Reddit Inc (NYSE:RDDT) is accelerating its global expansion, focusing on international markets such as India and Brazil to drive user growth and unlock advertising opportunities. The platform, traditionally known as an English-language hub, is making strides in broadening its reach with new features and targeted strategies.
In an interview with CNBC, Reddit COO Jen Wong highlighted the potential for international user growth, noting that approximately half of the platform's current users are outside the U.S.
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This contrasts with other platforms, where 80-90% of users are international, CNBC reports.
To cater to global audiences, Reddit launched an AI-powered translation feature that automatically translates the site into various languages. By year-end, the platform aims to support 20-30 languages, enabling localized engagement. Wong emphasized the growth potential in countries like India, where topics such as cricket and Bollywood resonate strongly with users.
In fast-growing markets like the U.K., Philippines, India, and Brazil, Reddit has started meeting with moderators ("mods") to enhance local community content. This aligns with its strategy to build a strong presence in regions with a large, engaged internet population.
Despite having 50% of its user base outside the U.S., international markets account for just 17% of Reddit's revenue, highlighting a significant opportunity for growth. Wong told CNBC that Reddit begins its advertising efforts with cross-border campaigns, such as European brands targeting U.S. audiences. Once Reddit reaches about 10% of a country's internet users, the platform can focus on local ad campaigns, which it sees as a significant growth driver.
India, a key market, offers immense potential due to its English-speaking user base and interest in community-driven topics. Reddit is monitoring its growth closely in emerging markets to build localized advertising solutions.
Reddit reported third-quarter revenue of $348.4 million, topping the consensus estimate of $311.42 million. EPS of 16 cents per share surpassed the analyst consensus estimate for losses of 8 cents. Daily Active Uniques (DAUq) increased by 47% to 97.2 million. Reddit expects fourth-quarter revenue of $385 million—$400 million versus the $356.716 million estimate.
Jim Cramer expressed optimism about Reddit during CNBC's "Mad Money Lightning Round," emphasizing confidence in the company's potential.
Price Action: RDDT stock traded higher by 1.17% to $137.02 at the last check on Wednesday. Reddit stock surged 172% year-to-date.
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