Reddit Finanical Growth Attributed To Performance Ad Revenue

Reddit released earnings on Wednesday, highlighting its search features. The company's performance revenue that drove more than half of the growth and licensing data to train open-source AI models will become the key to ongoing success.

The company reported that its revenue rose 71% year-over-year to $427.7 million in Q4 2024, with ad revenue rising 60% year-over-year to $394.5 million in the quarter. Its global average revenue per user increased 23% to $4.21.

For the full year, 2024, total revenue rose 62% year-over-year to $1.3 billion, and ad revenue increased 50% YoY to $1.2 billion.

While ad revenue rose, Reddit CEO Steve Huffman said in a letter to shareholders that a Google search algorithm later in the quarter change caused some volatility with user growth during the fourth quarter, but Reddit’s search-related traffic has recovered in the first quarter of 2025.