Reddit Projects Up To $725 Million In Revenue As Growth Streak Continues

Reddit delivered another strong signal to investors that its advertising business could still be carrying real momentum, with the company projecting second-quarter revenue of $715 million to $725 million, ahead of Wall Street's average estimate of $714 million. The guidance came after first-quarter sales rose 69% to $663 million, beating the $609.3 million average estimate and extending Reddit's run of more than 60% revenue growth to seven consecutive quarters. Shares climbed about 7% in extended trading after closing at $147.23 in New York, although the stock is still down 36% so far this year.The core investment story remains Reddit's push to turn its massive network of discussion forums into a larger and more diversified advertising platform. Since listing on the stock exchange two years ago, Reddit has focused on growing its user base and expanding the advertising business that drives most of its revenue. The company is still meaningfully exposed to a concentrated group of advertisers, with more than 20% of its 2025 revenue coming from its 10 largest advertisers, according to a corporate filing. But Chief Operating Officer Jen Wong said Reddit continues to add advertisers across every vertical and geography, while international sales increased 76% in the first quarter. Daily unique visitors rose 17% year-over-year to 126.8 million, matching Wall Street expectations.The next question for investors is how much Reddit can possibly extract from the artificial intelligence boom beyond its advertising growth. Reddit has already reached data licensing agreements with OpenAI and Alphabet's Google worth hundreds of millions of dollars, giving AI companies access to one of the internet's largest libraries of human discussion. Bloomberg reported in September that Reddit had explored a potential new deal with Google, and Wong said the company is active in terms of discussion with Google and OpenAI about next steps tied to current licensing agreements, while declining to offer more detail. For investors, that leaves Reddit with a fast-growing ad business in the present and a possible AI data opportunity that could become more important if demand for training and licensing content continues to build.