05/05/2025
Reddit’s Q1 2025 earnings are out, and one thing’s clear: Google’s preference for the platform in Search has lifted it out of a nearly 20-year streak of unprofitability.
Here’s the TL;DR:
1️⃣ Reddit now sees over 400M weekly visitors, with Q1 revenue hitting $392.4M, a 61% jump from last year.
2️⃣ A 27% rise in logged-in users (48.8M globally) suggests Reddit’s ad targeting potential is growing as a platform.
3️⃣ Logged-out user growth (54% internationally) points to more search and social referrals.
4️⃣ The gross margin reached 90.5%, reflecting a 190-basis-point increase compared to the previous year.
5️⃣ Net income stood at $26.2 million, up from a $(575.1) million net loss recorded the previous year.
Reddit’s shareholder letter 👇
Daily Active Uniques (“DAUq”) increased 31% year-over-year to 108.1 million Revenue grew 61% year-over-year to $392.4 million Gross margin expanded year-over-year to 90.5% Net income of $26.2 million, 6.7% of revenue. Diluted EPS of $0.13 Adjusted EBITDA1 of $115.3 million, 29.4% of revenue Oper...
