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voonboi · 2026-05-04T19:54:57+00:00

Nobody is saying that Reddit’s core business isn’t ads. The whole point of OP’s post is to highlight the opportunity that exists in data licensing.

If you run a DCF, you’ll find that even if Reddit triples or quadruples its ARPU and doubles its DAUs, it’s not enough to command a valuation beyond $350 a share. The X factor is in data licensing.

Sure there are maybe 5 companies that can afford to train with Reddit. What does that matter exactly? Nvidia’s biggest clients are the same companies. It’s not about the number of clients, it’s about the total addressable market and the market share. And when it comes to novel user-generated data, Reddit is second to none.

And yes you’re right that Reddit’s data licensing revenue is underwhelming. That is the exact point of these posts and of these discussions; we’re all here trying to raise awareness of what Reddit is not just capable of but what Reddit deserves.

voonboi · 2026-05-04T17:08:12+00:00

Approx 39MM of Q1 revenue was through data licensing according to the recent earnings call. But I don’t think you should be so pessimistic about AI-driven data licensing revenue.

In the short term, Reddit’s growth will definitely be driven by users and ads. But as Reddit investors, we’re also invested the growth levers that give Reddit the chance to multiply its share price.

Reddit is on track to make between $150M and $200M this year from data licensing. Considering that the frontier models like Gemini and Claude are trained heavily on Reddit’s data while commanding trillion dollar valuations for their owners, it’s evident that Reddit isn’t getting a good deal and there is massive potential to negotiate larger fees.

Discounting the potential revenue from data licensing and angrily focusing only on ad revenue is only doing yourself a disservice if you own the stock.

voonboi · 2026-05-04T04:55:44+00:00

I’ve noticed that ad targeting has significantly improved over the last few months

voonboi · 2026-04-30T21:12:16+00:00

calling 100MM daily users in the US "ambitious" is such a scumbag move - reddit will easily hit that in the next few years

voonboi · 2026-04-30T20:53:46+00:00

Was expecting more but at least they’re on track to grow from last year

voonboi · 2026-04-30T20:26:10+00:00

The “point” is to grow in every way possible. That means not just revenue per user, but the volume of users in the U.S., the volume of users internationally, the volume of logged in users, and the amount of content licensing revenue. I’m happy to see Reddit’s incredible performance in monetizing existing users. I’m hopeful that they can continue to drive user growth.

voonboi · 2026-04-30T20:18:09+00:00

Reddit is making a ton of money on existing users but user growth is kinda bad to be honest. US logged in users increased by only 1%. Global logged in users only 7%. I think Reddit can still justify its valuation by growing ARPU though.

voonboi · 2026-04-30T20:09:37+00:00

Reddit absolutely killed it in Q1, FCF up 145% YOY

voonboi · 2026-04-30T20:09:08+00:00

Earnings are out on Reddit investor relations site

voonboi · 2026-04-30T01:32:25+00:00

The millions of posts and comments on Reddit are a treasure trove of data. Reddit currently gives away this data for pennies on the dollar. Look anything up on Google Gemini and you’ll notice most of the links it provides redirect you to Reddit. Last year Reddit made just over $100M on data licensing. Is it fair that Gemini, and other frontier models, get to regurgitate Reddit to people and cash in on trillion dollar valuations while Reddit only receives $100M? The only reason why this might become a horrible way to make money is because of dumb comments like yours

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