WEBVTT - Reddit COO Jen Wong Talks Earnings, Advertising 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news delivering a better than

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<v Speaker 1>expected forecast was Reddit social media platform has benefited from

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<v Speaker 1>data licensing deals of course of open Ai and Google,

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<v Speaker 1>but it's really about growing advertising business that drives At

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<v Speaker 1>this time. We spoke the Reddit COO Gen Wong.

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<v Speaker 2>I think a lot of the things that we're doing

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<v Speaker 2>are working. You know, you saw our active advertiser account

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<v Speaker 2>grow seventy five percent year over year in Q three,

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<v Speaker 2>and I think that's the result of our go to

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<v Speaker 2>market and acquisition investments, as well as making our platform

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<v Speaker 2>more automated and simple to use, as well as really

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<v Speaker 2>delivering more performance, particularly at the mid and lower funnel

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<v Speaker 2>where a lot of mid market and SMB businesses like

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<v Speaker 2>to transact. We also grew nine out of fifteen verticals

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<v Speaker 2>over fifty percent year over year, and I think that

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<v Speaker 2>shows the diversification of our business, how robust it is

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<v Speaker 2>across you know, every vertical and every objective, so every

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<v Speaker 2>advertiser can find success on our platform. So those investments

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<v Speaker 2>that we've been made are really paying off, and.

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<v Speaker 1>The investments in translation really paying off. When you think

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<v Speaker 1>about diversification internationally, how is that still working? How much

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<v Speaker 1>low hanging fruit is there to grow outside the United States.

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<v Speaker 2>Well, I think there's this enormous headroom outside of the US.

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<v Speaker 2>Our traffic today is about fifty five percent outside of

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<v Speaker 2>the US and forty five percent in the US, and

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<v Speaker 2>the rest of the world has been growing. And every

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<v Speaker 2>country that is a non English country is just an

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<v Speaker 2>opportunity to build another Reddit. And the process of doing

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<v Speaker 2>that starts with machine translation, using AI to translate universal

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<v Speaker 2>conversations so that somebody in France or Germany who operates

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<v Speaker 2>in a non English language can have access to great

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<v Speaker 2>content and communities on Reddit. And then of building local

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<v Speaker 2>communities so that if you're in France you have a

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<v Speaker 2>local bred community, German in Germany, your local football communities

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<v Speaker 2>so that it feels local, your city communities. All of

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<v Speaker 2>that is opportunity for us, and opportunities to build another

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<v Speaker 2>Reddit for every language in culture.

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<v Speaker 1>It's really interesting that AI is really the tailwind here.

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<v Speaker 1>Whether it's the ability to serve your companies, those that

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<v Speaker 1>are advertising with you that much more sophisticated applications, the

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<v Speaker 1>way in which they're able to advertise with you, whether

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<v Speaker 1>or not it's the AI that's helping you do translation

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<v Speaker 1>but also we know that a big part of the

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<v Speaker 1>business has started to become how you're used by AI

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<v Speaker 1>LM producers. How is that a stage of priority? Can

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<v Speaker 1>you just weigh it up for us, the prioritization of

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<v Speaker 1>advertising versus the prioritization of making these deals with big

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<v Speaker 1>llms if you already have done with Google and open Ai.

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<v Speaker 2>Yeah, our core business is advertising. It's a business model

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<v Speaker 2>that has a lot of tam and you know, it's

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<v Speaker 2>a big addressable market. I think we've a lot of

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<v Speaker 2>headroom there. Our ad platform is growing, our marketplace is growing,

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<v Speaker 2>as I said, sixty percent plus year over year, and

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<v Speaker 2>we really like our roadmap there. There are thousands more

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<v Speaker 2>advertisers that can be on our platform, in addition to

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<v Speaker 2>more verticals and more geographies to come onto our ad platform.

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<v Speaker 2>So we see a lot of opportunity there across the

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<v Speaker 2>funnel in automation, in ad formats, and even in delivering

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<v Speaker 2>more performance for our advertisers. So that's our core business

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<v Speaker 2>and that's where we're focused.

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<v Speaker 1>What about the AI chatbots and then actually helping you

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<v Speaker 1>in terms of driving traffic, When does that really start

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<v Speaker 1>to bring to bear?

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<v Speaker 2>You know, that's a space that is just under incredible

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<v Speaker 2>heavy construction because it's also new and it's changing. The

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<v Speaker 2>UI is changing, the products are changing, you know, how

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<v Speaker 2>we think about you know, the use of AI, even

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<v Speaker 2>on our platform on Reddit is changing. So you know,

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<v Speaker 2>it's hard to say, I think, but I think, you know,

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<v Speaker 2>I would say the relationships that we have with the

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<v Speaker 2>lms are not partnerships. The relationships are really healthy and

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<v Speaker 2>we continue to learn a lot through these partnerships. I think,

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<v Speaker 2>you know, we've certainly learned that our data is highly appreciated.

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<v Speaker 2>It's highly used and cited. I think we're the top

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<v Speaker 2>most sourced domain in Q three, So I think you know,

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<v Speaker 2>we're watching that area very very closely as it evolves.

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<v Speaker 1>Gen Wong readit, COO, they're talking of relationships with l lms.