In Q1 2025, Reddit posted a total revenue of $392.4 million, a 61% increase year-over-year. That beat Wall Street’s forecast of $370 million, signaling that the platform’s monetization efforts are gaining traction.

Advertising continues to be Reddit’s core revenue engine, bringing in $358.6 million, up 61% year-over-year, according to its earning call. Reddit attributes this growth to more targeted ad offerings and an expanding logged-in user base.

User growth is up, and so are logged-in accounts

Reddit’s user numbers are climbing. Daily active uniques (DAUq) reached 108.1 million in Q1, up 31% compared to the same quarter last year. Weekly active users are now over 400 million. That’s a big deal for advertisers because it means more inventory, impressions, and targeting opportunities.

A big part of this growth is Reddit’s visibility on Google. In recent months, Google search changes have increasingly surfaced Reddit posts in results. Reddit has seen a surge in traffic from people searching for community-driven answers — a result of Google prioritizing Reddit threads in its search rankings. Reddit has leaned into this by improving its on-site features and nudging visitors toward creating accounts, which makes them more valuable to advertisers. 

With Reddit’s user base growing, the company has introduced new ad placements between comments, aiming to boost performance. Advertisers can now place ads in the middle of conversations.

AI plays a growing role in how Reddit is evolving search

The company is also betting big on AI. Reddit’s AI-powered search feature, Reddit Answers — launched in December 2024 — is now powered by Google Cloud’s Gemini models. This tool allows users to ask questions and get AI-generated summaries based on multiple Reddit threads.

Reddit claims Reddit Answers now boasts 1 million weekly active users. The company plans to roll this tech into its broader search experience later this year. Instead of surfacing endless threads and posts, Reddit will use AI to replace long lists of threads with summarized answers.

Reddit’s position on AI: useful, but not a replacement

Reddit CEO Steve Huffman said Reddit is not trying to compete head-on with LLM-powered search engines like OpenAI’s or Perplexity’s. Instead, Reddit wants to remain a source of “subjective, authentic, messy, multiple viewpoints.” According to Huffman, “Reddit communities and conversations will be an alternative to AI search answers.”

Reddit’s expectations for the next quarter of 2025

Reddit expects revenue to land between $410 million and $430 million. This figure is also ahead of analysts’ projections.

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