CEO Steve Huffman in an interview with CNBC. “We are competing with anybody, or anywhere people spend their free time.”
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