Reddit’s action jumped 19% after hours Thursday after the company published its report on the first quarter results. During the publication, it was up 7% after closing the market.
Reddit’s turnover increased by 61% in annual shift to $ 392.4 million in the first quarter of 2025, the company said in a profits. CEO Steve Huffman declared in a letter to investors that this marks the third consecutive growth quarter of more than 60% for Reddit.
Reddit has experienced considerable growth in the past year, thanks in part to a growing relationship with Google and the growth of the site of people in search of terms on Reddit via Google Search. In February, Reddit’s actions fell by more than 15% after CEO Steve Huffman said in a profits that Reddit had seen “volatility” in traffic after Google changed its algorithm.
Huffman was asked how he sees “user growth taking place” during the rest of the year, since Google has already changed its algorithm this year.
“We are expecting bumps along Google, because we have already seen some this year,” said Huffman. “This is planned for a year, but since the research ecosystem is under heavy construction, the short term could be more joyful than usual.”
However, Huffman said that “short -term bumps” will not affect Reddit’s long -term strategy and growing research opportunities. Huffman said that there is “no doubt” that AI models will change the way people are looking for information on the Internet, but Reddit will always meet the needs of people looking for “subjective, authentic, disorderly and multiple points of view that Reddit provides”.
“In the same way as Reddit, in the past decade, has been an alternative to social media – social media being performative and manicured and reddit being the opposite – Reddit communities and conversations will be an alternative to AI research responses,” said Huffman.
Huffman also declared in the call of the gains that Reddit had maintained through major cultural changes such as the rise of smartphones and the covid-19 pandemic because “the world needs the community and shared knowledge, and that’s what we do best”.
“Macro environments constantly evolving as these create both challenges and opportunities,” Huffman told investors. “We grew up through difficult times before people need connections and information just as much in uncertain times, and we are well placed to meet this moment.”
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