Hi HODLers, Hiveans and Lions,
Another quarter where #reddit crushed the consensus. It even crushed my most bullish expectations. I was thinking that the AI Search from Google and some other headwinds would slowdown the company's growth. It wasn't the case at all!
It powered through on all cylinders and delivered stellar results.
- Revenue reached $500 million in Q2 2025, with U.S. revenue up 79% and international revenue up 71% year-over-year.
- Advertising revenue was $465 million, while other revenue, including data licensing, was $35 million.
- Average Revenue Per User (ARPU) rose 47% to $4.53.
- Adjusted EBITDA margin was 33% and net income margin was 18%.
Notable quotes from the Earnings Call
Steven Ladd Huffman, CEO, highlighted "particularly strong performance on the revenue and profitability lines," citing 78% year-over-year revenue growth to $500 million and a 21% increase in daily active users to 110 million.
Huffman emphasized Reddit's unique position as "the #1 most cited domain for AI across all models" and described the platform as "one of the most important and differentiated data sources" for large language models.
Discussing the Outlook for the rest of the year, management appeared bullish stating that the last trend of monthly earnings were continuing to accelerate.
It might pop today and during the next few days as I believe there is between 13% to 20% of the outstanding shares being shorted right now. So, it looks like we are in for a big shortsqueeze!
All in all, the train is on the right tracks and it does not really matter what $RDDT performance will be in the short term. It if continues to leverage its data gold, the company will do great!
Stay safe out there,