Reddit's Data Licensing Revenue Grew 24% to $43 Million, With OpenAI and Google as Its Two Biggest Buyers. Here's Why That Number Is So Tiny.
The company's data is valuable for AI training, but advertising is the bigger opportunity.
Overview
Reddit (NYSE: RDDT) just reported its eighth consecutive quarter of revenue growth greater than 60%. But its data-licensing business remains a footnote on the income statement, accounting for only 5% of its $805 million in second-quarter revenue.
Data licensing sits inside "other revenue," which totaled $43 million in the second quarter, up 24% year over year. Still, advertising remains the company's fastest-growing and biggest long-term opportunity, and that's where management continues to focus its efforts.
Image source: Getty Images.
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Originally published at www.fool.com.
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