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Business Operations Business Models

How Does GIPHY Make Money (Business and Revenue Model)

The GIPHY business model

How Does GIPHY Make Money?
Here’s what you should know:
  • What is GIPHY, and how does GIPHY work?
  • How does GIPHY make money?
  • Partnership Deals (Licensing Content)
  • GIPHY Subsidiaries, Acquisitions, and Exits
  • GIPHY profit and revenue
  • What is the GIPHY business and revenue model?
  • GIPHY funding, net worth, and valuation

How does GIPHY make money and how is it free to use? Well, here is a full, in depth, breakdown of their main revenue stream, as well as the GIPHY business and revenue model, how much GIPHY makes per year, and how GIPHY works.

What is GIPHY, and how does GIPHY work?

Giphy, styled as GIPHY, branded as the “GIF search engine” is an online database and search engine of licensed gifs users can share across social media platforms such as Facebook Messenger, Instagram, Snapchat & more.

Founded in 2013 by Alex Chung and Jace Cooke, GIPHY has gone on to get acquired by Meta Platforms, Inc. (formally known as Facebook Inc.) in May 2020, for a reported $400 million.

Since that time, GIPHY now has over 10 billion pieces of GIPHY content being served to more than 700 million daily users.

So, how does GIPHY work? Users can search for GIFs and stickers by typing a keyword(s) into the GIPHY search bar. Once they find a GIF or sticker from the search results, they can then copy and paste it into a text message and or share it on social media.

Note users do not need to create an account to use GIPHY. Although the only drawback of this is those without accounts cannot favorite or create GIFs of their own.

Some of GIPHY’s competitors include Imgur, Tenor, Gfycat, and other GIF search engines.

GIPHY App in Apple App Store | GIPHY Business Model | How Does GIPHY Make Money? | How Does GIPHY Work?
Source: Apple App Store | GIPHY

How does GIPHY make money?

According to GIPHY’s about page, GIPHY has over 10 billion pieces of licensed GIPHY content in its database and more than 700 million daily users.

So how does GIPHY make money off of all that licensed content and users and if the service they offer is free?

Below is a breakdown of how much money GIPHY makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here is how GIPHY makes money on 2022

GIPHY has a revenue model that makes money in just one (1) way; licensing its content through partnership deals.

#1. Partnership Deals (Licensing Content)

GIPHY makes money by partnering with companies and brands that want to use their licensor’s GIFs for commercial use. For things such as their marketing promotions, campaigns, etc.

To date, Giphy has partnered with more than 200 companies and brands including Disney, Spotify, Calvin Klein, GE, Pepsi, and more.

According to GIPHY’s User Terms of Service, “[GIPHY] and our licensors own and retain all proprietary rights in the Services.” And notes that all of GIPHY’s content is free to use for personal and non-commercial use only. But as for any of GIPHY’s content being used for commercial use (making money off of it) – that’s where the licensing deals come into play.

In short, companies that want to use GIPHY’s content, commercially, will need to pay GIPHY and their licensors a fee to use it.

GIPHY Spotify Partnership | GIPHY Business Model | How Does GIPHY Make Money? | How Does GIPHY Work?
Source: GIPHY

Note: To date, Giphy has partnered with over 200 companies and brands.

GIPHY Subsidiaries, Acquisitions, and Exits

Aside from GIPHY being acquired by Facebook for $400 million, GIPHY has had its own fair share of acquisitions as well.

To date, Giphy, Inc. has made a total of 5 acquisitions.

GIPHY Acquisitions | GIPHY Business Model | How Does GIPHY Make Money? | How Does GIPHY Work?
Source: Crunchbase | GIPHY

GIPHY profit and revenue

Meta Platforms, Inc., the parent company of GIPHY, has not released any official revenue numbers on GIPHY since they acquired the company back in May 2020.

Note: Because Meta Platforms, Inc., formally known as Facebook Inc., (parent company of GIPHY) is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Facebook’s publicly released financial reports, including annual reports, through Facebook’s investor section on their website.

What is the GIPHY business and revenue model?

GIPHY makes money through a few revenue models that they combine within their company, they are:

  • Licensing business model
  • B2B2C (partnerships) business model
  • Mergers & acquisitions (M&A) business model

GIPHY funding, net worth, and valuation

According to GIPHY’s Crunchbase profile, GIPHY has raised $150.9 million over 4 rounds.