The San Francisco-based company will use its new funding to further its international presence as well as explore new content types. On Thursday, Reddit made an important announcement. The company will raise hundreds of millions of dollars in a Series F fundraising round led by Fidelity Management, giving it a valuation of over $10 billion, more than triple what it was worth in February 2019. Reddit already raised $410 million from Fidelity Management in its second funding round since the start of 2021.
Several months ago, the social media site completed a capital raise that doubled its valuation to $6 billion. The company also reached $100 million in advertising revenue for the first time in the second quarter of 2021.
Reddit, Twitter, and Facebook
As of January, Reddit had 52 million daily active users and 100,000 subreddit communities. Reddit’s ill-famed WallStreetBets forum now has more than 10.7 million participants. The company is still struggling to compete with other main social media sites.
Reddit’s latest valuation appears small next to Twitter’s $51.7 billion valuation as well as 206 million monetizable daily active users as of the second quarter. The company’s revenue grew 74% year over year in the quarter. After a $1.38 billion loss in the year-ago quarter, the company posted a $65.6 million profit. Users who view advertising on the site grew by 11% in the second quarter.
Twitter continued to expand its operations during the quartet. It introduced its first subscription service. This service gives users access to an Undo Tweet button and other features. Twitter also released its Spaces audio chat feature on mobile devices for all users with at least 600 followers. The company also announced a Tip Jar feature. This feature allows users to send money to others on the site.
For all of 2021, the company expects headcount as well as total expenses to jump at least 30% and that revenue will grow faster than expenses.
It is even harder to compare its results with the results of Facebook. The social media giant had 1.9 billion daily active users in June.
Twitter also has its own advantages. Its unique ability to host users who pioneer a new content type, like the meme, or drive up the popularity of certain kinds of content is what makes Twitter stand out, according to Alexis Ohanian Reddit’s co-founder and former executive chair.