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Chronicles

The story behind the story

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Reddit says it averaged 52M DAUs in October, up 44% YoY, disclosing the metric for the first time; ad revenue hit $100M+ in 2019, on track to rise 70%+ in 2020

The disclosure comes as the tech company pursues new advertisers  —  Reddit Inc. said it averaged 52 million daily active users in October …

Wall Street Journal Sahil Patel

Context & Ripple Effects

In December 2020, Reddit put a hard number on its scale for the first time: 52 million average daily active users in October, up 44% year over year, alongside an admission that ad revenue passed $100M in 2019 and was tracking to grow more than 70% in 2020. Until then, Reddit's size was largely anecdotal, which limited how seriously brand advertisers could take it.

That first disclosure set the template Reddit still runs on: every earnings report since — from Q3 2024's 97.2M DAUs through Q1 2026's 126.8M — leads with the same user metric, now graded against Wall Street estimates. The October 2020 figure is effectively the baseline of Reddit's entire investor narrative.

First-order effects

  • Advertisers evaluating Reddit gain a directly comparable audience metric for the first time, giving the company's sales pitch — new advertisers, per the WSJ — a number other platforms already publish.
  • The $100M-plus 2019 ad revenue and 70%-plus 2020 growth claim hand Reddit a concrete proof point to court brand budgets previously spent on larger social networks.

Second-order effects

  • Once disclosed, DAU becomes the number markets grade Reddit on: later prints like Q2 2025's 110.4M daily active uniques show beats and misses against consensus moving the stock by double-digit percentages.
  • Rival social platforms face a new engagement benchmark in ad-pitch comparisons, since Reddit can now be slotted into the same DAU tables as its competitors.

Third-order effects

  • The disclosure discipline foreshadowed public-market accountability — Reddit later joined the S&P 500 as the index's second pure-play social media company after Meta, where quarterly DAU reporting is table stakes.
  • The pattern across the corpus points to a structural shift: user growth decelerating (from 47% YoY in late 2024 to 17% by Q1 2026) while revenue growth holds near 70%, meaning Reddit's valuation story migrates from audience expansion toward monetization per user.

The trend: Reddit's arc from undisclosed community metrics to a quarterly DAU-and-revenue cadence shows niche social platforms adopting public-company disclosure years before they list.

Discussion

  • @quinnypig Corey Quinn on x
    The problem of course is that Reddit ads are widely considered to be crap. When I first started I dropped $20 advertising @LastWeekinAWS on /r/aws. *ZERO* clickthroughs, let alone sign-ups. https://twitter.com/...