Changes to Reddit’s ads manager model are expected to produce roughly a 20% reset in reported audience size, according to Piper Sandler data cited by Investing.com.
- Reddit’s August user increase was primarily driven by Feed users, the report stated.
- U.S. users increased 5.2% in August, but growth in the segment continued to decelerate, it said.
- Reddit crossed 500 million weekly active uniques (WAUq) in Q2, rising 24% year over year.
Reddit Inc. (RDDT) shares were in focus on Thursday after Piper Sandler data reportedly pointed to strong user growth in August.
According to Investing.com, citing the Piper Sandler report, the platform's average users increased by 8% from July, marking the strongest monthly growth rate so far this year. This compares with a 2% decline recorded in the previous month, according to the data cited in the report.
International Growth Leads The Rebound
Reddit’s overall audience growth accelerated to 18% year-over-year in August, up from 12.8% in July. According to the report, international users were the standout, growing 29.3% year over year, up sharply from 19% growth in July. U.S. users increased 5.2%, but growth in the segment continued to decelerate, per the report.
Piper reportedly attributed the August increase primarily to Feed users, which added 79 million, while Conversation users declined by 1 million. The firm also noted that changes to Reddit’s ads manager model are expected to produce roughly a 20% reset in reported audience size.
What Reddit's Own User Growth Trend Shows
The August trend broadly aligns with Reddit’s latest reported user data. In the second quarter (Q2), international daily active uniques (DAUq) rose 28% year over year to 77.1 million, compared with 6% growth in U.S. DAUq to 53.2 million. Global DAUq increased 18% to 130.3 million.
Piper’s August audience measures are third-party estimates and are not directly equivalent to Reddit’s quarterly DAUq metric.
Reddit crossed 500 million weekly active uniques (WAUq) in Q2, with WAUq rising 24% year over year to 514.6 million. Revenue grew 61% to $805 million, including an 84% increase in international revenue to $167 million.
Those figures make international user growth particularly relevant as Reddit continues to expand monetization outside the U.S.
What Retail Investors Think About RDDT Stock
Retail sentiment for RDDT stock on Stocktwits remained in 'bearish' territory.
RDDT shares traded 5% higher in Thursday’s opening trade. The stock has fallen 36% so far this year. The Vanguard Morningstar Mid-Cap Growth Index Fd ETF (VOT), which holds Reddit stock, has gained 5.2% over this period.
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