Reddit has published its latest earnings report, showcasing consistent user growth and a notable year-over-year revenue boost. This update underscores the platform’s ongoing transformation as it sharpens its advertising strategy.
Daily and Weekly User Growth
Reddit currently has 108 million daily active users (DAUs), gaining nearly 7 million since its last report. The platform’s data shows steady progress, especially in the U.S., where engagement is regaining momentum.
One particularly strong market is Brazil, where daily user numbers have climbed nearly 80% year-over-year to hit a record high. This international growth is largely credited to Reddit’s machine translation (MT) improvements, now supporting 13 languages—up from 8 in the previous quarter. New additions include Vietnamese, Thai, Polish, Romanian, and Latin American Spanish.
“We see machine translation as a vital component of our global expansion strategy,” Reddit stated.
In addition to DAUs, Reddit now reports over 400 million weekly active users, representing a 31% increase compared to last year. This 4x ratio of weekly to daily users is uncommon in social media. For instance, Snapchat maintains roughly a 1.8x ratio between its DAU and MAU numbers.
This suggests Reddit functions more as a utility platform—people visit for specific questions or community insights rather than daily browsing. Supporting this, Reddit also recorded a 23% increase in logged-in users and a 38% rise in logged-out visitors.
While this usage pattern affirms Reddit’s value as a destination for real discussions and answers, it also raises some concerns. The platform depends heavily on Google for traffic. If search algorithms change, it could significantly affect Reddit’s visibility and advertising performance.
Revenue and Ad Strategy
Reddit generated $392 million in revenue this quarter, marking a strong year-over-year rise. Though it’s growing globally, most revenue still comes from the U.S., highlighting the need to better monetize international markets moving forward.
The company also reported advancements in advertising, particularly with Dynamic Product Ads, which are currently in beta. These ad formats allow brands to promote products within relevant subreddits, connecting with users who are already searching for genuine recommendations.
Reddit’s improved machine learning is further enhancing ad targeting, delivering stronger ROI for advertisers—especially in eCommerce-driven campaigns.
Final Thoughts
Reddit’s update reflects the platform’s steady evolution from niche online community to a more commercial, ad-oriented model. With user growth on track and ad tools improving, the platform is positioned for continued success.
However, challenges remain. Its user base is still tightly concentrated among core audiences, and its reliance on Google traffic could be a weak point. Long-term growth will depend on international monetization and building a more consistent daily user presence.
Still, Reddit appears to be making the right moves—finding new ways to create value for users and advertisers alike.
