Reddit Had Good Karma In Q1, With Ad Revenue Up 61%

Happy The first iPo-AversionReddit. (AND Happy 20th birthday.)

The market has brought you a gift.

Reddit’s shares rose almost 18% on Thursday in the store after working hours thanks to revenue in the first quarter and strong guidelines for Q2.

The company, which came out in the public in February 2024 and reported for the first time last March, made just over $ 392 million in the first quarter, and the advertisement revenue made the share of Lion at $ 358.6 million.

Total revenue and advertising from ads increased by 61% per annual year.

Reddit expects the total revenue in Q2 to fall somewhere between $ 410 million and $ 430 million, which would represent 46% to 53% of revenue growth compared to one year.

Increasing ads from ads is generally guided by the impression growth and higher advertisements.

“We provide more valuable impressions and advertisers benefit from improving efficiency,” Coo Jen Wong investors said.

In these uncertain times, etc.

Reddit has invested great investments in his advertising gathering with an emphasis on advertising advertising and facilitating the advertisers.

In Q1, for example, more than 90% of his managed service advertisers accepted Reddit’s first time to monitor pixels and reddit, also recently launched AT Integration between his pixels and Google Manager To simplify the process of adopting new ad formats.

“We believe that gains in prices reflect progress from our investment and targeting in the middle and lower streams,” said CFO Drew Vollero. “We provide more clicks and conversion, which drives more effective advertising consumption and a higher refund for our advertisers.”

But what about the uncertainty on the market? (Of course, it was the issue of investor de Rigueur on the uncertainty on the market and that the macro environment could affect Reddit’s business.)

“I will admit that there is a lot of uncertainty,” Wong said, “but, so far, it’s mostly a job as usual.”

According to Wong, Reddit is actually quite well positioned to help the brand through volatility as a source of insight into changing customer behavior.

“Reddit is a truly important resource for users, for people who are just trying to figure out, ‘Should I buy this now? “Or are they [they] becoming more considered as their shopping for uncertainty, “Wong said.” They come to Reddit to move that. “

Google Question

And when users come to Reddit, it is increasingly spent through a Google Search Guide.

At the beginning of last year, Reddit has signed a data licensing contract that allows Google to wear its AI models and improve search results Based on Reddit’s pile of content generated by the user. In return, increased visibility discussions about Reddit within the Google Search results helps to establish traffic on Reddit.

But people also add “Reddit” by the name of their Google Search, said Reddit CEO Steve Huffman.

“In the last 90 days, the word” Reddit “was the sixth most sought after word on Google between” news “and” Trump, “Huffman said.” Google Algorithm serves users what they want and want to seek, and we have had a long and symbolic relationship with Google. “

Then the landscape of searching dramatically changes with the appearance of generative models of the AI ​​drive.

But Huffman said he did not worry that the “short -term protrusion” would affect the Reddit’s long -term strategy as a result of Google’s algorithm.

“The search ecosystem is under a major construction, and a close expression could be more uneven than usual,” Huffman said. “But is there a long -term risk to Reddit? In my opinion, the answer is” no “, and, in fact, I think there is an opportunity.”