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Reddit Shares Jump on Big Q1 Beat, Upbeat Forecast

The raised outlook signals that AI ad tools are turning community posts into more ad sales.

Overview

  • Reddit shares rose 16% in premarket trading Friday following the company's above‑consensus revenue outlook.
  • The company posted Q1 revenue of $663 million and earnings of $1.01 per share, topping Wall Street estimates.
  • Management projected Q2 sales of $715 million to $725 million and adjusted EBITDA of $285 million to $295 million, both above forecasts.
  • Ad revenue reached $625 million for a 74% yearly gain as executives credited AI tools and a 75% rise in active advertisers for stronger campaign results.
  • Daily active users grew 17% to 126.8 million while global ARPU rose to $5.23 with U.S. ARPU at $9.63.