In the first quarter of 2025, Reddit reported a substantial 61% year-over-year increase in advertising revenue, reaching $358.6 million. This growth contributed to a total revenue of $392.4 million for the quarter, also up 61% from the previous year.
Key Financial Highlights
- Total Revenue: $392.4 million, a 61% increase year-over-year.
- Ad Revenue: $358.6 million, up 61% from Q1 2024.
- Other Revenue: $33.7 million, a 66% increase year-over-year.
- Net Income: $26.2 million, compared to a net loss of $575.1 million in Q1 2024.
- Adjusted EBITDA: $115.3 million, representing 29.4% of revenue
- Gross Margin: 90.5%, up from 88.6% in the previous year.
User Growth and Engagement
Reddit’s Daily Active Uniques (DAUq) grew by 31% year-over-year, reaching 108.1 million users. This increase in user engagement has been a significant factor in the platform’s revenue growth.Investor’s Business Daily
Regional Performance
- United States: Revenue reached $313.9 million, a 57% increase from the previous year.
- International Markets: Revenue grew to $78.5 million, marking an 82% year-over-year increase.
Future Outlook
Reddit projects Q2 2025 revenue between $410 million and $430 million, indicating continued growth momentum.
