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Mar 31, 2025
Reddit Inc Q1 2025 Earnings Report
Reddit posted strong first-quarter results with its first GAAP profit since going public, fueled by a 61% revenue increase and substantial user growth.
Key Takeaways
Reddit delivered robust Q1 2025 results, achieving $392.4M in revenue and $26.2M in net income. The platform saw significant expansion in both advertising revenue and global engagement, with daily active users reaching 108.1M and a gross margin of 90.5%.
Revenue rose 61% year-over-year to $392.4M, driven by strength in advertising.
Net income reached $26.2M, reversing a $575M loss in the prior year.
Daily active users hit 108.1M, up 31% year-over-year.
Free cash flow was $126.6M, reflecting strong operational efficiency.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For Q2 2025, Reddit expects revenue between $410M and $430M and Adjusted EBITDA between $110M and $130M.
Positive Outlook
- Strong revenue guidance of up to $430M
- Continued margin expansion expected
- Adjusted EBITDA forecast suggests sustained profitability
- Robust user engagement momentum
- Platform investment continues to scale efficiently
Challenges Ahead
- No GAAP EPS guidance provided
- Wider guidance range introduces forecasting uncertainty
- Ad market trends may introduce volatility
- International growth comps getting tougher
- Potential increase in R&D and content moderation costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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