Reddit has published its latest earnings results, showing an increase in users and a significant jump in year-on-year revenue, as the platform continues to reshape its ad business.
Daily and Weekly Active Users
Reddit is now up to 108 million daily active users, adding almost 7 million more since the last report. Reddit’s growth rate has remained consistent, particularly in the U.S., which saw renewed momentum in Q1.
Brazil has been a standout market, with daily active users growing by almost 80% year-over-year. Reddit attributes much of its international growth to evolving machine translation tools.
“Machine translation continues to be an important part of our international strategy. MT is available in 13 languages, up from 8 in Q4, including Vietnamese, Thai, Polish, Romanian, and Latin American Spanish.”
Reddit’s weekly active user count now exceeds 400 million, a 31% year-over-year increase. This 4x increase from daily users is notable compared to other social platforms, like Snapchat, which usually see about a 1.8x increase between DAU and MAU.
This suggests users often visit Reddit for specific, transactional needs—such as finding answers—rather than daily browsing. Supporting this, Reddit reported a 23% increase in logged-in users and a 38% rise in logged-out visitors.
However, this behavior presents challenges. A less stable audience makes ad targeting harder, and Reddit remains heavily dependent on Google referrals. If Google adjusts its traffic direction, Reddit’s weekly active user numbers could drop significantly, affecting brand value.
Reddit as a Source of Insight
Despite these concerns, more people are turning to Reddit for real insights, as Reddit results frequently appear in Google searches. This trend is helping to drive both traffic and revenue.
Revenue and Monetization
Reddit generated $392 million in revenue for the quarter. Although international user growth is strong, the platform remains heavily reliant on the U.S. for revenue. Monetizing global audiences remains a future opportunity.
Ad Products and Machine Learning
Reddit reported “meaningful progress” on its Dynamic Product Ads, currently in beta testing. These ads allow brands to feature products in related subreddits, targeting users searching for recommendations.
Reddit’s improved machine learning models are also boosting ad performance, particularly in shopping promotions, enhancing ROI for advertisers.
Outlook
Overall, Reddit’s report shows steady growth and business maturity. While future expansion beyond its core user base and dependence on Google traffic remain questions, Reddit appears to be on the right track to maximize its potential.
