Reddit announced Monday that it has raised $300 million at a $3 billion valuation, up from a $1.8 billion valuation in 2017, when the company took in a $200 million investment.
Why it matters: Reddit has focused its efforts over the past year on cleaning up its platform to build a better advertising model.
- The 23-year-old social platform has been criticized in the past for lax regulation around hate speech, piracy, harassment, and even more recently, election interference — things advertisers don't like to be associated with.
Between the lines: Reddit has roughly 330 million monthly active users (MAUs), which means it's about the same size as Twitter — but its efforts to monetize those users haven't been great yet.
By the numbers: CNBC reports that the company's annual revenue is roughly $100 million, meaning each user is worth around 30 cents. By comparison, average revenue per MAU, as of the fourth quarter of 2018...
- Facebook: $7.37
- Twitter: $2.83
A big part of Reddit's value to advertisers is the demographic of its audience, which is mostly users ages 18–34. On its website, Reddit says 63% of its users are under 25 and 87% are under 35.
The big picture: The company has pushed aggressively over the past year to both clean up its site and focus on more lucrative advertising opportunities, primarily video.
- The company said last year that it was averaging over 1 billion native video views and almost 1 million video uploads each month on its platform.
- It credits a recent redesign for being a significant driver for adoption for both video creators and consumers, saying that the redesign helped foster 50% increase in video posts over the "old" Reddit.
Tune in: Reddit co-founder Alexis Ohanian will sit down with Axios' Dan Primack today on his Pro Rata podcast. Follow Dan on Twitter to check it out once it's posted this afternoon.