Reddit: Revenue more than triples as UK profit jumps
Revenue at the UK arm of Reddit more than tripled during its latest financial year as profit also surged, it has been revealed.
The London-headquartered division has posted a revenue of £96.7m for 2024, new accounts filed with Companies House show.
That total is up significantly from the £28.4m it posted for 2023.
From 1 January, 2024, Reddit UK entered into an exclusive reseller agreement with its ultimate parent company to operate in Europe, Middle East and Africa.
Reddit said its UK turnover has increased by £68.3m in 2024 “largely due” to the introduction of third part advertising sales under that agreement.
From advertising revenues, the company raked in £78.9m in the year but its earnings from research and development services declined from £28.4m to £17.7m.
The new accounts also confirm that Reddit UK’s pre-tax profit jumped from £37,129 to £4.8m in 2024.
Reddit rising in popularity in the UK
Reddit was founded in 2005 and is headquartered in California.
The company floated in the US in March 2024 with a valuation of $6.4bn (£4.7bn).
Also during the financial year, the company stuck a $60m deal with Google allowing it to use Reddit content to train its AI models.
It also overtook X – formally Twitter – in popularity among UK adults.
For 2024, Reddit Inc achieved a revenue of $1.3bn, a rise of 62 per cent.
In July 2024, Morning Wire reported how the use of TikTok and Reddit for investment ideas from young investors had skyrocketed, as Gen Z and Millennials increasingly turn to social media for financial advice.
According to data from Hargreaves Lansdown, the number of 18-34 year old investors who goy money knowledge from Reddit and TikTok had jumped dramatically in the prior three years, from 17 per cent to 26 per cent for Reddit, and from 12 per cent to 20 per cent for TikTok.
In contrast, 43 per cent of 18-34 year olds said in 2021 that they got investment information from websites of financial companies; that figure has now cratered to 29 per cent.