2026 State of Mobile is Live!
Seema Shah · May 2024
MMM: Reddit Q1 2024 Advertising Trends and Earnings Results
Reddit smashed street expectations in its first ever publicly reported quarterly earnings, posting double-digit YoY growth in revenue in 1Q24, which was directionally in line with increases in impressions served and ads placed per session on the Reddit app per Sensor Tower data. Additionally, Reddit’s reported logged-in DAUqs and DAUqs both increased in line with ST app DAUs for Reddit as strong engagement with video content drove interest in the platform.
Key Takeaways:
Reddit’s share price soared +20% after reporting strong growth in 1Q24 revenue, which exceeded street expectations. Reported revenue, primarily from advertising, increased 48% YoY in 1Q24, with the company attributing the strong growth to a material increase in impressions over the past year. This was largely corroborated by Sensor Tower data as the top ten advertisers on Reddit (by impressions served) saw impressions jump a collective average of 7x YoY in the US in 1Q24, potentially driven by an increase in activity or placements on the mobile app across the past year
Additionally, ST’s proprietary panel data suggests an increase in ads served to Reddit users during mobile app sessions. Per ST, ads placed per daily session on Reddit increased 20% YoY in 1Q24, a 2600bps acceleration from 4Q23 growth, compared to +48% YoY for Reddit’s reported revenue, also up similarly (+2400bps) from 4Q23 growth
Reddit noted momentum (YoY) in the financial services, CPG and pharma verticals, which was largely supported by ST data. Per ST estimates, thirty out of the top one hundred advertisers on Reddit (by impressions served on mobile) in the US in 1Q24 were from the financial services, CPG and pharma verticals, up from twenty three out of one hundred in 1Q23
Reddit’s reported YoY growth in logged-in DAUqs (+27%) and DAUqs (+37%) in 1Q24 was largely in line with growth in ST mobile app DAUs for Reddit (+20%). Between 1Q21-1Q24, ST mobile app DAUs for Reddit have consistently moved in line with both the company’s reported logged-in DAUqs and DAUqs, boasting robust correlation coefficients of .99 and .88, respectively
The rise in popularity of short-form video platforms has prompted a greater focus by social media companies on leveraging this critical surface to both engage users and serve ads. Reddit COO Jen Wong detailed the importance of video on the company’s 1Q24 earnings call noting that “...Video is one of our fastest-growing content types. More-and-more people spend more-and-more time on video on Reddit.” ST’s proprietary mobile app panel largely corroborated this statement as the share of US user time spent on Reddit watching videos increased 2pps when comparing the past 30 days vs Dec’23, making it one of the fastest growing surfaces
For more information, request the full report from reports@sensortower.com.
