Reddit Q2 revenue surges 78% to $500 million, driven by AI and ad growth

New Delhi: Reddit, the social media platform, saw its revenue jump 78% year-over-year to $500 million in Q2. 

Advertising revenue, which accounted for 93% of the total at $465 million, soared 84% from last year. 

“Our AI advancements are unlocking new ways for advertisers to connect authentically with our users,” said CEO Steve Huffman in a statement.

The company reported a net income of $89 million in Q2, a sharp turnaround from a $10 million net loss in the same quarter last year, which had included IPO-related expenses.

Reddit’s data licensing deals, part of its “other revenue” stream, grew 24% to $35 million, driven by partnerships with AI companies like Google and OpenAI, who use Reddit’s content to train their models. 

The company also saw robust user growth, with global daily active users rising 21% to 110.4 million, slightly above estimates. 

Reddit Answers, an AI-powered search tool launched in December 2024, now boasts 6 million weekly active users, up from 1 million last quarter. 

Financially, Reddit posted adjusted earnings per share of $0.92 and a net income of $90 million. Gross margins hit 90.8%, with operating and free cash flow both at $111 million. Looking forward, Reddit projected Q3 revenue of $535-$545 million and forecast adjusted EBITDA of $185-$195 million.