That means Reddit is trying to run a high-margin business in a low-margin space. As ad blockers get better, that may stop working. At one time, it was expensive to run a service with a large user base. Technology has progressed, and it no longer is.

Craigslist wiped the entire classified ad industry and much of the newspaper industry off the face of the earth merely by being the low-cost provider. Ad-supported businesses should be afraid. Very afraid.

As for Reddit, the VCs may have to take a haircut.