Reddit Surges on Q1 Beat, Cites Ad Tech Gains

Reddit reported first-quarter revenue of $392.4 million, a 61% year-over-year increase, and a net profit of $26.2 million, both exceeding Wall Street expectations. Daily active unique users surged 31% to 108.1 million, surpassing analyst forecasts. The company projects second-quarter revenue of $410–$430 million, reflecting confidence in continued digital advertising growth despite economic uncertainty and U.S.-China trade tensions. Reddit attributes its strong results to investments in ad technology, especially conversation placement ads, and increased user engagement. CEO Steve Huffman highlighted Reddit’s resilience and adaptability in uncertain times but noted the potential for user traffic volatility due to changes in Google’s search algorithms. Shares surged up to 19% in after-hours trading following the results.