Reddit Beat Earnings Again. Wall Street Is Still Watching the Wrong Users

Revenue climbed 53% to $895 million. Advertising revenue grew 54%. DAUq reached 130.3 million, up 12%. Global ARPU rose 36%, while U.S. DAUq fell 2% but U.S. ARPU jumped 53%.

Three months ago, I wrote about what I thought Wall Street was missing in Reddit’s user-growth story.¹

The argument was pretty simple.

Not every Reddit user has the same economic value.²

At the time, the market was worried about slowing Daily Active Unique growth, particularly among logged-out users arriving through search.

My argument was that investors were…