There’s so much hype around AI. What tangible outcomes did you find while scoping out Memorable?
That was a big part of our evaluation and due diligence, actually talking to customers and looking at case studies of the impact of those who work with Memorable. It has an excellent reputation for driving value for advertisers, giving very specific insights into creative organization.
That’s a great opportunity for driving performance for advertisers, as well as, frankly, automating part of the campaign setup and onboarding process.
Has news of the acquisition prompted any new buyers to get in touch?
There’s excitement about it, and some of our customers are their customers, so it makes a lot of sense for them. They’ve already had positive experiences, so they’re excited that this will become just the core capability. It’s been really positively received.
Can you quantify the impact of AI on Reddit’s business?
We’re slowly adding pieces like the AI-generated headlines. Then there are the raw productivity tools that make the productivity of our sales team even better.
We do watch productivity metrics. We do watch revenue per sales, FTE [full-time equivalent] and the productivity of our teams, how many accounts they can handle, etc. We have seen that grow, and there’s a lot more headroom.
Are there other AI acquisitions on the horizon?
We will continue talking and looking at companies that can accelerate our roadmap.
Other revenue in your earnings grew by 690% year over year to $28.1 million, nearly 10% of your total profit and loss, thanks to deals with Google and OpenAI to license Reddit data for their AI products. Do you want to do more deals with AI search engines?
AI is a nascent tech that will be transformational. We believe in the open internet and users getting access to information. What’s happened is that the world of search and AI and data all collided, so it’s become more complicated. We have said publicly that we are stewards of Reddit’s data, and if you want to use Reddit data, we need to have a conversation about that. We are open the partnerships. We’ve actually done a lot of partnerships, big and small, over the past six months.
It’s hard for me to say how many more will be able to do because what’s important is being able to come to an alignment about Reddit’s terms and policies, as well as commercials.
Do you plan to grow the portion of revenue coming from licensing deals? The danger is being reliant on companies cutting you checks, and then those checks stop coming.