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2025-09-10 11:25:42

Reddit Reports Strong Q1 with High User Growth and $392M Revenue

Reddit has reported strong first-quarter results for 2025, marking continued progress in both user growth and revenue generation as it refines its advertising strategy. The platform now boasts 108 million daily active users, an increase of nearly 7 million since the previous quarter, while its weekly active user count has surpassed 400 million – up 31% year-over-year.

International expansion played a key role in Reddit’s user growth, particularly in Brazil, where daily users grew nearly 80% compared to the same period last year. The company credits this rise, in part, to its expanding machine translation capabilities, which now support 13 languages, including Vietnamese, Thai, and Latin American Spanish. “Machine translation continues to be an important part of our international strategy,” Reddit noted in its report.

However, Reddit’s user engagement trends differ from other platforms. Unlike Snapchat or Instagram, where the ratio of daily to monthly users is typically closer to 1.8x, Reddit’s 4x jump in weekly users suggests more episodic usage. This pattern may reflect Reddit’s utility as a destination for topic-specific research rather than daily social interaction. While this behavior contributes to higher traffic – including a 38% increase in logged-out visitors – it also raises concerns about the platform’s reliance on Google referrals, which could impact ad performance and stability if search traffic shifts.

On the revenue side, Reddit reported $392 million for the quarter. U.S. users remain the primary revenue source, although international growth is gaining traction. The company also highlighted “meaningful progress” with its Dynamic Product Ads, which target users within relevant subreddits using improved machine learning models.

Overall, Reddit’s latest figures show a platform maturing into its role as a niche-driven, insight-focused social network – albeit with challenges ahead in sustaining engagement and diversifying revenue sources.