The company's research and development costs increased by 300% year-over-year as it expanded its AI partnerships and advertising strategy. More than half of the revenue growth for the quarter was driven by its performance advertising segment. Reddit's AI data licensing deals, such as its $60 million per year agreement with Google, were highlighted as a significant revenue source.
Key takeaways:
- Reddit exceeded expectations for its first financial quarter as a publicly traded company, with strong revenue growth and record user traffic.
- The company reported revenue of $243 million, up 48% from the same period last year, and a record 82.7 million daily active users, up 37% from the year before.
- Despite not being profitable yet, the net loss of $8.19 a share was lower than the anticipated $8.75 a share loss.
- Research and development costs increased by 300% year-over-year as the company expanded its AI partnerships and advertising strategy.