Reddit Inc, known for its English-language platform, is expanding globally with a focus on countries like India and Brazil. The company aims to increase user growth and tap into new advertising opportunities in these international markets.
In an interview with CNBC, Reddit’s COO Jen Wong highlighted the potential for growth outside the U.S., where currently about half of Reddit’s users reside. This sets Reddit apart from other platforms, where a larger percentage of users are international.
To cater to its global audience, Reddit has introduced an AI-powered translation feature to make the site accessible in multiple languages. By the end of the year, Reddit plans to support up to 30 languages, allowing for more localized engagement. Wong pointed out the growth potential in countries like India, where interests in topics like cricket and Bollywood are popular among users.
In countries like the U.K., Philippines, India, and Brazil, Reddit is working closely with moderators to enhance local community content. This strategy aligns with Reddit’s goal of establishing a strong presence in regions with a highly engaged internet population.
Despite half of its users being outside the U.S., international markets contribute only 17% of Reddit’s revenue, indicating a significant opportunity for growth. Wong mentioned that Reddit initiates its advertising efforts with cross-border campaigns and later focuses on local ad campaigns once it reaches about 10% of a country’s internet users.
India, in particular, is a key market for Reddit due to its English-speaking user base and interest in community-driven topics. The company is closely monitoring its growth in emerging markets to develop tailored advertising solutions.
In the third quarter, Reddit reported revenue of $348.4 million, surpassing analyst estimates, with an EPS of 16 cents per share. Daily Active Uniques (DAUq) increased by 47% to 97.2 million. For the fourth quarter, Reddit expects revenue between $385 million and $400 million.
Jim Cramer expressed optimism about Reddit’s potential during CNBC’s “Mad Money Lightning Round,” highlighting confidence in the company’s future growth.
As of the last check, RDDT stock was trading at $137.02, up 1.17%, and had surged 172% year-to-date.
In conclusion, Reddit’s global expansion strategy, with a focus on markets like India and Brazil, reflects its commitment to driving user growth and exploring new advertising opportunities worldwide. With its innovative features and targeted strategies, Reddit is poised for continued success in international markets.