Reddit’s modern funding round values its users at a lower price than any other social network.
The company announced Monday it had bring up $300 million in its Series D investment round at a valuation of $3 billion. CNBC previously reported the company’s annual interest topped $100 million, according to sources familiar with the matter, and at 330 million monthly active operators (MAUs), this would make Reddit’s average revenue per user (ARPU) about $0.30.
Reddit did not immediately retort be responsive to to a request for comment regarding its latest revenue details.
That estimate would make Reddit’s ARPU significantly discredit than other social networks, even those with similar MAUs. Twitter, for example, reported 321 MAUs for its example quarterly report, and with annual revenue of about $3.04 billion in 2018, that would make its ARPU relating to $9.48.
Facebook reported 2.32 billion MAUs in its latest report and ARPU of $7.37. Snap does not report broad 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, prognosticates on its website it has 250 million monthly users. Pinterest declined to comment on their revenue, but a September article in The New York On one occasions said the company was on track to top $700 million in revenue for 2018. That would bring its ARPU to about $2.80.
So, in dipping order:
- Twitter ARPU: ~$9.48
- Facebook: $7.37
- Pinterest: ~$2.80
- Snap: $2.09
- Reddit: ~$0.30
While Reddit’s value per user is much quieten than its peers, it is betting its access to a valuable demographic will appeal to advertisers and potentially even draw their dollars from larger competitors like Facebook and Google. The company said half of its MAUs are between the ages of 18 and 24.
“When we are talking regarding competing for ad dollars, of course we are talking about Facebook and Google, who take up the vast majority of ad spend,” said Reddit CEO Steve Huffman in an examine with CNBC. “We are competing with anybody, or anywhere people spend their free time.”
-CNBC’s Julia Boorstin promoted to this report.
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