By Samiat May, 02, 2025 Business

Reddit Q1 2025 Earnings Beat Estimates with 61% Revenue Growth, Stock Soars

Reddit Inc. delivered impressive first-quarter 2025 results, exceeding analyst expectations and posting strong revenue growth. The company reported earnings per share (EPS) of $0.13, beating the estimated $0.01. Revenue reached $392 million, representing a 61% year-over-year increase.

Following the release, Reddit’s stock jumped as much as 19% in after-hours trading, later settling at a 3.97% gain, closing at $123.50.

Q1 2025 Highlights:

• EPS: $0.13 vs. $0.01 expected

• Revenue: $392 million, up 61% YoY

• After-hours stock movement: +19% peak, +3.97% close

CEO Steve Huffman attributed the strong results to increased site traffic and a deepening relationship with Google, despite recent fluctuations in search-related traffic due to Google’s algorithm updates and the growing impact of AI-driven search.

“We expect some bumps along the way from Google... but our long-term strategy remains intact,” Huffman said.
“There’s no doubt AI will transform how people search online, but Reddit will continue to thrive by delivering the subjective, authentic, and diverse perspectives users seek.”

Despite earlier volatility in traffic and a 15% dip in February following search changes, Reddit has rebounded strongly, capitalizing on its unique position in the evolving search and content ecosystem.

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