ARPU (Average Revenue Per User)

ARPU, average revenue per user, is a metric that divides a company's revenue over a period by its number of users, giving a per-user measure of how effectively the business monetises its audience. Reddit reports an "average revenue per unique" computed as quarterly revenue in a geography divided by its average daily active uniques over that quarter, and it breaks the figure out by region rather than publishing a single headline number.

The metric matters because it shows how much money Reddit extracts from each visitor and how far that lags more mature advertising businesses. In the final quarter of 2023, global ARPU was reported at roughly 3.42 dollars, with the United States far higher at about 5.51 dollars and the rest of the world far lower at around 1.34 dollars, reflecting the strength of the US advertising market. Reddit's overall ARPU has historically been well below that of larger social platforms, so investors watch the figure as a gauge of the company's room to grow revenue from an audience it has already built.