After the upgrade of the advertising system drove up sales, Reddit's stock price continued its strong performance from its initial public offering.

In the first quarter, Reddit's revenue increased to $243 million, better than expected. The company aims to expand AI data authorization and further drive growth through user economy and internationalization. Reddit is gradually establishing a multilingual platform to attract global users.

Highlights of Financial Reports

Reddit announced that revenue increased by 48% in the first quarter ending March 31, reaching $243 million, exceeding the average analyst estimate of $211.9 million. This is due to the improvement of the Reddit advertising system and the expansion of the user base. Reddit's initial public offering (IPO) in March this year was also quite successful, raising approximately $748 million.

Growth drivers

The growth of Reddit is mainly driven by improving website usability and advertising targeting technology. Reddit predicts that its revenue for the current quarter will reach $240 million to $255 million, while the number of daily active users will increase by 37% to reach 82.7 million. The company is using its vast database to reach a data authorization agreement with artificial intelligence companies, which is crucial for training AI systems.

User Economy and Global Expansion

CEO Steve Huffman stated that Reddit's next major business model is the so-called "user economy," which will enable Reddit users to make money through subscriptions, gifts, and favorites. In addition, Reddit plans to increase sales through international expansion and multilingual translation, and expects the proportion of non US users to increase from 50% to 80% -90% in the future.