Reddit has released its latest earnings report, highlighting significant growth in both user numbers and revenue. The results reflect the platform’s ongoing efforts to reshape its advertising business and expand its global reach.
User Growth: Daily and Weekly Metrics Up
Reddit now boasts 108 million daily active users (DAUs), adding nearly 7 million since its last report. The growth trend has been consistent, particularly in the U.S., where user numbers are rebounding.
One of the most notable growth areas is Brazil, where Reddit’s DAUs have hit a record high—rising by nearly 80% year-over-year. The platform attributes this international success to improvements in machine translation (MT), which now supports 13 languages, up from 8 in Q4. New additions include Vietnamese, Thai, Polish, Romanian, and Latin American Spanish.
“Machine translation continues to be an important part of our international strategy,” Reddit said in the report.
In addition to daily users, Reddit’s weekly active users have also surged to over 400 million, marking a 31% year-over-year increase. This ratio—almost 4x its DAUs—is unusual in the social media space. For context, Snapchat has 460 million DAUs and 900 million MAUs (monthly active users), a ratio closer to 2x.
This indicates that many Reddit users visit the platform sporadically, often to find specific answers or participate in topic-based discussions, rather than logging in daily. Supporting this, Reddit also noted a 23% increase in logged-in users and a 38% rise in logged-out visitors.
However, this browsing pattern presents challenges. It suggests a less stable, harder-to-target audience, which is not ideal for advertisers. It also underscores Reddit’s dependence on Google search traffic—meaning if Google changes how it ranks Reddit content, the platform could see a sharp decline in casual traffic, which could impact its value to brands.
Revenue and Ads: A Strong Quarter
Despite the challenges, Reddit is seeing strong returns. The company reported $392 million in revenue for the quarter, a notable year-over-year jump.
While Reddit is growing internationally, the majority of its revenue still comes from the U.S. The company hopes to diversify this by developing stronger monetization strategies for international users, but for now, its U.S. base remains central.
One promising development on the ad front is Reddit’s progress with Dynamic Product Ads, currently in beta testing. These ads use machine learning to serve personalized product promotions within relevant subreddits, helping advertisers target consumers when they’re actively seeking recommendations.
Reddit reports that improved machine learning models are driving better ad performance, increasing return on investment for brands using the platform.
Outlook: Promising, But Cautious
Overall, Reddit’s report reflects a platform in transition—growing steadily and maturing as a business. The numbers are encouraging, especially as Reddit positions itself as a go-to destination for real conversations and authentic insights, a feature increasingly valued by internet users.
Still, questions remain about Reddit’s long-term growth potential. The platform is still heavily reliant on its core user base and outside traffic sources like Google. Whether it can expand beyond this and become a daily habit for a broader audience remains to be seen.
For now, though, Reddit appears to be on the right path toward realizing more of its commercial potential.
