Reddit Smashes Q4 Milestones, Sets Sights on Global Domination
Reddit, the popular social news and discussion website, has announced a stellar fourth quarter, surpassing $1 billion in revenue and reaching 100 million daily active users (DAUqs) for the first time. The milestone marks the end of a transformative year for the company, which went public in 2024.
In a conference call with investors, Reddit's CEO Steve Huffman highlighted the company's impressive growth, citing a 71% year-over-year increase in total revenue and 3.5x faster growth than total costs. The company also reported 39% year-over-year growth in DAUqs, driven by strong international expansion, which now accounts for 46% of Reddit's user base.
"We've made tremendous progress towards our goal of becoming a global platform," said Huffman. "Our users have created an incredible repository of human-generated information online, and we're using AI to make this content accessible to everyone."
One key area of focus for the company is international growth, with machine translation rolling out in 8 languages and more on the way. This feature enables international users to participate in their favorite communities and find relevant information, further solidifying Reddit's position as a global platform.
Reddit's advertising business also saw significant growth, with customers diversifying across industries, objectives, and geographies. The company noted that over 40% of internet users consider recommendations on Reddit the most influential factor in purchasing decisions, surpassing expert reviews, influencer endorsements, and aggregated star ratings.
"Reddit conversations are where interests meet intent," said Huffman. "They inform purchase decisions and offer valuable spaces for brands to connect with people looking for trustworthy opinions."
The company also highlighted its efforts to improve the experience for users seeking information on Reddit. To this end, Reddit is focused on making on-platform search a truly first-class product and the go-to place to find information on the platform. The company launched the beta for Reddit Answers, an AI-powered search tool that provides curated summaries of community discussions.
"We're committed to making sure our users have a seamless path to discovering what they need on Reddit," said Huffman. "Our focus on improving search and other key areas will help us continue to grow and serve our users better."
The company's Q4 results demonstrate its strong momentum and commitment to becoming a global platform. As Reddit continues to evolve and innovate, it's clear that the company is poised for continued success in the years to come.
