Reddit (NYSE:RDDT) shares surged over 6% in pre-market today after the company posted first-quarter earnings and revenue that far exceeded analyst expectations, boosted by accelerating ad sales and strong user growth. The upbeat results, along with optimistic guidance, signaled early success from Reddit’s recent investments in advertising infrastructure and AI capabilities.
The company reported adjusted earnings of $0.13 per share, easily topping the $0.01 consensus estimate. Revenue came in at $392.4 million, representing a 61% year-over-year surge and beating forecasts of $369.3 million.
Advertising, Reddit’s primary revenue driver, matched overall growth with $358.6 million in sales. Daily active uniques (DAUq)—a key measure of engagement—rose 31% to 108.1 million, reflecting the platform’s growing traction among users seeking community-driven content.
Reddit also swung to profitability, reporting net income of $26.2 million compared to a loss of $575.1 million in the same quarter last year.
Looking ahead, the company expects second-quarter revenue between $410 million and $430 million, comfortably above the $392.9 million Wall Street projection. Adjusted EBITDA is forecasted between $110 million and $130 million, signaling continued confidence in ad monetization momentum.