Reddit is one of tech’s most surprising winners

Reddit may not have the scale of Meta (META), Google (GOOGL), Amazon (AMZN), or even Snap (SNAP). But its first-quarter earnings, released Thursday after the bell, confirm it’s one of the most surprising winners of the post-AI attention economy.

The 19-year-old platform posted a 61% jump in revenue to $392.4 million, with more than 90% of that driven by advertising. Advertising revenue itself rose 61% to $358.6 million, powered by higher impressions and stronger pricing. International revenue surged 82%, a sign that Reddit’s global expansion is gaining traction.

While Reddit may not be “stealing” ad dollars from giants like Meta or Amazon, it’s clearly earning a bigger slice of high-intent budgets.

But the real story isn’t just the growth — it’s why it’s happening.

In an online ecosystem increasingly flooded with AI-generated sludge, Reddit’s appeal is refreshingly analog: real people giving real answers. CEO Steve Huffman framed it simply: “The world needs community and shared knowledge. And that’s what we do best.”

Reddit’s forums, human-moderated and text-driven, are increasingly becoming a trusted destination for users making product decisions, troubleshooting problems, or simply asking questions they’d never pose to a polished influencer. It’s easier to trust chatter about an online mattress purchase when you know the source is another human with a bad back, for instance. Just see r/mattress.

That authenticity and trustworthiness is resonating with advertisers. Reddit thrives not on scale or glitz, but on intent — reaching users when they’re actively seeking answers. Its open structure also means content surfaces high in search results, giving it an organic reach most rivals can’t match. The result: $115.3 million in adjusted EBITDA, with guidance for second-quarter revenue between $410 and $430 million.

That said, there’s a related risk investors are watching closely.

Reddit relies heavily on Google search visibility. A substantial portion of logged-out traffic — and by extension, advertising impressions — comes from Google referrals. As the search giant rolls out AI-generated “Overviews” that summarize forums like Reddit instead of linking to them, Reddit is already seeing disruption in affected geographies.

Management acknowledged as much, citing a second-quarter slowdown in unique daily visitors due to search testing. Analysts warn this platform risk could become an ongoing drag on growth if search dynamics shift too far from referral to AI summary.

For now, Reddit’s advantage is clear: People want real answers from real people, and advertisers are paying for that signal. But its ability to keep converting that intent into revenue may depend not just on Reddit’s refreshing authenticity — but also on Google’s evolving gatekeeping.