Reddit Inc.
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.15%.
Did RDDT Beat Earnings? Q1 2025 Results
Reddit delivered a standout first quarter, posting earnings per share of $0.13 against a consensus estimate of $0.01, a beat of more than 870%, while revenue climbed 61.5% year-over-year to $392.36 million, ahead of the $369.68 million analysts had expected. The headline story behind the blowout was the platform's accelerating advertising engine, with performance advertising now accounting for roughly 60% of total ad revenue and driving more than half of the quarter's growth, helping lift Adjusted EBITDA to $115.27 million at a 29.4% margin compared to just $10.03 million a year ago. User engagement reinforced the momentum, with daily active users reaching 108.1 million, up 31% year-over-year, and international markets leading the charge at 41% growth. The company also swung to GAAP profitability, recording net income of $26.16 million versus a net loss of $575.07 million in the prior-year period. Looking ahead, Reddit guided Q2 2025 revenue of $410 million to $430 million, signaling confidence that its combination of authentic community content and expanding global reach can sustain the trajectory.
- 61% YoY revenue growth marking third consecutive quarter of 60%+ growth
- DAUq grew 31% YoY to 108.1 million; WAUq grew 31% YoY to 401.3 million
- Performance advertising accounted for about 60% of total ad revenue and drove more than half of Q1 growth
- International revenue grew 82% YoY driven by strength in UK and EMEA region
- ARPU increased 23% YoY to $3.63 globally
- Gross margin expanded 190 bps YoY to 90.5%
- Revenue grew 3.2x as fast as total adjusted costs year-over-year
- Over 70% incremental Adjusted EBITDA margin for the fifth consecutive quarter
- ML model improvements driving improved targeting and ad relevancy
“Over 400 million people now come to Reddit each week—because when you want real opinions, you turn to real people. 20 years in, I have never been more excited about Reddit's future than I am now. We're growing and building a more valuable platform for community and human perspective.”
Reddit CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2025, Reddit estimates revenue in the range of $410 million to $430 million and Adjusted EBITDA in the range of $110 million to $130 million. Management acknowledged that ever-shifting macro environments create both challenges and opportunities but expressed confidence that Reddit is well-positioned to meet the moment given users' need for connection and information in uncertain times. The company plans to expand its international playbook to additional markets and continue investing in search, machine translation, core platform improvements, and its advertising technology stack.
RDDT YoY Financials
RDDT Revenue by Segment
RDDT Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.