Revenue at the UK division of Reddit more than tripled during its latest financial year as profit also soared, it has been revealed.
The London-based operation has recorded a turnover of £96.7m for 2024, fresh accounts lodged with Companies House demonstrate, as reported by City AM.
That figure represents a substantial increase from the £28.4m it achieved 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 generated £78.9m in the year but its earnings from research and development services fell from £28.4m to £17.7m.
The fresh accounts also reveal that Reddit UK’s pre-tax profit leapt from £37,129 to £4.8m in 2024.
Reddit gaining traction in the UK
Reddit was established in 2005 and is based in California.
The firm went public in the US in March 2024 with a valuation of $6.4bn (£4.7bn).
Also during the financial year, the company struck a $60m deal with Google allowing it to use Reddit content to train its AI models.
It also surpassed X – formerly Twitter – in popularity among UK adults.
For 2024, Reddit Inc delivered a revenue of $1.3bn, a rise of 62 per cent. In July 2024, City AM highlighted a significant surge in the use of TikTok and Reddit by young investors for investment insights, as Gen Z and Millennials increasingly rely on social media platforms for financial guidance.
Hargreaves Lansdown data revealed that the proportion of investors aged between 18 and 34 who gleaned financial knowledge from Reddit and TikTok had seen a substantial increase over the previous three years, rising from 17 per cent to 26 per cent for Reddit, and from 12 per cent to 20 per cent for TikTok.
Conversely, while 43 per cent of individuals within the 18-34 age bracket claimed to have sourced investment information from financial companies’ websites in 2021, this figure has since plummeted to 29 per cent.
