Reddit Poised For Accelerated Growth in its Data Licensing Division

According to Visible Alpha consensus estimates, Reddit (NYSE: RDDT) is poised for accelerated growth in its data licensing & others division, with growth expected to surge by +466% in 2024, totaling $86 million. The U.S. social media company primarily generates revenue from advertising which, as of 2023, accounted for 98% of the company’s total revenue.

Analysts estimate a rising share of data licensing & others segment in Reddit’s total revenue, with the share estimated to grow from just under 2% in 2023 to approximately 8% in 2024. The company has been focused on building its data licensing business, by leveraging its large pool of human-generated content via deals with search engines/chatbots. The company recently partnered with OpenAI to bring its content to ChatGPT, and announced a partnership with Google in February.