Reddit is the only social network that is experiencing massive growth

Reddit is probably the only social network that is experiencing significant growth in new users right now.

In the second quarter of this year, the American entertainment and news platform, which operates on the principle of a forum, recorded a 51% growth in daily active users globally and a 59% growth in the USA. This is an enormous difference to competitors in the field of social networks.

The Financial Times reported that the number of daily active users of the X network grew by 1.6 % during the same period. Meta's social networks, i.e. Facebook, Instagram and Threads, recorded 7% growth, while TikTok, the strongest player since 2018, even reported no increase in users at the end of last year. Since then, TikTok, which is still privately held, has not released data on the number of users on the platform.

Reddit is growing fast, but the platform is relatively small, with 342 million regular users. Meta recorded 3.3 billion users when the results were last published.

The metric of daily active users is very important for social networks, because it shows how much users want to use and have some kind of relationship with the platform. In addition, this number often means more advertising revenue.

Reddit, which became a publicly traded company in March of this year, has released results for the second time as a public company. They recorded $281 million in revenue, a 54 percent year-over-year increase. The good results brought additional demand for advertising on the platform and licensing agreements with OpenAI and Google.

"The growth in the number of users continues", he told the shareholders Steve Huffman, Reddit's co-founder and chief executive officer. "More and more people are coming to Reddit to find their interests, express opinions, and join the community", added Huffman.

One of the driving forces behind Reddit's success is certainly the fact that users perceive it as an online search engine. "Reddit users perform 1 billion searches per month”, says Huffman. Reddit also beat all other social networks in terms of monthly active users in the last year. Their web and mobile app saw 39% growth in May, while Facebook saw an 8 % drop in monthly active users.

We can expect the partnership between OpenAI and Reddit to add Reddit content to ChatGPT, which is just one more step in the platform's growth.

Earlier this month, Google rolled out a major search upgrade that has a very positive impact on user-generated content. After years of watching users add “Reddit” to the end of their searches, Google adopted a new way of using the search engine, and now both Reddit and the other largest platform like Quora are seeing increased visibility.

Let's remember that Google and Reddit signed an agreement in February, which allows Google to train its UI models with data from Reddit.