Reddit has posted an AMA video about its earnings for Q4 2024, and with it comes the news that paid subreddits—special user-created boards that will allow authors to lock what is apparently premium content behind a paywall—is currently in the works and scheduled for release later this year.
“I mentioned that one a couple of quarters ago,” reddit CEO Steve Huffman says at one point in the video in response to a question regarding the development of paid subreddits, a feature that would allow people to create content that only paid members could see. “It’s a work in progress right now so that one’s coming. We’re working on it as we speak.”
“Can we expect to see the introduction of paid subreddit system and marketplace this year?” another asked, to which Huffman replied: “I think we basically answered that. On the new stuff, there’s Reddit Answers. Paid subreddits, yes. Marketplace? Probably not, though we’ll be laying the foundation for it.”
See below for some of the major highlights from reddit’s Fourth Quarter and Full Year 2024 results, including an additional statement from Huffman, who co-founded and launched the website in 2005:
Fourth quarter 2024
- Total revenue increased 71% year-over-year to $427.7 million, Ad revenue increased 60% year-over-year to $394.5 million, and Other revenue reached $33.2 million
- Gross margin was 92.6%, an improvement of 420 basis points from the prior year
- Net income was $71.0 million, as compared to net income of $18.5 million in the prior year
- Adjusted EBITDA was $154.3 million, an improvement of $131.2 million from the prior year
- Operating cash flow was $90.0 million, an improvement of $107.4 million from the prior year
- Free Cash Flow was $89.2 million and capital expenditures were $0.8 million, less than 1% of revenue
- Basic and diluted earnings per share (“EPS”) were $0.40 and $0.36, respectively
- Total fully diluted shares outstanding were 206.2 million as of December 31, 2024, down 0.1% from the prior quarter
Full year 2024
- Total revenue increased 62% year-over-year to $1.3 billion, Ad revenue increased 50% year-over-year to $1.2 billion, and Other revenue reached $114.7 million
- Gross margin was 90.5%, an improvement of 430 basis points from the prior year
- Net loss was $484.3 million, as compared to net loss of $90.8 million in the prior year
- Adjusted EBITDA was $298.0 million, an improvement of $367.3 million from the prior year
- Operating cash flow was $222.1 million, an improvement of $297.2 million from the prior year
- Free Cash Flow was $215.8 million and capital expenditures were $6.2 million, less than 1% of revenue
It was another strong quarter as we accomplished exciting milestones across revenue and international growth. However, what’s most exciting is still ahead. We’re focused on providing a best-in-class experience for finding community and trusted information, proving that Reddit is for everyone, everywhere.